Universal Credit

[lucymcd2295]

Hey..

Do any mums on here claim for universal credit? Looking for some advice :(

I am going to be downing my hours from 37.5 hours per week to 16 hours after Christmas.. I phoned tax credits and got told to apply for universal credit and that my tax credits wouldn't change from what they are.

Do universal credit take into consideration what you earned the previous year, how does it work when I'll be earning less and still having to pay rent on no money!

Thanks x

When my income was dramatically different they based the current year on an estimate. I believe they do this if your income falls or rises above a certain amount but you have to ask to base it on an estimate as it will be massively different

If you move to universal credit then I think it replaces tax credits so you wouldn't get both. Why are your hours changing?

I will be dropping about £10,000 a year but when I phoned they said my tax credits wouldn't change and I'd still get the same as I was when working 37.5 hours a week which I don't get im so stressed! There isn't enough work and hours got cut. X

If you’re in a full service UC area then reporting a change in circumstances to tax credits may trigger a move over to UC.

www.entitledto.co.uk/help/changes_that_trigger_Universal_Credit

I would seek some advice from Citizens Advice Bureau or similar about your options as once you move over to UC (which will eventually replace all Tax Credits claims) you cannot switch back.

I was led to believe that if you are getting TC and nothing changes when you move over to UC you are covered to transitional protection but that's if nothing changes. You hours are changing by alot so naturally your award will have to changed because your tax credits would of had to be altered. Is a reduction in hours and trigger for you to move over.
Its worth getting some advice as all calculators suggest if I was on UC is would be getting signicantly less which is why I pray nothing changes to trigger a move

Sorry for typos stupid phone

It's because it's a mid year change. You can stay on TC, a change in income won't trigger a change, but your claim won't be reassessed until April. You may be one of the few better off on UC, but you need a calculation from CAB etc to confirm if it will be beneficial to you.

I was led to believe that if you are getting TC and nothing changes when you move over to UC you are covered to transitional protection but that's if nothing changes

This will only happen when managed migrations begin, which will be at next year at the very earliest. Any changes currently will not attract transitional protection.

Who should I contact regarding this?

Citizens advice?

I don't know if I should just contact UC when my hours change and leave TC because I'm getting £502 a month wage then 248 tax credits, that's working & child together.

I need to pay bills and rent off of this which isn't doable.

Thanks everyone x

Yes, CAB or a local advice centre. Please don't do anything until you've spoken to them, if you change to UC now you won't see a penny until mid January.

Ok great thanks for your help

Much appreciated I'll look into this tomorrow x

If your wage changes significantly in year you can continue on tax credits but it has to change by more than £2500 for them to change it- since there's only 3 months before the new tax year it may be the case that your wage change isn't significant enough for them to account for it before April. Keeping the same claim but changing hours/ wage should not trigger a UC claim. However, if you will need to claim some type of help towards housing costs and you don't already have a Housing Benefit claim, this will mean you have to claim UC housing element and therefore move to UC in general. Your tax credits stop when you claim, there is a 4 week assessment of earnings period when you claim, so if you do have to claim UC wait until you have received your last big wage before claiming otherwise your first payment will reduce since you have higher earnings during the assessment period. If you already get TCs and HB you should be able to avoid claiming UC but do check if you would be better off claiming it!

I wouldn't be able to claim universal credit just now as they require payslips from me with evidence of the 16hours which doesn't start until January 1st. So should I claim then? This full situation is stressful. What tax credits is giving me for my 16 hours I can't live off that at all so I don't know if I'm better claiming UC or not. I know it does take weeks to sort out right enough so I'll need to keep money by for my rent and bills.

I presume you are needing to claim Uc because your income is dropping and you need help with rent and you cannot make a new claim for Housing benefit??

Uc will look at previous earnings for the past 12 months but only to establish whether you are exempt form the benefit cap. Otherwise Uc is based on real time earnings rather than what you earn over the year.

You also need to be careful dropping to just 16 hours without a good reason. If you are a lone parent with a child under 5 then it should be ok but if your children are older then there may be an expectation that you will work more hours.

My daughter is 5 and I do struggle with childcare over holidays .. I don't have any help with childcare family wise I'm on my own with only my mum. Do universal credit ask for reasons as to why you're dropping hours?

The expectation is that when your child is 5 you will work 25 hours a week, however if you are earning above a certain amount then they may leave you alone . UC pay up to 85% of childcare costs which is actually better than tax credits.

I don't think the advice from tax credits sounds right. You are only decreasing your earnings which shouldn't trigger a change to UC. However, if you apply for UC, even in error, you can NOT go back to claiming tax credits. So get some advice and be absolutely sure you HAVE to claim UC before making an application.

Do you currently get housing benefit?

Are you reducing your hours because if a lack of childcare?

I don't claim housing benefit.
Yeah that as well .. I'm struggling with childcare as I have no one for my little girl during summer and all the holidays or anyone to pick her up from school

When working full time I was 'earning too much' for childcare .. and I was having to pay £700 for a childminder

We have a nursery here that takes children age 0-11.

My DC go every school holiday including all summer as I have no help.

Its open 51 weeks a year 08.00-18.00

Its £28 a day and I get 70% of that payed for by T.Credits, which I am extremely grateful for.

Do you have any nurseries near you?

I had to ring a few before I found it.