Furloughed and tax credits

[SpideyMom]

Hi

I've just had a phone call to say we are all having to be furloughed. When he said temporarily layed off I felt sick. He reassured me that we are all still employed but it's what they have to do at this time.
Will this mean I will lose my entitlement to tax credits and will be moved to UC? I really hope not as the difference is huge.

Thanks in advance

Why are you not being paid? You are either furloughed or laid off, it's not the same.

He used the term furloughed to get 80 percent pay

So you are not laid off? You are getting paid 80% of your wage?

I wouldn't move to Universal Credit unless the 20% if the difference between eating and not eating. I would look to reduce outgoings as much as possibly to enable me to remain on tax credits. How much are you saving by not going to work (fuel/travel/coffee/lunch)?

Unless I have misunderstood and people are being moved without applying for UC?

Sorry. It's just that the information is unclear online. I am currently in receipt of tax credits but moving to UC would put me much worse off.

I've read I have to let them know my hours are changing and I'm being furloughed which means I am no longer meeting the criteria of tax credits which will force me to move.

Is this the case?

You usually do a change of circumstances form and they alter your payments. You only move to UC if you no longer qualify or have to start a new claim. I am unsure what their advice is re furlough but if you can survive on 80% and your usual tc payment then I wouldn't do anything.

I called the tax credits helpline and had a recorded message saying that any changes in hours during this period will not be counted at the moment as it’s an unprecedented situation. I’m in same boat as you and desperate to avoid being moved on to UC. I’m scared to make any changes, but the recorded message reassured me slightly that they are trying to be fair.

@Permenantlyexhaustedpidgeon my heart sank when he said. I totally understand but moving to UC is something I have desperately tried to avoid. I dont get alot of tax credits, but on UC it will be much less. I'm not panicking.

Your response has somewhat reassured me. I am so scared though as we live to within pennies as it is. I can accept the 80 percent pay, but moving to UC will make living impossible. I've already cut everything I possibly can

You aren’t becoming unemployed so it’s not a change of circs. You remain employed and paid a salary by your employer. Putting you on furlough means there is no work for you to do and allows your employer to claim the 80% subsidy. It’s not a change of hours etc but a temporary stoppage of work. The expectation is that you will resume your normal working hours etc when furlough ends. If that doesn’t happen, you deal with the situation then.

Thank you for your response. It's made me feel better

No you don’t need to report anything to tax credits
@SpideyMom