Question about universal credit

[purpleme12]

I will be applying for universal credit. I'm on tax credits.

I know that you get the transitional protection so you're not paid less.
But if you wanted to could you choose not to have that transitional protection? And just have what UC would pay you?
Do they tell you what you'd get on UC? And then tell you what you're actually getting because you've been on tax credits?

Also what questions do you have to answer?
Do you have to show them your bank statements?
I am kind of expecting to perhaps show them how much is in my bank but I'd just rather not share what I spend my money on 🤣

Placemarking

Good post op I’ve been wondering those too, am worried I’m going to be worse off and really struggle

If you voluntarily apply for cut then you do not get transitional protection. You need to wait for them to migrate you over.

I know I need to wait. It is my time to migrate.
But my question was can you opt out of the transitional protection?

You can opt out of transitional protection by not waiting for them to migrate you, just doing it yourself.

They didn’t ask me for bank statements but that was during covid and they are hot on it all now, so I would assume yes.

Transitional protection doesn’t always mean you’ll get the same amount, because with UC your wages will reduce your payments. So even if your UC amount is the same as TC before deductions you could end up with a lot less.

It's my time to migrate anyway now.

I'm confused though I thought everyone got the protection so that as first, at least, everyone got the same amount as on tax credits, even if they'd be entitled to less on universal credit?

Is this completely wrong?

No so say you get £1000 on tax credits, and your award BEFORE deductions on UC will be £1000.

However, because they deduct £0.55 per £1 earned of wages you will have that deducted from your payment.

If you claim housing your total earnings before deductions will be £379. Every pound after that 55p is removed. Without housing element this rises to £631.

So say your award is £1000 the same as your tax credits you’ll actually only receive £659.

Hope that makes sense!

I am confused, got my migration notice today and went on to entitled to, and I would be better off under universal credit, the only worrying thing for me is I work 37 hours a week and my husband is self employed and due to covid and cost of living he has lost 2 contracts, so not sure if they will start hounding him to look for more work, he is 53, with heart issues, kidney stones, diabetes and spinal issues, but not eligible for any disability benefits.

Forgot to say he works 2.5 hours a week

@Tink51971 he should qualify for LCW minimum. When you move over to UC if you can get his dr to write sick notes for him this will trigger an LCW and LCWRA assessment.

Oh right honestly I don't really understand.

If you are migrated to Universal Credit because Tax Credits have told you your award is terminating and given you a code for UC then you'll be entitled to transitional protection (TP). TP means an extra element is added to your UC award so you're not worse off on UC.

Most people who get a TP are probably those with savings over £16,000 which would normally disbar them from UC or those getting a Premium in legacy benefits which is not replicated in UC. The rules are however complicated and there are differences between how DWP are interpreting the relevant regs and the interpretation put on them by advice bodies such as Citizens Advice.

It's not clear to my why, if one were entitled to a TA, you would want to refuse it.

So far as I can see there's not much consistency over what people are asked to produce on the way of bank statements (or ID documents) so it's difficult to call.

If I'm on tax credits and I apply for universal credit this month, will they still look at if I've been overpaid tax credits at the end of this tax year? Or will it be paid ok because I'll be on universal credit?

And with childcare, will that just be done realtime on universal credit now, submitting invoices?

I think most people in work and earning are better off on UC than on Tax Credits though that's relatively recent following the jacking up of the work allowances and reduction in the taper rate.

When you apply for Universal Credit you Tax Credits claim is closed effective the day before UC is claimed. HMRC will do what they always do when a claim is closed and do a check based on earnings to date. If there's an overpayment, for example because you've earned significantly more than in the previous year then they'll ask you to pay it back either directly or my adjusting your tax code.

Does anyone know what happens if you migrate but aren't eligible for uc? Do you still get the same as you would ctc for a year if you're supposedly protected?

So if a apply for universal credit this month, the tax credit people won't wait till next year to check if I've been overpaid, they'll check it this month?

Just realised why I am better off on universal credit, with tax credits I never told them I pay into a works pension, and universal credit ask if you do, oh well saved the government some money 😂

IIRC, they'll calculate your tax credits to the date they stopped.

So, with TC could you have 16k in savings, but you can only have 6k if on UC?

There's no savings limit with tax credits

Thank you to everyone who's answered my questions.
The thing about how the transitional protection works is very confusing. I guess I just got to apply and whatever happens happens. I think it's just the not knowing what's going on with it being new to me I don't like.

I do have another point.
I actually think that my first assessment period for universal credit might mean that I won't be eligible for universal credit possibly??
This is because I'll be getting two lots of bonus on top of my wage because of an error last month with what was supposed to be last month's bonus.
But I'm not normally paid that much.
Will they take that on board? Do I have to explain this to them?

I applied this week, transferring over from TC and they didn't ask for bank statements

What was the process? I mean what information have you had to give so far?

There's still plenty of time for them to ask !