Being a single mother can be financially challenging. However, there are a number of benefits and tax credits that single mothers may be eligible for to help ease the financial burden.
Child Benefit
Child Benefit is a payment made to people bringing up children aged under 16, or under 20 if they are in approved education or training. It is paid every 4 weeks and there is no limit on how many children you can claim for.
To be eligible for Child Benefit as a single mother, you must live in the UK and be responsible for a child under 16. You can continue to receive Child Benefit for a child over 16 if they are in approved education or training. Your income does not affect your eligibility.
The current weekly rates for Child Benefit are:
- Eldest or only child – £21.80
- Additional children – £14.45 per child
So for a single mother with two children, you would receive £36.25 per week or £145 every 4 weeks.
Child Tax Credit
Child Tax Credit provides support for families with low incomes. It is made up of several elements including the child element, family element and disabled child element. To be eligible as a single mother:
- You must be responsible for at least one child under 16, or under 20 if they are in approved education or training
- You must work a certain number of hours per week – usually at least 16 hours
- Your income must be below a certain threshold – for the 2022/23 tax year this is £17,005 for those with one child
How much you receive depends on your circumstances including your income. For example, for the 2022/23 tax year the maximum annual entitlement with one child is:
| Child element | £2,935 |
| Family element | £545 |
| Basic element | £545 |
| Total | £4,025 |
Payments are made every 4 weeks and can be claimed alongside other benefits such as Housing Benefit and Income Support.
Income Support
Income Support is a means-tested benefit that helps people on a low income whether in or out of work. It tops up weekly income to a minimum guaranteed level. To claim as a single mother, you must:
- Work less than 16 hours per week
- Have savings of less than £16,000
- Be caring for a child under 5 OR receiving Child Tax Credit for a child under 16
How much you receive depends on your income and circumstances. The main elements are:
| Personal allowance | £77.00 per week |
| Premiums | £17.10 – £36.85 per week |
| Housing costs | Variable based on rent |
| Other costs | Variable based on circumstances |
Income Support can be received on top of other benefits such as Child Benefit and Disability Living Allowance. You may also be eligible for help with housing costs like rent.
Working Tax Credit
Working Tax Credit supports working people on low incomes by topping up earnings. To be eligible as a single mother, you must:
- Work a certain number of hours per week – usually at least 16 hours
- Have an income below a certain threshold – for 2022/23 £6,770
- Be responsible for at least one child, or qualifying young person
How much you get depends on your specific circumstances. There are several elements including:
| Basic element | Up to £2,005 a year |
| Couple element | Up to £2,060 a year |
| Lone parent element | Up to £2,125 a year |
| Childcare element | Up to £122.50 a week for 1 child |
| Disabled worker element | Up to £3,345 a year |
| Severe disability element | Up to £1,445 a year |
Payments are made directly into your bank account every 4 weeks. You can claim Working Tax Credit alongside Child Tax Credit.
Housing Benefit
Housing Benefit helps pay your rent if you are on a low income. As a single mother you may be eligible if you:
- Claim another means-tested benefit like Income Support
- Have savings under £16,000
- Are responsible for a child, or qualifying young person
- Pay rent for your home
How much Housing Benefit you receive depends on your weekly rent and personal circumstances. It can cover all or part of your rent. If entitled to the maximum amount, you could get up to £600 a week for a 4+ bedroom house as a single mother.
Council Tax Reduction
If you are on a low income, you may be eligible for a Council Tax Reduction from your local authority. This can reduce your Council Tax bill by up to 100%.
To qualify as a single mother you must:
- Be liable to pay Council Tax
- Have savings under £16,000
- Have a low weekly income
How much of a reduction you get depends on your income, household circumstances, who lives with you and how much Council Tax you pay. Student and non-dependants living with you may affect entitlement.
Free school meals
Children from low income families may get free school meals during term time. In England, your child is eligible if you receive any of the following:
- Income Support
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Support under Part VI of the Immigration and Asylum Act
- The Guarantee element of State Pension Credit
- Child Tax Credit (provided not also receiving Working Tax Credit and have an annual income under £16,190)
- Working Tax Credit run-on (paid for 4 weeks after qualifying for Working Tax Credit ends)
Your child’s school can provide more details on eligibility and how to apply. Free school meals could save you over £400 a year per child.
Health costs
As a single mother you are entitled to free:
- NHS prescriptions
- NHS dental treatment
- Sight tests
- Voucher towards glasses or contact lenses
- Wigs and fabric supports
To claim, you must be named on or entitled to an exemption certificate. Speak to your doctor, dentist or optician who can provide a form to apply.
Grants and bursaries
If you are a single mother looking to start a new career, there are several grants and bursaries you can apply for including:
- Turn2Us Grant Search – Database of grants and bursaries for single mothers including education, training and child-related costs
- Gingerbread Grants Scheme – Awards grants for education, training and business ideas for single parents
- Buttle UK Grants – Helps vulnerable children and young people with costs related to education, training, cultural activities and household items
- Family Action Grants – Financial support for families in need struggling with costs of household items, holidays or education
Always check eligibility criteria carefully and apply as early as you can. Competition can be tough for grants so look for lesser-known local charities and trusts you may qualify for.
Help with childcare costs
Paying for childcare while you work can be expensive. However, there is support available for single mothers including:
- Childcare element of Working Tax Credit – Pays up to 70% of your childcare costs up to £175 for one child a week. Reduces the maximum payable as income rises.
- Tax-Free Childcare scheme – For every £8 you pay into an online account, the government contributes £2 up to £2,000 per child per year
- Childcare vouchers – If your employer offers childcare vouchers you can sacrifice up to £55 a week from your salary tax-free
- Free early education – 15 hours a week free childcare for 3-4 year olds, more may be available if you meet eligibility criteria
Apply for tax credits, Tax-Free Childcare and childcare vouchers online via GOV.UK. Check with your local authority regarding free hours for early education.
Discounts
As a single mother, you may be eligible for discounts on things like:
- Energy bills – some providers offer discounts for single parents and people on low incomes. Ask your supplier what help they offer.
- Broadband and phone packages – some providers offer discounted ‘social tariffs’ if you claim certain benefits
- Water bills – water companies offer reduced tariffs for single parent families and people on low incomes
- Council services – local authorities offer single parent discounts on things like leisure services and adult education courses
- Railcards – single parents can get a 16-25, Two Together or Family & Friends Railcard for 1/3 off rail fares in the UK
Always ask about available discounts when signing up for services – you may never know about them otherwise. Carry proof of entitlement when applying.
Charity assistance
If you are struggling financially, charities may be able to help with things like:
- Food parcels
- Clothing and school uniforms
- Furniture or household items
- Grants for broken appliances like cookers or washing machines
- Cheap or free activities and day trips for your family
Contact your local Citizens Advice bureau to find out what help is available in your area. National charities like Turn2Us, Buttle UK and Family Action can also assist families in need.
Benefit cap
There is a limit on the total amount of benefits you can receive if you are of working age, known as the benefit cap. This is:
- £384.62 per week if you are a single parent outside Greater London
- £442.31 per week if you are a single parent in Greater London
Any benefits you get on top of this limit will be reduced to bring you down to the cap. Child Benefit and disability benefits are not affected. The cap does not apply if you work enough hours per week.
Benefit tax credits
Most benefits are not taxable and do not need to be declared on your tax return. However, tax credits like Child Tax Credit and Working Tax Credit count as taxable income.
Payments you receive between 6 April to 5 April the following year must be reported to HMRC. You may have to repay some tax credits if your income for the year is too high.
Changes of circumstances
You must inform the relevant government agencies immediately if your circumstances change. Changes you should report include:
- A child leaves school or leaves home
- You start living with a partner
- You stop being responsible for a child
- Your income changes
- You or your child have a medical condition or disability confirmed
- You change your address or bank details
Changes could increase entitlement, reduce payments or make you ineligible. You may be prosecuted if you continue to claim after a change in circumstances.
Overpayment of benefits
You may be overpaid benefits if you do not report relevant changes on time, give wrong information or are paid in error. This will be recovered in several ways:
- Deducted from future benefit payments
- Taken from other benefits you claim
- Taken from your earnings
- Paid directly to DWP or local authority
Overpayment recovery can be challenged if it causes hardship. Get advice immediately if you are being asked to repay any benefits.
Appealing benefit decisions
You can appeal benefit decisions you disagree with including:
- Refused benefit claims
- Benefit awards lower than expected
- Benefits stopped
- Overpayment amounts
The appeal process has two stages. First, ask for a revision of the original decision. If still unhappy, appeal to an independent tribunal within one month.
Have evidence ready proving why you should get the benefit and get advice from Citizens Advice or a welfare rights organisation.
Help and advice
There is help available if you are struggling with your finances or unsure what benefits you are entitled to. Contact the following for free information and advice:
- Citizens Advice – Help to challenge benefit decisions, apply for grants and find out about help from charities
- Turn2Us – Benefits calculator to get an idea of entitlement and eligibility
- Money Advice Service – Money & budgeting tool and advice line for free debt help
- EntitledTo – Free benefits calculator and local help to apply
- DWP – Manage your benefits and credits online via your Universal Credit account
Conclusion
Single mothers are entitled to a range of financial help and support. Core benefits like Child Benefit, Child Tax Credit, Income Support and Housing Benefit provide a basic safety net. Further help is available for costs like childcare and household bills. Grants, bursaries, discounts and charity assistance can provide vital extra support.
Make sure you claim everything you qualify for. Report changes immediately, respond to requests for information and seek advice for any benefit problems or appeals. Managing your money as a single parent can be challenging but you do not have to do it alone.