Planning a Baby

Hi,

First post on here...

I have a 9 year old son who lives with his mother and her husband and 3 of their own children.

I live with my wife and no children. We both work.

I pay CSA every month (old system), just over £200 a month and things are fine. I see my son every week, get on well with ex and her husband no problems.

My wife and I are now thinking of having a child of our own and we are trying to work out how much money we have left each month after bills, CSA etc.

Im I correct in thinking that my CSA would be reduced once we have a child as I will then have 2 children to support?

I'm guessing the amount I pay will be halfed (makes sence to me). Anyone have any ideas?

Also, I've heard that when we receive child benefit for the new baby, this is counted as income and therefor used in the calculation for the CSA payments. Please tell me this is incorrect!

Many Thanks

James

Yes, there will be a reduction for having another child in your own home but not sure it will be halved - that's a bit optimistic. Have a look on the CSA website - there is a calculator there and you can put in different scenarios. Failing that, give them a call - they do try to be helpful, despite their dreadful reputation!

Thanks for that.

I've just done a quick calculation using the CSA's own on-line calculator.

Currently I pay £48 a week.

If I have a child with my wife, this is reduced to £41 a week!

Can this be correct? Why does my 1st child get more money? This is ignoring any parners details.

If I add £20 a week for child benefits we will get when we have a new baby to my weekly income this is reduced to £44 a week.

So in other words my new child is only worth £4 a week!!

Please can someone assure me this is incorrect before I send a letter off to my MP.

Many Thanks

James

I did think half would be optimistic. I do not know the reasoning behind it - but probably a lot to do with us being adults who need to take responsiblity for our actions. Having another baby when you already have one or more children is a serious issue and reducing income by this amount will undoutbedly have a major effect on your other child.

Depending on your income, you may also be entitled to Child Tax Credit and Working Families Tax Credit (which will pay up to 80% of your childcare costs) once the new baby is born. For those on very low incomes, there are Healthy Start Vouchers and the Sure Start Maternity Grant aimed at helping you purhcase necessary items for the baby. Hope that helps.

Thanks Mumtoboys,

Will the CSA try and take CTC and WFTC also? What are the income levels for you to be able to claim?

Thanks

James

Not entirely sure is the answer to your questions. Try www.entitledto.co.uk to see if that clarifies anything for you...(it might be www.entitledto.com). That should give you an indication of what you might receive in Tax Credits once a baby is born. You would do well to phone the CSA and see what they say - I am pretty sure that the intention of Tax Credits is that they are paid to the stay-at-home person which would mean your personal income is unaffected even if it was used to make the calcaulations in the first place. So no more to the CSA on that basis but do check with them to be sure - they are helpful.

You are entitled to these Tax Credits on quite high incomes (certainly more than £50k off the top of my head, more in the first year of a baby's life to compensate for the fact the mother is unlikely to work, I assume) but they are means tested so with the exception of those on the lowest incomes, the amounts involved are not huge. However, it all helps.

Forgot the 'Health in Pregnancy Grant' as well - £190 for turning up at your antenatal appointments towards the mid/end of your pregnancy. Not means tested.

And you are now entitled to 9 months statutory maternity pay rather than just 6 months which is also a help. That would be paid to your partner so would not affect your CSA claim.

James

If you and your wife want a baby, don't think too hard about the cost. Fifteen years ago I was a single mum with a baby and had no idea how I was going to afford to bring her up. I have never received any child maintenance from her father. However, I have always worked and managed to bring her up and am proud of her.

Children do cost a lot of money, but we all seem to manage somehow.

Dee