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Original poster

To change over to UC?

42 replies

Holiday21plea · 05/10/2020 18:32

Hi. I will have childcare costs from next week. £520 a month. I’m currently on the old system WTC. I’ve used a benefit calculator to compare both and I called CAB to do one too. It’s just an estimate obviously but it does show I would be better moving myself voluntarily onto UC.

I am worried it will be a mistake as all I hear is negative reviews. The 5 week wait to start the process is not really an issue. Although the way you have to pay childcare costs upfront and UC then pay the following month is really wrong.

Shall I change over?

OP posts:
Saladd0dger · 06/10/2020 22:58

Hi op there’s a website called universal credit essentials and they show you how to accurately work out your entitlement. I switched over last month. We got £19 a week child tax credits. Just had our 1st universal credit statement and will be receiving £650. I’m shocked

Original poster
Holiday21plea · 06/10/2020 23:08

@Saladd0dger thank you. Really! Wow.

I think it depends on circumstances like another poster said. For me UC would deduct so much off my wage and pay a rent element but technically when I deducted all my childcare costs and so on it would be the same nearly as WTC so there’s not much point for me.

OP posts:
Oldsu · 07/10/2020 06:43

[quote Holiday21plea]@Saladd0dger thank you. Really! Wow.

I think it depends on circumstances like another poster said. For me UC would deduct so much off my wage and pay a rent element but technically when I deducted all my childcare costs and so on it would be the same nearly as WTC so there’s not much point for me.[/quote]
No-one deducts anything from your wages, your UC decreases by 63p for every £1 you earn so basically you keep your £1 and have 37p in UC

Babyroobs · 07/10/2020 07:35

[quote Holiday21plea]@Saladd0dger thank you. Really! Wow.

I think it depends on circumstances like another poster said. For me UC would deduct so much off my wage and pay a rent element but technically when I deducted all my childcare costs and so on it would be the same nearly as WTC so there’s not much point for me.[/quote]
As above no one deducts anything off your wage ! Uc is a benefit to top up your wage. You get your wages then your Uc on top. they give you a total award and then wages reduce that award after a disregard is already applied,

Babyroobs · 07/10/2020 07:37

Any Uc calculation ( as well as a WTC calculation) needs to take into account also that the extra covid increase may be ending in April 2020 unless the government decides to continue it. People are currently being paid an extra £83 a month on top of normal.

Original poster
Holiday21plea · 07/10/2020 08:17

If you look at the image it states £582 taken off my current wage. Plus they would be giving me housing benefit because they have deducted my wage.

They won’t let me keep my full wage £1200 plus give me housing benefit on top or have I misunderstood here?

OP posts:
Original poster
Holiday21plea · 07/10/2020 08:18

@Babyroobs

Any Uc calculation ( as well as a WTC calculation) needs to take into account also that the extra covid increase may be ending in April 2020 unless the government decides to continue it. People are currently being paid an extra £83 a month on top of normal.
Yes your right they do include the extra as your saying it does state that on the website.
OP posts:
Original poster
Holiday21plea · 07/10/2020 08:30

So it would be £950 + the remainder of my wage which would be £618 = £1,568.

Once I have deducted £520 for childcare costs it would leave me £1048. I think I may have a short fall to pay on my rent due to having an extra bedroom.

So there’s no way I’m £47.00 better off each week on UC.

Working tax monthly payments are £648 + my wage £1200 and CB = £1964

I would deduct my rent £389 and council tax £100 (9 months) and childcare costs £520 = £955.

OP posts:
trevorandsimon · 07/10/2020 08:57

@Holiday21plea

If you look at the image it states £582 taken off my current wage. Plus they would be giving me housing benefit because they have deducted my wage.

They won’t let me keep my full wage £1200 plus give me housing benefit on top or have I misunderstood here?

It's not taken off your wage. They cannot take money away you have earned. They are saying because you have earned 1200 or whatever it is, they will give you less. They take off the difference from what you have earned from a full award.
Original poster
Holiday21plea · 07/10/2020 09:12

@trevorandsimon ahh yes your right UC would deduct from the award.

The difference would be £93 a month (not including a possible rent shortfall that I would need to pay). Between WTC & UC.

OP posts:
Babyroobs · 07/10/2020 09:13

@Holiday21plea

So it would be £950 + the remainder of my wage which would be £618 = £1,568.

Once I have deducted £520 for childcare costs it would leave me £1048. I think I may have a short fall to pay on my rent due to having an extra bedroom.

So there’s no way I’m £47.00 better off each week on UC.

Working tax monthly payments are £648 + my wage £1200 and CB = £1964

I would deduct my rent £389 and council tax £100 (9 months) and childcare costs £520 = £955.

The childcare element has not been added onto that calculation though as I stated earlier so the award would be higher than what that calculation says. Also I'm not sure what you say when you say the remainder of your wage - you keep ALL your wages, nothing is taken off that. The deduction is from your total UC award.
Babyroobs · 07/10/2020 09:18

So your total UC would be the £1532.38 + childcare element on top,
Then your wages are £1200, the first £292 is disregarded ( work allowance) then for each pound above that you lose 63p for each pound so your deduction would be £572.
So let's just say that your childcare element comes to £400 a month - your total UC award would be £1932.38. They take £572 off this for your earnings, so you get paid £1360.38 UC per month then you keep all your wages of £1200 so total amount you have to live off is £2560.38.
If you let me know your childcre costs I will try and work it out for you.

Babyroobs · 07/10/2020 09:21

Sorry just seen childcare cost are £520 a month so childcare element would be 85% of that , so £442, so my example above is not far out as it was based on a childcare element of £400. So I think you would be significantly better off on UC.

Babyroobs · 07/10/2020 09:23

You would be better off by over £500 a month on UC.

Babyroobs · 07/10/2020 09:30

Calcualtion:

Standard single over 25 £409.89
Childcare element £442.00
Rent element £362.41
Children x 3 £760.08

Total UC £1974.38.

Deduction for earnings £1200 - £292 ( work allowance) x 0.63 = £572.

£1974.38 - £572 = £1402.34 Universal credit per month.
Wages = £1200 per month
Child benefit x 3 = £195.80 every four weeks.

Saladd0dger · 07/10/2020 10:31

And you can get a advance to keep you going until your 1st payment. I wish we swapped over sooner. Weren’t entitled to housing benefit on the old system. Even when we get a extra wage in a assessment period we will be getting £450 so still better off

Original poster
Holiday21plea · 07/10/2020 10:45

@Babyroobs thank so much for doing me a breakdown. I will be better off on UC be quite a lot I just spoke to CAB. They said similar to you.

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