Have you ever wondered what benefits you’re entitled to if you work 20 hours a week? You probably have a few questions on a 20-hour contract. Can I claim holiday pay? What about sick pay? Do I get maternity or paternity leave?
There are a lot of myths and misconceptions about part-time workers rights. Even if you only work a few hours a week, you’re still entitled to certain benefits. This article will reveal those benefits that you can claim if you work 20 hours a week in the UK.
Benefits for Working 20 Hours a Week
Here are some benefits you may be eligible for if you work 20 hours a week.
- Working Tax Credits: Supplementing a Low Income
- Child Tax Credit: Financial support for raising a child
- Housing Benefit: Help With Rent Costs
- Child Benefits: Supporting Your Family
- Council Tax Reduction: Support for low income
- Disability Benefits: Financial Help for Health Conditions
Working Tax Credits: Supplementing a Low Income
If you work 20 hours a week in the UK, you may be eligible for Working Tax Credits. These benefits are given to a low-income person who works at least 16 hours a week. But if you are between 25 to 59, then you have to work 30 hours a week to get this benefit.
The amount you receive depends on your income and circumstances. In general, they pay around £2,280 a year, but you can claim up to £3,685 a year. They directly transferred the tax credit amount to your bank or building society account every week or 4 weeks.
You can apply for Working Tax Credits online, by phone, or by post. You’ll need details like your income, hours worked, and children’s information.
Child Tax Credit: Financial support for raising a child
If you work 20 hours a week as a parent in the UK, you may be entitled to receive a Child Tax Credit. It provides financial support to raise a child.
Child Tax Credit was paid up to £545 as a family element. They also provide the child element up to £3,235 each child. However, the actual amount you receive depends on your income and personal circumstances.
You can apply for the Child Tax Credit through the government website. In the process, you need to provide your income, hours worked, and your children’s information.
Child Tax Credit can provide essential financial support for working families. Don’t miss out on money that you and your children are entitled to.
Council Tax Reduction: Support for low income
If your income is low, you may be eligible for a council tax bill reduction of up to 100%. This is known as Council Tax Reduction and each local authority runs its own scheme. Contact your local council to apply, and provide information about your income and household members. They will calculate how much your council tax bill can be reduced. They apply directly the reduction to your council tax bill, so you pay a lower amount.
You need to renew your claim for council tax reduction each year. The scheme aims to provide financial help for those working part-time or with a low income.
Housing Benefit: Help With Rent Costs
If you work 20 hours a week, you can claim Housing Benefit. It is a crucial benefit that provides to individuals or families. Mainly Housing Benefit was paid towards a low-income person.
The amount you receive will depend on your income, rent amount, and whether you have any savings. Usually, your benefit will be calculated on the basis of actual rent plus any other service charges.
If you have more than £16,000 in savings then you are not eligible for housing benefit. Also if your house has a spare bedroom then the benefit will be reduced.
To apply, contact your local council and provide the necessary details. They will calculate how much you can claim. The process can take up to 8 weeks.
Child Benefits: Supporting Your Family
If you work 20 hours a week in the UK, you are entitled to claim child benefit. As a parent of a child under 16 years old, you can claim Child Benefit. If your child stays approved for education or training, you can also claim child benefits up to 20 years old.
Child Benefits provide you with a fixed amount every week for each eligible child. The amount you receive depends on the number of children you have. For your first child, you can get up to £24 per week. After that, for any child you have, you get up to £15.90 per week. These funds can be used to help to raise your children. You can spend on food, clothes, or other activities. These benefits typically stop when your child turns 16 or 20 years old.
Disability Benefits: Financial Help for Health Conditions
If you have a disability and still work 20 hours a week, you are entitled to disability benefits. There are several disability benefits available in the UK. These include:
1. Personal Independence Payment (PIP)
PIP is a disability benefit. If you have a long-term health condition or disability, you can get it. PIP helps with the extra costs of daily living and mobility. PIP is usually given every 4 weeks. For daily living gives up to £101.75 and for mobility gives up to £71.00.
2. Attendance Allowance
You can claim an attendance allowance when you need help with personal care or moving around. The attendance allowance depends on the level of help you need. If you need help only in the daytime or in the night, then you can get £68.10. But if you need help both day and night, then you can get £101.75. These allowances were paid weekly basis.
3. Employment and Support Allowance (ESA)
ESA is a disability benefit for those who cannot work due to a disability or health condition. ESA gives money to help with living costs and support to get back into work.
If you are under 25, you’ll get up to £67.20 a week while your claim is being assessed. But if you’re aged 25 or over, you’ll get up to £84.80. These amounts are paid up to 13 weeks while your claim is being assessed.
After your assessment, you can get up to £129.50 a week if you’re in the support group. But if you’re in the work-related activity group, then you will get £84.80 a week.
Is it worth working 20 hours a week?
In my opinion, working 20 hours a week is worth it, if you are a student. When I was in college, I also had a part-time job that gave me a financial support.
However, working 20 hours a week is worth it or not depending on you. I know that working 20 hours a week pays you less, but extra income gives you financial support.
What benefits do I lose if I work 20 hours a week?
If you work 20 hours a week, you may lose some benefits that full-time earners receive. Some of the following benefits you may lose.
- Full-Time Employment: Full-time employees have permanent or fixed-term contracts with guaranteed hours. But, part-time workers have more flexible hours and may be on zero-hour contracts. That means their job is not guaranteed.
- Higher hourly pay: Full-time earners get paid on the basis of the National Living Wage. But the part-time employee didn’t get wages on the basis of the National Living Wage. Therefore, their wages will be low compared to full-time earners.
- Paid holiday: Full-time employees get up to 28 days of paid holiday each year. Part-time employees also get holiday time, but the amount is based on the number of hours they work. So it might be less.
- Paid Sick Days: When full-time employees are sick or injured, they get Statutory Sick Pay (SSP). Currently, SSP pays £109.40 per week. The employer pays it for up to 28 weeks. Part-time employees can also get SSP, but it will adjust to match the hours they work.
- Maternity/Paternity Leave: Full-time employees also get maternity or paternity leave. During the maternity leave, you will get 90% of your average weekly earnings for the first 6 weeks. After that, you will get £172.48 or 90% of your average weekly earnings for the next 33 weeks. In paternity leave, you will also get £172.48, or 90% of your average weekly earnings. But for part-time employees, it will adjust their pay based on their hours of work.
- Pensions and retirement plans: Employer contributions for pension or retirement savings plans may be lower compared to full-time earners. Your own contributions may be also lower if they are a percentage of your part-time pay. It lowers your pensions or retirement savings in the long run.
- Health insurance and other benefits: Health insurance, life insurance, and other benefits provided by your employer are frequently calculated as a percentage of your pay. So the amounts and coverage levels you receive may be lower than what full-time staff get. But sometimes, part-time employees didn’t get any health insurance and other benefits.
Conclusion
So there you have it, a real stick view of working part-time and enjoying Govt. benefits. If you want to enjoy actual benefits, talk to your employer and understand your benefits. Sometimes a few extra pounds from benefits can make a big difference in real life. A good work-life balance and financial security are important, no matter how many hours you put in each week.
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Disclaimer: All the information provide on this article only for educational purposes. We don’t guarantee every information in this article right. Please do your own research or consult your financial advisor before taking any financial decisions.
