Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

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:
Babyroobs · 26/07/2020 15:43

@Toilenstripes

🙄 Unbelievable
Yes it is but so are lots of things regarding tax credits. I guess that's why the system has now changed !!
ageingdisgracefully · 26/07/2020 15:52

Would you be eligible for NSJSA (dependent on NI contribution record)? You can keep your savings then (but you'd have to sign a commitment stating that you're intending to take/look for work for 35 hours).

Babyroobs · 26/07/2020 15:54

@ageingdisgracefully

Would you be eligible for NSJSA (dependent on NI contribution record)? You can keep your savings then (but you'd have to sign a commitment stating that you're intending to take/look for work for 35 hours).
Yes good idea although it only lasts for 6 months.
Babyroobs · 26/07/2020 15:55

Op I really don't understand how you've been getting WTC on an income higher than 24K ?? And £600 seems like a huge amount. Does it include childcare costs? If so then surely you don't need childcare now one of you has been made redundant.

Babyroobs · 26/07/2020 15:56

How many children do you have?

Original poster
Joanne2015 · 26/07/2020 15:58

My child care is £750 a month so the tax credits help with that. As I’m now not working I assumed that would trigger a change to UC. Yes I’m currently looking for work, I have a job offer with the police but won’t be a starting until next May. I’ve not had a shift from work since April and yes we have resorted to savings to help with that.

OP posts:
Original poster
Joanne2015 · 26/07/2020 16:08

I have 3 children under school age. They were in nursery 3 days a week so I could work. The aim is to get back to work so didn’t really want to lose the nursery place for all 3 if I end up working again in a month or so. Like I said I assumed the change in my circumstances would automatically trigger a change to UC.

OP posts:
Babyroobs · 26/07/2020 16:09

@Joanne2015

My child care is £750 a month so the tax credits help with that. As I’m now not working I assumed that would trigger a change to UC. Yes I’m currently looking for work, I have a job offer with the police but won’t be a starting until next May. I’ve not had a shift from work since April and yes we have resorted to savings to help with that.
So I assume tax credits know you are no longer working ? I presume you have taken the children out of childcare because you wont be able to claim help with childcare if one of you is not working.
TheLegendOfZelda · 26/07/2020 16:10

Has anyone said you need to change to UC?

Babyroobs · 26/07/2020 16:10

@Joanne2015

I have 3 children under school age. They were in nursery 3 days a week so I could work. The aim is to get back to work so didn’t really want to lose the nursery place for all 3 if I end up working again in a month or so. Like I said I assumed the change in my circumstances would automatically trigger a change to UC.
Ok , you cannot claim childcare help unless you are both working after four weeks of losing your job I don't think. If you haven't worked since april and still have been claiming help with childcare then I think you need to let HMRC know asap.
Original poster
Joanne2015 · 26/07/2020 16:11

I’ve only just lost my job on wed so not made the change as of yet but I will be informing them.

OP posts:
Original poster
Joanne2015 · 26/07/2020 16:13

I was Still employed just not been getting my usual shift due to covid, as of Wednesday I don’t have a job as agency can’t offer me shifts that I need.

OP posts:
TheLegendOfZelda · 26/07/2020 16:13

Sorry about your job

I'm not sure this triggers a change to UC. Definitely don't volunteer for it!!

Original poster
Joanne2015 · 26/07/2020 16:14

Plus the childcare isn’t actually the majority of that payment.. it only accounts for £140 a month towards its I think: I just choose to use it all for childcare so I can work

OP posts:
Babyroobs · 26/07/2020 16:14

It doesn't trigger a switch to Uc. That's not to say you wouldn't be better off on Uc if you didn't have the savings, but as you know the savings would mean you wouldn't get any UC so just stay on Tax credits.

Babyroobs · 26/07/2020 16:15

@Joanne2015

Plus the childcare isn’t actually the majority of that payment.. it only accounts for £140 a month towards its I think: I just choose to use it all for childcare so I can work
Ok well when you let HMRC know that you are no longer working they should re-calculate your award .
confusedandold · 26/07/2020 16:16

@Joanne2015
You won't have to move to UC because you have lost your job unless you try to claim jobseekers or housing benefit. You obviously need to inform them as they will stop the money for childcare but if you take a while finding work, at the end of the year you will be entitled to a sum as your income will have decreased from last year.

Original poster
Joanne2015 · 26/07/2020 16:17

Ah ok I didn’t know that. I just assumed the change in circumstances would mean I need to move over. Thanks for clearing it up for me

OP posts:
ForeverBubblegum · 26/07/2020 16:18

If your partner is still working then you might not have to end your TC claim. As long as he does above 24(I think) hours, as a couple you still get WTC so it's an update not a new claim. However you won't be able to claim for childcare unless you both work, so you might need to give notice to nursery.

Is any of your claim not the childcare elements? even just a few pounds to keep the claim active will mean you can update it again once you start working, so won't be migrated.

Babyroobs · 26/07/2020 16:18

[quote confusedandold]@Joanne2015
You won't have to move to UC because you have lost your job unless you try to claim jobseekers or housing benefit. You obviously need to inform them as they will stop the money for childcare but if you take a while finding work, at the end of the year you will be entitled to a sum as your income will have decreased from last year.[/quote]
Contributions based JSA could still be claimed without triggering a switch to UC.

Original poster
Joanne2015 · 26/07/2020 16:21

Yeah we get working tax credits and child tax credits.. so even without childcare would still get something

OP posts:
CloudsCanLookLikeSheep · 26/07/2020 16:21

I dont understand why the OP cant claim contribution basee JSA

Original poster
Joanne2015 · 26/07/2020 16:24

I can..but I don’t need to if I stay on tax credits. If I was to have to move to UC I’m sure I would have to but not sure if my savings would mean I can’t claim that as well. I haven’t actually got proper advice yet as only just happened and I just did a calculation online and it said I’d get nothing

OP posts:
Babyroobs · 26/07/2020 16:30

@Joanne2015

I can..but I don’t need to if I stay on tax credits. If I was to have to move to UC I’m sure I would have to but not sure if my savings would mean I can’t claim that as well. I haven’t actually got proper advice yet as only just happened and I just did a calculation online and it said I’d get nothing
You cannot claim Uc with savings over 16k and any savings over 6k will reduce your Uc by about £17 a month for each 1k you have above 6k.
Endogal · 26/07/2020 16:50

Christ. It genuinely would never have even crossed my mind to apply for benefits if I had 23k in savings Shock

Swipe left for the next trending thread