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Original poster

Move to uc from Tc leaves us ineligible

57 replies

Joanne2015 · 26/07/2020 13:07

I’m currently on tax and working credits. We get around 600 a month and on a joint income at the moment of 24000 die to me losing my job. We have saved so hard the past years since we had kids to get our savings boosted and have around 10000 in savings account. I also have stocks that my grandad opened for me when I was born, around 11- 13000 depending on stock market. I haven’t touched them for 40 years and was planning on using it for a wedding. So now if we need to move over we won’t get anything at all and will need to use all our savings. I’m terrified to move over now as it’s a huge loss to us and will eat through our cash savings fairly quickly. Has this happened to anyone else?

OP posts:
Sarafive · 26/07/2020 13:15

That's a lot of money to have in savings. Surely that's fair to expect you to fund yourself as you have the means to? At what point can we assume people will take responsibility for themselves? Genuine question, not trying to be nasty. We have less in savings and if we lost our jobs, I would expect to dip into our savings to stay afloat, not to keep them for a more ideal purchase like holidays/new house etc. Surely that's the point of savings, after all, to be used when a need arises?

Original poster
Joanne2015 · 26/07/2020 13:27

Yeah I get that but the issue I have is more that we’ve been eligible for past 4 years and now suddenly not. Obv we have bills and outgoings based around having that income, it just feels a bit unfair to suddenly be told we get nothing

OP posts:
Iminaglasscaseofemotion · 26/07/2020 13:29

But you have a lot of savings. Why would you be eligible for uc. I'm surprised with those savings you are eligible for TC to be honest.

Mydogisthebestest · 26/07/2020 13:30

23k in savings and you want benefits.

Okay then.

Iminaglasscaseofemotion · 26/07/2020 13:31

Have you been eligible for TC though? Have you actually declared all that money?

BobbieDraper · 26/07/2020 13:36

I claimed tax credits for around 4 years when my ex left. I certainly wouldn't have been trying to keep over 10k set aside for a wedding.... seriously op. You want benefits to pay your outgoings so you can keep your £11/13 thousand to pay for a party?

Benefits are absolutely necessary when people are having a hard time; partner leaving or dieing, ill health, job loss. We need them available. But they should not be expected to pay your outgoings when you have over 20 thousand in savings, and they certainly shouldn't be used so you can spend those savings on a party.

Sort out your priorities.

Original poster
Joanne2015 · 26/07/2020 13:36

Tax credits don’t base it on savings only income from them if it’s over 300 a year. Which it’s not... so no I’m not actually doing anything dodgy with regards to that.

OP posts:
IndecentFeminist · 26/07/2020 13:37

That's what savings are for 🤷

QuentinQuarantino · 26/07/2020 13:38

You think you should get benefits to live off while you have £23 grand put away for a party?

Jesus. Wept.

confusedandold · 26/07/2020 13:40

I don't understand why you have to move over to UC? If you are on Tax credits you only move onto UC if you start claiming job seekers or a similar benefit? You talk about 'we' so there is a partner involved. Have you been told you have to move to UC and what is the reasoning behind it?

TheQueef · 26/07/2020 13:42

People argued that TC were too generous in situations like yours OP so UC was deliberately a cut.
It's irritating for you to be changing and losing money but it isn't really pushing you into poverty.

AriettyHomily · 26/07/2020 13:43

The entitlement. Use your savings. I'd love to have 23k in savings.

Username7521 · 26/07/2020 13:44

OP I really don’t the system is built so you can save vast quantities of money for whatever reason. The system is their to ensure people can keep afloat. That’s fine that you were eligible but I really don’t think the change is unfair.

AldiAisleofCrap · 26/07/2020 13:44

@Joanne2015 if you move to UC with managed migration you have a year to use your savings.
People forget tax credits were never meant to be “benefits”. People are happy to claim CB with much higher savings.

Anotherscentedcandle · 26/07/2020 13:45

I'm afraid it's difficult to find a lot of sympathy for you OP. What is the point in your savings (which you have presumably built up partly using benefits) if not to use when you need them?

Toilenstripes · 26/07/2020 13:46

🙄 Unbelievable

Sunseed · 26/07/2020 13:47

Whose wedding were you planning to use the stocks/shares for? If yours, why the wait?

ForeverBubblegum · 26/07/2020 13:47

I kind of get you, we bought a house whilst on tax credits, which drastically reduced our outgoings so was an important step towards getting off benefits.

Just before we bought we had about 15k in savings (10k deposit, legal fees, moving costs) so under the UC system wouldn't have been eligible. This would have meant we needed to burn through the savings in a couple of years, wouldn't have bought, and would probably still be claiming housing benefit now (10 years later).

TheQueef · 26/07/2020 13:50

Tax credits were designed to help lower paid working people not get trapped in the benefit cycle but after a few years of Tory propaganda and policy you will be judged as a benefit scrounger or cheat trying to milk the system.
Benefits are bad.

Lougle · 26/07/2020 13:53

As a previous poster has said, you have 12 months to use the money before it is taken into account. When were you going to marry?

AmberAndAlexsMum · 26/07/2020 14:01

£16000 is the cut off for savings, if you are trying to claim benefits. You can reduce your savings but you have to prove that there were genuine reasons for the expenditure.

pinkandstripey · 26/07/2020 14:23

Lots of people would be worse off under UC. You can have 6k in savings for UC and is not taken into account. Then between 6 and 16k it reduces pro rata and at 16k you get nothing.

Unless you live in a pilot area (and then you would be compensated for a forced move for a period), you do not need to move onto UC. What's changed for you that makes you thing you need to claim UC?? One day they will make everybody move onto UC, but I suspect that's a long way off.

Do not start a claim for UC until you have had proper advice, as a UC claim will stop your legacy benefits immediately.

ageingdisgracefully · 26/07/2020 14:34

I'm not quite getting it either. Confused.

Are you planning on claiming UC as you've lost your job and miffed because you won't be eligible due to household income being too high?

Alfiemoon1 · 26/07/2020 15:07

Wow you have £23 k in savings and expect to get uc and there was me thinking benefits were to help people keep a roof over their heads and food on the table not build up thousands of pounds worth of savings

Would you not be looking for another job so you aren’t reliant on benefits and get to keep your savings

Babyroobs · 26/07/2020 15:41

If you have to move to UC under managed migration, I believe your savings will be protected. If you move yourself to Uc you would not be eligible with that much in savings so I guess the answer is wait until you are asked to move.