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

[Pop24]

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!

This has me really confused too.

Can someone please tell me, if my DH is made redundant and we have over 16k in the bank then will he be entitled to the JSA part of Universal Credit ? I don't understand it now that it's all pooled into one thing. So confusing. This is my worry as DH has been made redundant twice in the last 6 years. We don't claim anything atm apart from child benefit

Savings above 16k make you completely ineligible for any type of Universal Credit

Dreamjob - I think of he has paid NI contributions he will get the 6 months without looking at savings etc just as it is now.

But dreamjob I think JSA is still separate, if its contributions based. The gov.uk page on JSA doesn't make much sense as it still says that traditional JSA won't be dependent on savings but in the same breath it says that it's being replaced by UC and you can't get that if you have more than 16k savings?? Surely that's completely contradictory. im sensing the whole thing is a bit of a shambles to be honest! But yes I'd be worried too now about OH losing his job again!

www.gov.uk/jobseekers-allowance/what-type-you-get

I was just about to say the same as Pop24. It seems that you will only be able to apply if you ARE eligible for UC. Which you are not if above 16k savings.

I don't see why you should be eligible for financial help when you have 17k in the bank.

basically it's now a postcode lottery as to whether you can claim benefits not affected by savings. Also the upper earnings limit for CTC is 40 to 55K!! so people who claimed before UC came in are entitled to CTC even on very high salaries, whilst because all our wealth is an arbitrary amount of cash savings we don't get it on an income less than half this. How is this fair? And will people who currently get CTC and have savings (must be quite a lot of families) be made to switch to UC and therefor lose the payments altogether?

I think JSA is still separate, if its contributions based

Which has always been the case. It isn't done on income. It has always been that after the 6 months of contribution based that any savings or partners income will come into it.

Once UC is fully rolled out and people have migrated from tax credits on to universal credit, you'll also be subject to the same conditionality as everyone else. So you will have to attend work focussed interviews at the jobcentre (which will open longer hours including saturdays) and be expected to show evidence that you're trying to increase your household income.

I thought the people who are already on tax credits who will eventually swap to UC will get transitional protection thing going on. Which I thought that meant they aren't subject to all the rules new applicants are like it wouldn't matter if they have a gazillion in the bank.

UC is a shower of shite all around.

UC, in theory and as initially planned is actually an excellent idea. One claim and assessment, on-line returns by employers allowing monthly changes to benefits dependent on earnings, so encouraging short-term/casual work for people without interrupting benefit payments. Always better off working than not.
Implementation has not been fully aligned with this, for a number of reasons.
Lougle In your example, the money a family need to live on has obviously been calculated too high. For those who can work, benefits should not provide a comfortable life.

Dreamjob trans protection is only valid until there is a change of circumstances such as change of job/hours/responsibilities/role, house move, new child etc etc.

Does a child leaving education or turning 19 when CTC ends count as a change in circumstances?

caroldecker "Lougle In your example, the money a family need to live on has obviously been calculated too high. For those who can work, benefits should not provide a comfortable life."

Most tax credit recipients are in work but on a low income and have been deemed to earn too little money to support their family without state support. If they are already working full time, but a full time wage does not give enough money to support a family, it isn't their fault. In a capitalist society where wages are set on the basis of supply and demand, not everyone can have the job that commands a very high salary due to its very high level of skill and scarce supply of workforce. Equally, no matter how good you are as a cleaner, you won't get paid very much. But as a society, we will always need the cleaners, the Porters, the waitresses, the refuse collectors, the shop assistants, etc., and we will need them in all areas of the country, even where the cost of living is extremely high.

Dreamjob yes I think that will count as a change in circumstance.

Fantastic posts from Lougle

Dream job no that specific change in circumstances will not affect transitional protection.
Could posters please not guess answers to questions relating to UC. It is better to say I have no idea than to cause stress however unintentional.

Seven - As you seem to know a lot about UC can you answer Op's original question as to why she can't claim? Is it because of the savings over £16k ?

Seven can you please post some up to date links so people can check and keep note of them?

universal-benefit-calculator.co.uk/universalcredit

The calculator is for UC, and if you play around with figures (i.e put savings at over 16,000) then it shows entitlement to UC at £0.

I think people just need to remember that if you are on any of the 'legacy' benefits already then you will have some transitional protection with regards to savings . If you are making a new claim for UC then if you have savings over £16k you won't be able to claim.
It has always been the case for benefits like Income support and housing benefit that you couldn't get them if you had over £16k in savings but now that UC incorporates old tax credits as well, the savings limit will apply to that as well.

Thank you gluteus, I get annoyed by the assumption that if those low-income people just worked a bit harder they could improve their circumstances. But what people don't realise is that the way the system is set up, the marginal rate of deduction is so incredibly high that you almost can't work your way out of it. I get Tax Credits at the moment and this year they said we have an overpayment of £1500 due to a glitch where my updated earnings weren't recorded - I couldn't prove I've updated them because it was done online and you only get a summary confirmation, not a breakdown of changes. I considered doing overtime to clear the overpayment because I am lucky enough that I can do overtime for £30 per hour as I have a specialist skill. So in theory 70 odd hours of overtime would clear the debt after tax, NI, etc. But when I actually day down and worked it out, I realised that the act of earning that money would create a further overpayment, so not only did I need to deduct my tax (20%) NI (12%), pension (7.1%) and student loan (9%) from it, but on top of that 41p Tax Credit withdrawal rate, giving a deduction of over 80p in every £1.

So that turns my £30 ph into about £3.30 ph after deductions, which means that in real terms, if I want to pay off the overpayment, I have to work 500 hours, which is crazy, and even if I could would result in my Tax Credits being stopped anyway. And that's with being able to earn £30 ph for overtime (my usual wage is nowhere near as good).

Bloody hell.

It's very clear to me.

Your universal tax credits will not be affected by savings under £6k.
Between £6k-£16k your entitlement will be reduced.

Over £16k nothing

Universal credits are slowly being rolled out over the country.

If you already get tax credits, you will be protected and remain on dxotsoronf entitlement. However, of you make a new claim or change to existing claim then you will immediately revert to UC.

And that's about it!