Tax credits changing over to UC

[ADJ1151]

Not really an aibu but posting here for traffic hoping someone will help.

Can please someone enlighten me about what will happen when our tax credits claim changes over to UC? Will it be any different? I’ve heard so many universal credit horror stories.

Based on our earnings we get around £15 a week tax credits but we receive child tax credits of around £64 for our son who receives DLA! So just under £80 a week total. We don’t receive any other benefits apart from tax credits, DLA for our son and child benefit.

You wont get anything for five weeks your on a low amount so I cant see as you wont manage for five weeks

You will still get dla and child benefit everything else (except carers allowance and pip) is lumped into one monthly payment

I thought the rollout had been delayed now until 2024?

@thekatydids
They have delayed rolling it out as in they aren't actively changing people over however if you move or change job or have any other significant change of circumstance you will be moved over

Oh...that's not good. I'm job hunting now so if I get a job I'll be moved onto UC? I don't have the money to wait 5 weeks as CTC is my only income.

If you’re not working and your child receives middle or higher rate care you can claim carers allowance.

Some people, especially with at least one person working, are better off on collecting universal credit. There’s a really good group in FB called Universal Credit Essentials that have a very accurate calculator,

you say CTC is your only income, do you and your DH not share finances? UC is a joint benefit so will be based on household income.

Ring tax credits, I was told that when I do get a job only a separation would force a new claim & UC so hopefully you will be the same.

We get a teeny amount of tax credits, like £15 a month. I think it’s just a repayment. I won’t bother applying for it on UC unless our circumstances change!

@thekatydids
Yes you will I got caught with it when my company got bought over they didn't even change the shop name just the owner and that was enough.
I suggest trying to pay a little extra on your bills each week/month and if possible buy a couple of extra cupboard items each shop it will help when the change happens

you say CTC is your only income, do you and your DH not share finances? UC is a joint benefit so will be based on household income.

There is no DH.

thekaty my friend was moved over when she changed job.

You wait upto five weeks for them to properly process your payments. But meanwhile you apply and receive upto a set amount to cover your outgoings. This is then taken out at a set monthly rate, until it is paid back.

Some people are better off on Universal Credit. It's worth doing a benefit calculation using Turn2Us or Entitledto. Or ask Citizens Advice to do it for you.

If and when you claim UC there is a 5 week wait for the first payment but you can request an advance payment to tide you over. If you are getting Housing Benefit, it will continue for 2 weeks after you claim UC.

Loads of info here
www.citizensadvice.org.uk/benefits/universal-credit/

I'll have a look, thanks. I don't get HB.

Seems a bit hit and miss with the job thing....I rang and asked specific questions as looking for work and new home(within same area I’m in now) was told that no a move won’t force UC nor will starting a job, only ended a TC claim would or a separation. 🤷🏻‍♀️

Seems to be different for different areas. I'm moving house in a few months and the advisor told me I won't be moved over to UC, all I need to do is update my address on my government gateway account and nothing will change.

Unfortunately I’ve been told the disability premium is significantly less on UC than it is on tax credits.

We have two children on DLA so I’m hoping to avoid switching as long as possible!

There is still a premium for disabled children.
It's just that there is no premium for disabled adults.
Seriously do the calculation, you might be surprised to find you'd be better off (or the same).

Right, just looked it up....info can be found on entitled to website, there are tables showing changes of circumstances and what happens, so my advisor was right, I will not be moved to UC if I move as I don’t claim hospusing benefit and it’s not my first tenancy. Reading the box to do with income they are also right about that- I would have a choice to remain on Tc or chose to move to uc.

www.entitledto.co.uk/help/changes_that_trigger_Universal_Credit

@SinkGirl
www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/check-how-much-universal-credit-youll-get/#h-if-any-of-your-children-are-disabled

There is still a premium for disabled children but I’m sure it’s lower - can’t find the figures, but I’m sure when I checked before it was less than on tax credits

Sorry yes I think I misread your post and missed that you said the premium is lower

Found it. Disabled child premium:

UC = £126.11/month (£1513.32/year)

www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/check-how-much-universal-credit-youll-get/#h-if-any-of-your-children-are-disabled

CTC = £3355/year (£279.58/month)

www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/working-and-child-tax-credits/working-and-child-tax-credits/child-tax-credits-how-much-you-can-get/#h-if-your-child-is-disabled

I didn't know there was such a big difference, that's awful

(That's the standard child disability premium - there is not such a difference with the "severe" disability premium, ie if your child is on higher rate care.)

It’s absolutely disgusting isn’t it? I knew it was significantly less but that’s appalling.

I guess if you’re on multiple benefits that difference may be balanced out elsewhere but we only get a small amount of CTC, the disability premiums and DLA so we would lose about £3600 a year.