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Original poster

Universal credit, furlough, working tax credit confusion

33 replies

Hitchyhero · 01/07/2020 14:35

So my partner became a taxi driver late last year, but because of covid he stopped as he would be considered high risk.

He wasn't entitled to furlough pay because he recently became self employed. We applied for universal credit and based on both of our income he was entitled to a whopping £50 per month. Pathetic to say the last as my full time wage is well below the national average.

However, we have a pretty low mortgage and outgoings, and I've been thinking about both of one of us working part time in the next few years to look after our adopted son . I've just spoken to a friend who is a stay at home mum and she said there's a calc online to work out how much working tax credits we would get if one or both of us works part time. She filled it all in for me.

Have to say, I'm fuming at the amount it came back with. Not because it was too low..... But too high... Especially considering how much 'covid' pay my husband has been getting.

Currently - my earnings is £1300 a month + £50 from universal credit for covid = £1350pm

But if we both worked part time and earned £750 each we would get £217 in child tax credits and £455 in working tax credits bringing in total = £2172

I'm confused and angry by these figures if they are correct. It would currently work out better for me to drop my hours and get near double the it would for me to work full time and get a measly £50 in universal credit

OP posts:

ArnoldBee · 01/07/2020 14:38

You cant get tax credits as you are now in the UC lobster pot. Once you're on UC you cant claim TC.

Original poster

Hitchyhero · 01/07/2020 14:43

Both me and my husband have never ever used Universal credit or working tax credits.... So you'll have to excuse my ignorance.

Is universal credit generally lower than tax credits. I'm not planning on relying on any of these services, but if we both went part time and applied UC would it be far less than those figures above?

OP posts:

thereplycamefromanchorage · 01/07/2020 14:49

You can't get tax credits as a new applicant - the only option would be to claim UC. Tax credits are only paid to people who were already getting them. UC is calculated a different way, so yes it might be different to how much you would have received under tax credits - but that is not an option.

Waxonwaxoff0 · 01/07/2020 14:49

That seems odd. I am a single parent earning £750pm and I get less tax credits than that.

Waxonwaxoff0 · 01/07/2020 14:53

Did your friend use the UC calculator? I have heard that Universal Credit is apparently more generous to working couples than to working single parents.

Original poster

Hitchyhero · 01/07/2020 15:02

I think she must have used a tax credit calc. She and I were not aware that UC has overtaken everything.

OP posts:

DisobedientHamster · 01/07/2020 15:13

Yeah, tax credits are legacy benefits and everyone will be migrated onto UC in the next couple of years.

Waxonwaxoff0 · 01/07/2020 15:18

Yes, you can't make a new tax credits claim. I'm still on tax credits because I've been on them for 6 years with no change in circumstances.

Furloughb · 01/07/2020 15:22

Universal credit actually tends to pay better than legacy benefits.
It looks to me like you’ve included that you have a child in the second calculation but not the first?

Furloughb · 01/07/2020 15:23

Are you currently on UC getting the £50 a week? If so, check on the ‘payments’ section for whether you have a child included in the calculation.

Original poster

Hitchyhero · 01/07/2020 15:29

I've definatly put all details in my current claim correctly. I've put I have a child and I've reported my earnings. They even know the exact amount each month to the penny either by contacting my workplace or going through HMRC.

Like I said... I personally earn less than the average to I was too suprised at how little he was entitled to.

OP posts:

Original poster

Hitchyhero · 01/07/2020 15:29

@Furloughb

Definatly £50 a month

OP posts:

whatactuallyisthis · 01/07/2020 15:35

@Furloughb

Universal credit actually tends to pay better than legacy benefits. It looks to me like you’ve included that you have a child in the second calculation but not the first?

No it doesn't!! Many, many more people lose out on UC than gain. Can post sources if you don't believe me.

Furloughb · 01/07/2020 15:36

Yes it’s real time data so it comes straight through from HMRC but your figures don’t seem right OP.

Are you in rented accommodation and have you provided proof of everything?

They disregard The first £292.00 of your take-home pay and then every £1.00 you earn in take-home pay over this amount reduces your Universal Credit by 63 pence. The standard allowance for a couple is around £600, child around £250 and then they account for whatever your rent is too. So if your rent is say £500 per month, they work it out as outgoings - £1350. Take home pay £1300 minus £292 = £1008 x 0.63 = £698.04 deducted leaving a deficit of around £652 per month that you should be receiving?

Obviously depends on your rent but your amounts don’t add up.

Cooper88 · 01/07/2020 15:37

There is a Facebook group called universal credit essentials it may well be worth going on there as they can look at your statement etc and see why it is so.low.

Waxonwaxoff0 · 01/07/2020 15:38

@Furloughb it doesn't for single parents, I'll be worse off by £20 a week when I get switched over. It pays better for couples though apparently.

Furloughb · 01/07/2020 15:42

Anyway that was long winded but just give a quick check over the payments page to make sure you’ve definitely got everything included in the calculation that you should have. It also goes via take home pay rather than gross so should show a lower amount there too. Sorry to hear about your husbands job though. Hope things improve!

ToothFairyNemesis · 01/07/2020 15:48

Do you rent or have a mortgage?

ToothFairyNemesis · 01/07/2020 15:48

@Waxonwaxoff0 I'll be worse off by £20 a week when I get switched over. you won’t be due to TP.

Original poster

Hitchyhero · 01/07/2020 15:51

I don't rent... My mortgage is around £370 a month

OP posts:

ToothFairyNemesis · 01/07/2020 15:59

Ok, that gives you a higher work allowance, double check your UC entitlement here
www.uceplus.co.uk/how-much-will-my-payment-be.html
They also have a Facebook group.

YaWeeSkitter · 01/07/2020 16:05

From what you have put in your OP the sums dont add up.
Universal credit have set amounts for certain circumstances.

Couple, one or both aged 25 or over = £594.04
1 child born BEFORE 6th April 2017 =the higher rate of £281.25

With a child and no housing and take home pay of £1300.00 the Deduction for take home pay:= £ 496.44

I have Assumed that your adopted son was born before April 2017.
This is not taking into account the possibility that your son has a disability of some sort and one of you are his carer.

Universal credit works on an assessment period . It will take the amount of earnings received for the household within the assessment period. So you may be using the wrong earnings for the latest payment. Check again when you were paid as even 1 day out can change the whole calculation.

AldiAisleofCrap · 01/07/2020 16:13

@Hitchyhero are you sure you have listed your child correctly as a dependent?

Original poster

Hitchyhero · 01/07/2020 16:26

My child was born 2018. I have contacted UC as we do seem to be getting minimal amount

OP posts:

Bionical89 · 01/07/2020 16:43

She has a mortgage, it says in the OP that she does

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