Page 4 | Universal credit savings

Jellywithyogurt · 2024-03-27T18:44:03+00:00

So I have well over 50k in savings. I'm not bragging, it's our house deposit fund for one day when we can afford to move out of council. We don't touch this money. We get tax credits and are about to move over to UC. Would I be unreasonable to not even apply. Since I have over 16k in savings. Am I getting it wrong? I am reading that we no longer qualify. Yabu - apply Yanbu - don't bother, you don't qualify for it anymore

Mummame2222 · 03/04/2024 17:01

Lougle · 03/04/2024 16:50

The bottom line is that you're always better off working than not working, and although renters get more support, they have nothing to show for it at the end of it all.

I agree!

Lougle · 03/04/2024 17:11

Mummame2222 · 03/04/2024 17:00

I could have been really unclear but what they are writing about is what was trying to say. The taper rate for those claiming Housing costs starts after £379 for those not claiming it starts after £651.

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Yes, it does. I think that the difficulty is the change from Tax Credits and the way it's all expressed.

For Tax Credits, there was a specified order that deductions were made from elements. When Tax Credits are reduced, you lose the main elements of Working Tax Credit first, then the childcare element of Working Tax Credit, and finally the child and disabled child elements of Child Tax Credit if applicable. So someone could say 'I don't get the working tax credit because my income is too high', or 'I only get help with half my childcare'.

With Universal Credit, it's all lumped in together. So if someone has rent of £900, and childcare of £1000, and their deductions due to income is £800, they could say 'I get 85% of my childcare paid, but only £100 of my rent.', or 'I get help with all of my rent but only £200 of my childcare.'

Both would be true, in a sense, but it doesn't give the complete picture.

KeinLiebeslied54321 · 03/04/2024 17:19

Jellywithyogurt · 27/03/2024 19:12

Thank you. I don't even get 174 a month in tax credits so I guess we're on the borderline already and it's bye bye to any support. It's small potato's but it all helps. We can survive without it though. Sounds like there are more hoops to jump through to even get UC and maybe it's just not worth the time and stress migrating over at all. I'll try to pick up some extra work instead I think.

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I think that's what the government hopes folk will do, sadly. I can relate though. Good luck on getting that house at some point.

Ruminate2much · 03/04/2024 19:21

LakieLady · 02/04/2024 21:26

I entirely agree about tenants' rights being appalling, and LLs doing very nicely out of the benefit system. I work in welfare rights, and rent is invariably the single biggest element in almost every UC claim I see.

And while it's equally true that owning a home increases wealth, for anyone who ends up needing to go into care, the house will end up paying for most of it. Those who don't own a property will have those costs covered by the taxpayer.

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Fair point. Overall I think home owners are in a better position; but I can see it isn't always the case.

Mummame2222 · 03/04/2024 20:16

Lougle · 03/04/2024 17:11

Yes, it does. I think that the difficulty is the change from Tax Credits and the way it's all expressed.

For Tax Credits, there was a specified order that deductions were made from elements. When Tax Credits are reduced, you lose the main elements of Working Tax Credit first, then the childcare element of Working Tax Credit, and finally the child and disabled child elements of Child Tax Credit if applicable. So someone could say 'I don't get the working tax credit because my income is too high', or 'I only get help with half my childcare'.

With Universal Credit, it's all lumped in together. So if someone has rent of £900, and childcare of £1000, and their deductions due to income is £800, they could say 'I get 85% of my childcare paid, but only £100 of my rent.', or 'I get help with all of my rent but only £200 of my childcare.'

Both would be true, in a sense, but it doesn't give the complete picture.

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Ok, I don’t know anything about TC, it’s been years since I’ve been on them and was referring to UC only. TC was a much fairer system imo.