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!

Although not till after Nov 2019 if claimants have three or more children.

Naice - How do you know it will be much lower?

Is that because of the benefit cap?

For those discussing the issues re savings and whether some might hide their savings, this has always been an issue in the administration of other benefits. There is a good chance that hidden savings will be found, there have been data matching searches run by the dwp for years, looking for discrepancies between live benefit claims and undeclared accounts. Its a simple concept - you get a huge list of claimants with claims and bank accounts that are suspicious for any reason - could simply be that they're not on the claim. You then look to find out why the account wasn't declared, might be because it was simply unused and forgotten, might be because it contained large amounts of savings which were given to grandma for safekeeping before the claim was made. If it can be shown that this was done in order to deprive themselves of capital in order to claim benefits, they then face a prosecution for benefit fraud. It's not a simple shifting of money, its fraud. I would imagine that hmrc will have the same processes and access, and will be able to see fairly easily where claimants have had (taxable!) interest paying savings accounts historically too.

I just used the calculator and based on gross pay of £1665 it tells me that I wouldn't be eligible for anything apart from CB. I currently receive £50 a week CTC. Can that be correct? I'm in Scotland and have no idea when it changes here

But surely you will be protected by transitional protection if you are already on tax credits so will be no worse off ?

Protected for how long? DS is only 12. And under WTC you have to notify if your earning go up by £10 a week , don't you? If that was to happen, then that would be a change and I'd lose the £50, wouldn't I?

noitsnotme we would need to know whether you were in a couple or single, whether you had children and how many, whether you had childcare costs, how many hours you work, whether you need help with housing costs, and whether anyone in your family has a disability?

Single, 1 DS12, no childcare costs, no help with housing, and no disabilities. My gross monthly pay is £1665, but £1305 after deductions, pension and student loan. But I filled all that in, same as I would have on the tax credit calculator.

Oh, and 33 hours

No that kind of change is irrelevant.

Not sure whether when you are moved to UC you would be expected to look for full time work, perhaps that make a difference? Sorry I really don't know enough about it but £50 a week sounds a lot to lose.

Just checked and it's already started in my area for new claimants.

Student loan repayments aren't taken into account for UC, unfortunately. So you need to include that figure back in your pay for UC purposes. But leaving that aside, your situation looks like:

Single standard allowance £317.82
First Child Allowance £277.08
Total: £594.90

Your work allowance is £397. If your current net wage is £1305 (it isn't because we need to add your student loan payment back in), then you'll have 63% deducted from (£1305-£397), so £908.

£908 x 0.63 = £572.04

So, currently, without your student loan being added in, you'd be eligible for £22.86 per month, but once your student loan is added back in you almost certainly won't be eligible for UC. I'm sorry

As an aside, are you sure you are meant to be paying student loan repayments on your income? Unless you have a really old style student loan, repayments shouldn't be made until your income is a fair bit higher.

Lougle - As she is already getting tax credits, will she not be protected by transitional protection? if so how long for?

Thank you Lougle I also get £100 maintenance so that'll go against me too! I'm sure that my student loan (student in 2008, started working in 2008) was started paying back after I was earning about £15k? I'm on just under £20k now and been paying it for years. I'm pretty sure it's correct and it's only something like £22 a month.

Yes, thanks Babyroobs. Can you tell me that, roughly, Louble?

I hope so, babyroobs, I'll check and come back.

Not - I don't think child maintainence will be taken into consideration for UC. So you are safe there.