Case study: ‘I’d have had to give up my job if they cut my tax credits’

TRACEY Nugent, 35, lives in Glasgow’s South Side with her ten-year-old son, Aarron. She works 22½ hours per week as an administrator and says any cut in the tax credits she receives could leave her struggling to make ends meet.

“I would have had to give up my job if they were going to cut my children’s tax credit back any more,” she said.

“Because I only work 22½ hours a week just now, my wages are just covering my mortgage. I can squeeze my council tax into that as well sometimes, but the children’s tax credit is what I live on.

“Each Wednesday I know I’ve got a certain amount of income there.”

Ms Nugent says the lack of clarity surrounding the new universal credit is also adding to the anxiety among other parents in her position.

“The changes are completely confusing, and I think that’s what people are frightened of,” she said. “I know I am, because I want to know how things will change for me, if it’s going to be better or worse.”

She added: “Given my children’s tax credit is a wee bit higher this year, because I’ve just returned to work, I think that’s going to affect me next year and I’m going to have to be looking for a full-time job, or I’ll be looking to give up my work.

“If that happened I would need to go full-time and give up the childcare, which isn’t ideal because Aarron socialises through the after-school care.”

Today’s report indicates that a single parent in part-time work with two children would be £52 a week worse off – or £2,704 a year – under Universal Credit, after a coalition government pledge to make up the difference in cash comes to end.

Ms Nugent says she is currently about £36 a month better off being in work because of the way the working tax credits system operates.

Ms Nugent added that buying essentials, such as clothing and food, became difficult when her income has fallen before.

“The clothing would be an issue, because we were struggling to make ends meet whenever we bought a new pair of shoes for Aarron,” she said.

“Food was another issue, I had to really cut back on my food budget and we were both going without meals.

“Although I’m aware of the fact that I can put a meal on the table just now, that worry is still there. For example at the Easter holidays, if I’m paying double childcare I’ve got to make that up myself, and if I do extra hours at work, they cut children’s tax credit back.”

But the Ms Nugent is adamant that she wants to get out to work, rather than staying at home.

“I need to go to work,” she said. “I had mental health issues before I returned work in October of last year, and I feel as if I’ve come on leaps and bounds.

“It’s had a very positive effect on my wee boy as well, because he’s up and ready for going out to school in the mornings, whereas before, when I was in the house, he would try and get the day off.”