Have the government done away with child tax credits?!?

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Had a nightmare day trying to apply for universal credit which has just replaced what would have been child tax credit in our area. We have savings of more than 16,000 (hard earned and saved house deposit!) but our household income is low. Am I right in thinking that child tax wasn't dependant on savings just income?? Yet You can't claim UC with savings of more than 16k. So, my query is, does this effectively mean ctc no longer exists? And how is that fair when people in some areas would still qualify for it? Are we really being penalised because we happen to live where we do when if we lived in the county next door we would still be able to claim child tax credits. So frustrated and confused. And advise much appreciated!

so when will it be rolled out full stop? do letters go out?

On the whole I think very large sums in savings should be taken into account when claiming tax credits. But an exception should be made for saving for a deposit on a house. Up till a reasonable amount. Assuming folk aren't saving for a mansion with a couple of million saved for the deposit. But no limit of savings is just crazy.

Well there is a limit, depending on interest. But because interest rates are so low at the moment you could save up more than 17k before it affects your claim under ctc.

Agree Vivien, there has to be a limit somewhere but in current times feel 16 thou is too low, I appreciate a magical figure to many - who have nothing but in current times with deposits so expensive etc, and uni fees etc, I think base figure should be raised so people can have a proper safety net.

Blowing : Different groups are being migrated across gradually ( otherwise it would end in chaos). Even a lot of welfare rights workers/ advisors etc don't seem to be able to keep up with the changes . I rang the DWP yesterday and was wrongly advised on a UC issue so even some DWP staff seem confused!
I'm not sure when it will be completely rolled out, the simple claims first then different groups. if you have previously claimed tax credits there will be some transitional protection. '
On another thread below I have tried to explain how the savings situation will be calculated on savings between £6k - £16k.

I wonder if spending savings issue is relevant on house improvements.

we desperately need new kitchen but have been holding off. Would we be accused of spending down or whatever you call it?

we were given money for a new kitchen by relative, now rather than inheritance but we waited as dh was applying for new jobs we hoped with extra salary could do more work on top of new kitchen ie extension. However DH job now looking v precarious - so we halted plans and held onto money in case he lost job - ( its under 10 grand) but now wonder if we should just get new kitchen>

Thanks Babyroobs we deff can't apply for tax credits in the normal way, I've checked and checked again! Well the weird thing is we have been able to set up an application for UC and I've even attended the interview this afternoon, despite adding all the info about our savings on our application. i then asked the advisor in the job centre about the savings issue and her immediate reaction was 'no you won't be entitled'. Then I bought up that the old CTC didn't take into account savings and that seemed to throw the whole staff into turmoil and not a single one knew whether our application could go any further!! The whole thing seems pretty chaotic tbh. the reason I'm so keen to know if it's a definite no is that they don't offer these 'interview appointments' out of 9-5 working hours and my husband works away in the week so would have to take holiday to attend the 5 min interview, a waste of time if it's a fruitless task. Maybe we should still try to go through with it and see what the final decision is but it seems like we are probably blocked from claiming yet if we'd tried to claim only a few weeks before hand we'd get CTC! Our area has literally just switched to UC. in hindsight I should have been more clued up....

Some counties have UC only for all new claims including where there are dependent children and also for lone parents. Our neighbouring one does.

I really can't figure this out at all iv tried to use the calculator and it's baffling . I get some tax credits as a lone parent on a a lowish income . Will I lose everything or will it be reassessed under the new system ?!?! It's just keeps going on about housing benefit etc which iv never got anyway

Hit the nail on the head...I've been on the phone to quite a few different dwp/CTC/UC advisors about it and not one knew the answer! Slightly concerning about the chaos that will ensue when the move everyone over. Also there are 2 different types of UC apparently?! I can't remember what the distinction is but one is more rigid to apply to than the other I think.

I think if you are already claiming it should affect what you get, it's just for brand new claims but don't quote me on it!

*shouldnt affect what you get

Ah right thanks I thought I'd read that too but there seems to be so much confusion !

I think the difficulty is that in areas of very high rental rates, people on low incomes rely on TC/UC to make up the gap in income. If they deprive themselves of a full quality of living to save a deposit to get on the housing ladder, so they can have lower outgoings with a mortgage and not be reliant on benefits, they are penalised by going over the savings threshold and then not being eligible for the UC in the first place, which means they can't afford to save for a deposit, and then they never get out the benefit system. Ideally, of course, people would say they should increase their earning potential by getting a better paid job, but not everyone can do that.

Yes it's for new claims in the case of our neighbouring county but afaik moving to a different address can trigger this being dealt with as a new claim if you were previously outside the area. Happened to a friend who did this (ie moved six miles up the road).

But she is also claiming housing element - don't know if that complicates things.

Ah right . Jeez it sound like its going to be a right mess untill it's all sorted !

Tbh if you are already in receipt of certain benefits I wouldn't worry as I think it switches over automatically and shouldn't change your payments but yes I think it will be a bit of a mess for a time unfortunately. Thanks for all the help and advice everyone!

Also in small print is you don't get UC if you own a house

Poisongirl Thais wrong here
Lougle If you are getting benefits to pay your rent you should not have enough income to save.

Surely if you have 16k you don't need financial assistance from the gov. No wonder this countries on it's knees with people expecting handouts the welfare system should be there to help the very poorest when they need it. And buying a house is a privilege not a right.

"Lougle If you are getting benefits to pay your rent you should not have enough income to save."

On the face of it, I agree. But if the assessment is that a family needs x amount to live on, and that is based on a notional quality of living, which includes, say, clothing, hair cuts, toiletries, groceries, fuel, household goods, etc., and a family chooses to keep to an extremely tight budget in order to save some money, which in any other circumstances would be seen as prudent and praiseworthy, why should it be seen as shameful for the benefit recipient? If they are only receiving what is assessed as right for them to live on, but they make it stretch by bulking out their meals with pulses, or turning the heating down and wearing extra layers, or growing long hair and skipping hair cuts, or using bicarb and lemon juice as cleaners instead of expensive products, or making clothes last years instead of months. If that creates a surplus of money that can be saved, they should be applauded.

Sorry but you can get UC if you own a house. You can even get specific payments to help you pay a mortgage. Owning a home is a privilege but I believe that being able to afford to live in your own country near the place you work when you work full time really should be a right. But my generations standards of living and what is a privilege not a right do seem to have been somewhat redefined. No home, no decent pensions, cost of living so much higher than average wages, you name it. With rents crippling where we live ( and that's not even a really expensive area like London) we would almost certainly have to claim housing benefit, taxpayers money straight into pockets of private landlords. As is often the case it Would be cheaper to pay a mortgage.The point we were making is it would be more beneficial to the treasury to help out people who are saving for a house whilst they were on low incomes ( hopefully not forever as the progress through their working lives) than pay housing benefits for the rest of their lives. As usual we would probably be better off if we hadn't worked, handnt saved and claimed all the benefits going. At least we might have a roof over our heads instead of having to live with my mum at the age of 28 with a 2 year old!! And before anyone criticises that having a child is a privilege you should afford not a right, my husband lost his well paid job through redundancy a month before she was born. We certainly didn't plan to be in this position!

Anyway whether you think it's right or wrong that people get child tax credit my gripe is that now my area has moved to UC we are blocked from claiming a benefit that if we lived in a neighbouring county we could get. You can't really have a post code lottery for benefits ' oh we'll pay half the country a state pension and not the other..' It simply isn't fair which ever angle you look at it and penialsies some families and not others.

The point we were making is it would be more beneficial to the treasury to help out people who are saving for a house whilst they were on low incomes

They do- its called help to buy