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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Will my tax credits stop as soon as I apply for universals credit?

26 replies

Katieholmesxx · 26/11/2018 20:24

I don’t know If im writing this in the right place, but I’m moving post code where
I have to apply for universal credit rather than universal credit, I’m current claiming working tax credit and child tax credit, the question basically is if I apply for universal credit will my tax credits stop straight away? I need to apply ASAP but I’m scared to have no money for Christmas as all’s I will have is my wages which will just about cover bills! can anyone help I’ve searched the internet and no answer

OP posts:
MyDcAreMarvel · 26/11/2018 20:25

Yes they will why are you applying for UC?

WooYa · 26/11/2018 20:26

Yeah it will stop and UC can take at least 5 weeks to sort out

MyDcAreMarvel · 26/11/2018 20:27

It’s only if you make a new claim that you would be moved into six you can stay on tax credits.

MyDcAreMarvel · 26/11/2018 20:27

On to Uc not six!

naicepineapple · 26/11/2018 20:28

Yes they will stop. As you're moving, its a change of circumstance and triggers the need to apply for UC. It takes 5 weeks to get your money. Ask for an advance at the job centre.

naicepineapple · 26/11/2018 20:29

@MyDcAreMarvel she's moving house, change of circumstance therefore she needs to apply for uc.

MyDcAreMarvel · 26/11/2018 20:32

No only if she is claiming housing benefit otherwise you can stay on Tax credits.

MyDcAreMarvel · 26/11/2018 20:34

Op - if you are not claiming housing benefit DO NOT claim UC
If you are claiming housing benefit work out how much worse off you would be under UC if you only receive part housing benefit you may be better paying all the rent yourself.

Original poster
Katieholmesxx · 26/11/2018 20:34

I have to Claim housing benefit which I’ve never claimed before... I’m scared to apply for it in case tax credits stop instantly

OP posts:
Original poster
Katieholmesxx · 26/11/2018 20:36

I only work 20 hours but actually am being made redundant on the 5th of December aswell so was going to get 2 months wages at once, but now they’re going to pay me it over 2 months and I will have to get a job straight away! The problem is my job now fits perfect around nursery at its 9-1 but I doubt I will ever find hours like this again

OP posts:
MissMalice · 26/11/2018 20:36

Can you go without housing benefit until January and apply for UC then?

Original poster
Katieholmesxx · 26/11/2018 20:37

I’ve worked out I will get like £270 a month more but have to pay rent it’s so confusing to me

OP posts:
MyDcAreMarvel · 26/11/2018 20:37

Your tax credits will stop instantly like a pp says could you wait till January as you wouldn’t get UC for five weeks.

Original poster
Katieholmesxx · 26/11/2018 20:37

My first rent is due 10th January as I’ve had to pay a moth upfront and deposit which I move in 10th December it’s bad timing

OP posts:
Original poster
Katieholmesxx · 26/11/2018 20:38

I couldn’t really wait unless I used the money I got from redundancy but then it’s hoping I find a new job that will fit the hours

OP posts:
Original poster
Katieholmesxx · 26/11/2018 20:40

I can’t believe they stop instantly how have people coped on it so far as soon as I found out today I have to apply for it my head has been baffled

OP posts:
Babyroobs · 26/11/2018 20:50

People can get an advance on their first payment which can be up to 100% of their first payment, then it is paid back over 6 or 12 months.

MyDcAreMarvel · 26/11/2018 20:50

People don’t cope they go to food banks and struggle massively. I believe you can get a loan from UC. Also sorry to stress you out further but you need to pay any childcare costs yourself and claim them back a month later.

Original poster
Katieholmesxx · 26/11/2018 20:53

Luckily my daughter get 30 hours free nursery now so that’s enough will just have to pay for holidays, , is there any solution or am I just gonna have to apply and take the bane of it

OP posts:
Original poster
Katieholmesxx · 26/11/2018 20:54

Do you get your first month rent back paid like housing benefit or will I just have to find a way to pay my nanny back another way

OP posts:
naicepineapple · 26/11/2018 20:56

Ask for an advance and pay it back over 12 months

Babyroobs · 26/11/2018 20:56

I wouldn't go onto Uc unless you absolutely have to and there is a lot of poor advice given out by HMRC etc which is often wrong. However many people are ok on it, you tend to just read the bad stories in the press. It hits people hardest when they get paid 4 weekly or early and two paydays fall in the assessment period. Also when people have deductions coming off their payments so they struggle with what they have to live on.

Surfskatefamily · 26/11/2018 20:56

In the 5 week wait for your first payment you can request an advance and they wont turn you down for a reasonable amount. Its really not as scary as the media has you think. I moved onto it in may and find it simple and easy

Original poster
Katieholmesxx · 26/11/2018 21:15

Okay thanks everyone so upset that tax credits stop instantly does anyone know why they even changed it

OP posts:
Babyroobs · 26/11/2018 21:51

If you get housing benefit you can get a run on of that for 2 weeks, otherwise you just have to take the advance and pay it back. They changed the system to simplify the benefit system ( although some would argue that this is more complex) and allegedly to make work pay ! there were problems with the tax credit system it was worked out over the year and wasn't flexible and some people ended up with big under or overpayments which could take years for HMRC to recover. Uc is based more on real time so if you earn more in your assessment period you get less UC and if you earn less you get more UC.