In a stark illustration of the financial struggles facing many families, a single mother of three living in a village in Fermanagh is left with just £42.35 each month after covering her essential expenses, despite working part-time and receiving Universal Credit. 

Sharing her story on the condition of anonymity, the mother revealed her how total monthly income is £2311.41, which includes:

  • Earnings from work: £1388.05
  • Discretionary Housing Payment £86.87
  • Universal Credit (UC) Entitlement: £836.49, comprising:
  •  Single standard allowance: £393.45
  •  Housing element (for 3 bedrooms): £492.92
  • Two child elements: £575.84
  • Deduction for wages and work allowance: -£488.85
  • Transitional Protection Payment from Move to UC: £221.1

Her essential monthly expenses total £2269.06, including:

  • Rent: £750
  • Car hire purchase: £210
  • Car tax: £25
  • Car insurance: £55
  • Broadband: £37.50
  •  Phone: £50
  • Contents home insurance: £33.37
  •  Diesel for work: £216.67
  •  Parking for work: £48.53
  •  School dinners: £56.33
  • Nursery school food subscription: £30
  •  Childcare (one day for two children): £151.66
  • Food: £520
  • Electric: £60
  • Oil: £75 

The remaining £42.35 is all she has for emergencies and other unforeseen costs, underscoring the precarious nature of her financial situation.

Samantha Gallagher, the Assistant Manager and Welfare Rights Specialist with Community Advice Fermanagh provided this newspaper with this real-life example of a young family living within the two-child benefit limit and working.

Ms. Gallagher said: “We need to consider the narrative around social security. This lady works as a carer and she is still struggling to get by. Social security is a top-up for her because her income is legitimately low.

“Can we really say the basic essentials are met here? I don’t think we can.
“If she was entitled to three child elements instead of just 2, she would have an additional £287.92 per month and this would make such a difference in her life.

Describing a mother who is careful with her money, Ms. Gallagher said: “She advises if there were more affordable child care options and more job opportunities, she could consider more hours, but UC does not take that into account- the computer effectively says no to this family and leaves them struggling.”

Painting a stark picture of the current realities of universal credit and the two-child limit, Ms. Gallagher said: The mother “manages her money well, she is not in debt, she batch cooks and makes the most of her limited budget but she is stressed to the limit to the point her mental health is impacted.

“She tells me that she knows it shows in her personality every day as she tries to go to work as a carer but feels constantly stressed and worried in case of an emergency bill or the next school trip. She tells me she had to use the food bank and rely on discretionary support in March this year because the alternator went on her car and she relies on her car to get to work and she describes it as a soul-destroying experience.

“She also describes only using oil for one hour in the evenings and then layering up the rest of the time in the winter months.”

Communities Minister Gordon Lyons has said "financial constraints" could affect offsetting the impact of the two-child limit. 
Minister Lyons has stated that officials are finalising updates on the estimated costs for all recommendations from the Independent Advisory Panel Report on welfare mitigations, including those addressing the Universal Credit two-child limit.
This issue is likely to be a significant concern in Fermanagh, where families have already spoken of being impacted by such financial constraints. 
"Once this cost assessment is complete, further details will be shared with the Executive and the Committee for Communities," said Minister Lyons.
He emphasised that any future mitigation package will need to be considered within the current financial constraints to ensure budget sustainability.