Tax credits VS Universal credit

[Chipsordad]

Hello.

I’m looking for advice please from any single parents that were or are on the old style working tax and child tax credits. I will have new additional childcare fees to pay soon that will cost £560 a month for 1 child.

Has anyone changed recently from WTC to UC and regretted it? Apart from the 5 week wait.

I’ve got 2 rough calculations and it is showing that if I went onto UC I would be a bit better off possibly by £40ish pound per month approximately.

The idea of changing over doesn’t appeal to me though mainly because it sounds more complex the way UC work everything out.

Working people do not fare too badly On UC. But it does depend on individual circumstances, rent etc.

@Chipsordad

Hello.

I’m looking for advice please from any single parents that were or are on the old style working tax and child tax credits. I will have new additional childcare fees to pay soon that will cost £560 a month for 1 child.

Has anyone changed recently from WTC to UC and regretted it? Apart from the 5 week wait.

I’ve got 2 rough calculations and it is showing that if I went onto UC I would be a bit better off possibly by £40ish pound per month approximately.

The idea of changing over doesn’t appeal to me though mainly because it sounds more complex the way UC work everything out.

It's actually a lot simpler than tax credits and works on real time so people don't end up with overpayments or underpayments like they do on tax credits, but ultimately it depends on your situation whether you are better off or not. From what I have read , claiming back childcare can be a headache on UC until you get the hang of it and the first month needs to be paid upfront.

I'm wondering this too. I'm on TC and was going to just stay on it until I'm made to change over.

I should add. Whilst on WTC I mange to pay my full rent and CT myself and that’s what I like as I feel like I know where I am finically and there’s no risk of over payments. I never work OT.

Working tax have always been fab for me personally I can’t complain. The run on for 4 weeks is a big help too.

@Chipsordad

I should add. Whilst on WTC I mange to pay my full rent and CT myself and that’s what I like as I feel like I know where I am finically and there’s no risk of over payments. I never work OT.

Working tax have always been fab for me personally I can’t complain. The run on for 4 weeks is a big help too.

On UC you would get a rent element too so yes likely to be better off.

You're not allowed over £6000 in savings without being penalised money wise on UC unlike tax credits.

The extra £40 might be the additional payment due to COVID-19. Every claim receives it until next year.

@lyingwanker

The extra £40 might be the additional payment due to COVID-19. Every claim receives it until next year.

There is also an extra amount similar on working tax credits.

@MondeoFan I think I may do the same.

Does anybody know if I stay on WTC but made a application for Council tax benefit would I be automatically switched onto UC?

No council tax benefit wouldn't mean a switch to UC.
I know this as my wages go up and down and sometimes when I'm earning less I can claim council tax benefit but when I'm earning more I'm simply not entitled to it.
The area I'm in they haven't rolled out UC yet

@MondeoFan

No council tax benefit wouldn't mean a switch to UC. I know this as my wages go up and down and sometimes when I'm earning less I can claim council tax benefit but when I'm earning more I'm simply not entitled to it. The area I'm in they haven't rolled out UC yet

I spoke to an advisor from Citizen advice bureau and he said they would change me onto UC. I will have to double check again thanks.

I work for a council and claiming CTS does not trigger a change to UC.
CTS is controlled by the council so nothing to do with DWP.

@LastRoloIsMine yes that's my experience of it. Don't housing benefit and council tax benefit go kind of hand in hand together

They do. Both HB and CTS are council controlled.

I switched from TC to UC a year ago. Setting it up was a ball ache, took me ages with that Digidentity thingy.

Then theres the 5 week wait for the money to roll in. If you put some money aside now for expenses to cover that waiting period you're golden. Also, i had to go to the job centre and hand over my bank account statements and any savings/investments I had, wage slips, prrof of childcare costs (had to get this in writing from childcare providers with the amount of hours and cost). Coronavirus means this is now all done online I think.

Any savings of £6k or more are penalised. Any earnings per month you make over a certain amount and they take 63p in the pound off you or something like that. I cant recall what the exact figures.

You have to screenshot or take a picture of your childcare costs everytime you get billed and send this over to them.

The things I like about it (even though it's not a good system for everyone) are the fact it is in real time so you can never be overpaid or underpaid so you avoid any nasty surprises.

Also when your account is up and running you can leave a message if you have a query and someone always gets back to you. I find the staff very helpful and friendly. So you've none of that waiting around on hold on a phone call for half an hour.

I dont think I'm any better off on it than I was with TC, but I couldnt say for sure because my childcare fees have changed dramatically since I was on TC.

In all, when the system works, it works well.