Are you better off on universal credit

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Sorry another universal credit post but wondering has anyone had a positive experience with universal credit? After tax credit renewal we are now barely keeping our head above water and apparently will be better off on universal credit but wary?

I got slammed with overpayments from 2011/12 when I started with UC. I was totally unaware that I owed anything! However I stopped claiming tax credits in 2012. Started UC in 2018 had heard nothing in the interim. Might be worth a telephone call to tax credits to check you don’t have any historical over payments

I’ve never had an overpayment, I’ve always overestimated and so far, (fingers crossed!) it’s worked in protecting us from getting more than we should.
Would the amount of TC claimed since April 6th til whenever my assessment date is possibly cause an overpayment? I can’t see how, but I don’t really understand it all.
Also, do UC have access to your monthly income then? Just referring back to @Zofloramummy and her valid point on being on 0hours; earnings up and down each month would mean UC altering... obviously with TC, this isn’t the case, it’s just taken as one earning over the year, so do UC have a more detailed system?
And, whilst I’m asking, do you have to be specifically detailed with an income breakdown? At the mo, my husbands pension contributions aren’t considered by TC, as they receive tax relief, so his income is earnings minus pension first then tax and NI after... but with UC, would we need to declare earnings and then £x pension contribution? Surely they’d know it was tax relief’d??
Thank yous!

Kc - Uc is based on reported earnings each month in your Uc assessment period so it should accurately top up your income each month based on reported earnings. There are issues for people who are paid four weekly or weekly.

HMRC report your monthly earnings and UC then alter your payment accordingly. So if you are unfortunate enough to be paid 4 weekly and get 2 pay days within your assessment period then you get nothing that month. It’s really important that your payday is nowhere near the UC dates for that reason. My UC assessment runs from 3rd. My pay date is the 15th.

You don’t have to ‘declare’ as the income information is taken from your employer by HMRC and that goes to UC directly

That’s brilliant info guys, thanks so much! So really, the system is easier than TC, where you don’t have to poop yourself with estimating... it’s all calculated for you? So, with DHs new job, we don’t know if there’ll be compulsory overtime, but with this system, if he does, our UC payment will adapt accordingly? Luckily, his new job will be pcm, his current is 4 weekly!
Ooh, and excellent tip on choosing your assessment day and keeping it clear of his payday, thank yous!

You choose your assessment day by applying mid way between pay days. That then becomes your assessment start date. Glad to be of help as it was all a confusing mess to me when I did it!

Just beware that UC is a ‘month in hand’ so overtime worked this month would mean less UC next month. Always try to save the difference otherwise you will end up out of pocket.

Absolutely. It’s all so crazy and new isn’t it! I really appreciate all the advice. DH refuses to do O/T in current job! But new job is a whole new career. My DD works for DH new company and he has to do standbys, emergency on call etc, so we assume DH will do too. Which would be a nightmare with TC, but maybe UC is easier in that sense?

You won’t end up with a big overpayment to refund at the end of the year. But for example you usually get £400 UC now this month income is £300 up on its normal level. You’d have to work out how much UC you would lose next month.
So your work allowance £503 isn’t counted. Anything over that is taken off at 63p per £. So you take your salary, deduct your allowance, times what’s left by .63 and that will give you how much they will take off your UC next month.
So from your £300 you need to make sure you don’t spend the amount you will lose the following month.
Hope that makes sense!!

Work allowance is only £503 if you dint claim the rent element. Otherwise it's £287.

Ooh yes that right! Sorry I don’t claim housing.

@DuckWillow you aren't getting a severe disability premium. That's something that is paid on legacy benefits (the old benefits). You may be getting the "severely disabled child addition" though which I guess is what you mean.

It's an important distinction as those receding a severe disability premium on legacy benefits can no longer claim UC as they are unlikely to be better off. Due to lobbying, the government has done a U turn and are keeping those receiving the SDP or who have received it in the last month, on legacy benefits and are not requiring them to migrate to UC until they are "managed migrated" over and will therefore benefit from transitional protection.

MiniMum97 may I ask a quick question of you as you appear to have better knowledge on this stuff with regards DLA for children.

Our child is in receipt of middle rate DLA, currently having applied to have this reviewed as "needs" have severely/significantly increased and received further diagnosis' since initial application. We are advised possibly once she is 5 we might possibly receive the mobility element, but not there yet.

I had to give up a pretty well-paid job over two years ago to be FTC, so my only income is Carers Allowance. We receive no other benefits as DP's salary we think exceeds the amount for anything further.

Would there be any point therefore in transferring to UC? We are at breaking point most months and unable to reduce our housing costs (could not afford to move even if we wanted to) and was advised that there may be a benefit to be on UC as it potentially allows us to access some other services for our child, whose needs we are desperately still trying to find the best strategies for...

Any advice would be welcome!

Can I just pop on this again, sorry!
I’ve been doing the sums and really educating myself regarding UC. I’ve proper studied & understood the breakdown of what entitledto says I’ll get and I’ve realised it says that we don’t qualify for anything towards housing costs. The ‘eligible rent’ & ‘cap rent’ are the same amounts & then under ‘housing costs contributions’ it says 0, yet the work element is only at £287, not £503. I’m a misunderstanding this?
Also, if we don’t qualify for the housing element, why is it still considerably more than with TC? Any ideas welcome, thank you :)

Sorry to jump on this thread but can someone give me some sort of idea.

I have been on tax credits since 2014
Unless something changes in my circumstances I assume I will be moved onto UC via managed migration at some point, though I have no idea when.
I will be considerably worser off on UC so I hope at the time the transitional protection will still stand.

My question is my salary is consistent. 12 months of the same wage. However I pay into a pension. So once my salary is taxed and national insurance taken, my pension then comes out. How will this be evidenced, bearing in mind my employer only submits my salary and tax and NI payments. This is the issue I have with TC at the moment. I can only declare them at point of declaration.

TIA

Which website calculator are you using? That’s sounds wrong as if you don’t qualify for housing then you get the higher work allowance.

Entitledto.com.

Housing Costs
Eligible rent £581.02
Cap rent £581.02
Housing costs contribution £0.00
Total Universal Credit Maximum Amount (including housing costs) £

Earned income
Net earnings £
Minimum Income Floor £0.00
Does Minimum Income Floor apply no
Work Allowance £287.00
Pension Contributions £
Statutory Sick Pay £0.00
Occupational Sick Pay £0.00
Statutory mat/pat/adoption pay £0.00
Earned income brought to account £

Am I reading it correctly @zofloramummy?

Uc will be more true to you current situation. When i was self employed i struggled on tax credits as i could get a good month and be ok then get a string of bad months but no extra support. But then once great month and suddenly end up overpaid for the year 😢
Uc is on the last 1 month so its true to your current earnings and i think more fair.

@surfskatefamily thank you, @zofloramummy pointed this out to me & totally agree with you, seems like a much more fairer system in that regards. My DH doesn’t do OT in current job, but through so many structure changes, we’ve been stung for the last 5 years with the less than/more than £2500 rule & never got our full entitlement plus it’s always a stress making sure you’ve got your estimations correct. His new job we think may have compulsory OT, which on TC will be a nightmare!
So, did you chose to go over to UC yourself @surfskatefamily?

It looks to me like your rent maybe under the allowable rental allowance. Which would mean the amount of UC you are getting should cover all of your rent. Does that balance out with the estimated award total?

Worse off for me.

I get about £400/month tc

Uc i get nothing as my mortgage repayment vehicle is an ISA- classed as savings.

@zofloramummy I got to admit, I’ve no idea. Again, this is all just info on the website entitledto. My rent is £700 a month, so would cover it, but wouldn’t leave much beyond that?

How much are you earning if you don’t mind me asking?

Don’t mind at all, really appreciate your help.
It’ll be my husbands wage, which I’ve entered yearly at £18500 with pension contributions at £1020 for the year. Then, I have entered the £50 (approx) that I’ve earned from one bank shift (likely ending this role in a weeks time).