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Original poster

Universal credit

26 replies

Cece92 · 05/05/2021 20:09

Hi everyone. I have a question about Universal Credit. Can I claim when I work 40 hours a week and a single parent? I'm currently on child tax credits but was going to switch over? Not sure if it's with it but will have too eventually

OP posts:
Viviennemary · 05/05/2021 20:14

Depends on how much you earn. And how many children you have. Most people seem to think they are worse of on UC.

Babyroobs · 05/05/2021 20:56

It depends on a lot of factors - how much your net income is, are you paid weekly or monthly, how many children do you have, do you have rent to pay ? UC is calculated based on which elements you qualify for and then the total of those elements is reduced by any net earnings reported in your monthly assessment period.
UC is good for working parents - you get a work allowance meaning a certain amount ( depending whether you rent or not ) gets disregarded before earnings reduce your total UC. many people are better off on UC.

inmyslippers · 05/05/2021 22:05

Try entitled calculator. Not always accurate but can give you a rough idea

WhatWouldPhyllisCraneDo · 05/05/2021 22:09

I could claim it when I was working 37.5 hours, and was better off than when on TC.
But like PPs have said it depends how many DC you have, rent costs, childcare costs, how much you earn etc.
If you qualify for TC I would have thought you would qualify for UC.

sickofturkey · 05/05/2021 22:11

From experience you are better off if you work , those worse off tend to be those who don't work.

I work full time and I am Much better of on universal credit £200 per month at least better off !

Original poster
Cece92 · 06/05/2021 23:50

I have applied and it's processing I'm paid monthly and earn around £1300 a month after tax on 40 hours a week. I get £44 a week TC a week. My friend gets universal and she's much better off especially for childcare elements. My tax credit payments are no longer showing on my app. X

OP posts:
rach2713 · 07/05/2021 00:05

I never got any tax credits but so get universal credits. I also think everyone will end up on it at some point..

starpatch · 08/05/2021 06:47

Turn 2 us have an online calculator so you can compare universal credit versus xhild tax credit.

Snuzzle · 08/05/2021 10:20

Think it very much depends what hours you work and what elements you’re eligible for.
I work 30 hours per week and have 1 child but according to all the benefit calculators I’d be £133 a month worse off on UC than I am on tax credits. Don’t really know how they think I’ll be able to manage with that difference when I’m forced to move across Hmm

Babyroobs · 08/05/2021 11:50

@Snuzzle

Think it very much depends what hours you work and what elements you’re eligible for. I work 30 hours per week and have 1 child but according to all the benefit calculators I’d be £133 a month worse off on UC than I am on tax credits. Don’t really know how they think I’ll be able to manage with that difference when I’m forced to move across Hmm
When you move across, if under managed migration then you would have transitional protection so would not be worse off.
Snuzzle · 08/05/2021 16:00

@Babyroobs transitional protection only applies if you’re moved over forcibly without a change in circumstances. Our local area isn’t doing that but instead convincing people they’ll be better off and getting them to move over willingly - this has already happened to several people I know. Fact is they’ll do anything to make sure they don’t have to pay extra out and don’t care if it means people like me are worse off.

Babyroobs · 08/05/2021 16:17

[quote Snuzzle]@Babyroobs transitional protection only applies if you’re moved over forcibly without a change in circumstances. Our local area isn’t doing that but instead convincing people they’ll be better off and getting them to move over willingly - this has already happened to several people I know. Fact is they’ll do anything to make sure they don’t have to pay extra out and don’t care if it means people like me are worse off.[/quote]
That is why I mentioned managed migration.
People can always speak to CAB or similar to find out whether they need to move or not, they should never do so without finding out the correct legislation first.
Who is it that is wrongly advising people to make themselves worse off ? Where is the mis-information coming from - is it the council?

Snuzzle · 08/05/2021 16:36

@Babyroobs the council were responsible for telling at least 2 people I know they’d be better off moving over, did calculations for them then when they moved they were both worse off.
One was the job centre, she was looking for a job with more hours than the 20 she already had. They told her she’d get a higher housing benefit allowance if she moved over but because she has her mum living with her even though the tenancy is in her name she doesn’t get as much because they take her mums private pension into account. She’d told them all this but they still insisted she’d be better off.
I’ve read that under the rules under 10,000 can be transferred under managed migration so they’re working on getting as many as possible to transfer willingly.

Babyroobs · 08/05/2021 19:11

[quote Snuzzle]@Babyroobs the council were responsible for telling at least 2 people I know they’d be better off moving over, did calculations for them then when they moved they were both worse off.
One was the job centre, she was looking for a job with more hours than the 20 she already had. They told her she’d get a higher housing benefit allowance if she moved over but because she has her mum living with her even though the tenancy is in her name she doesn’t get as much because they take her mums private pension into account. She’d told them all this but they still insisted she’d be better off.
I’ve read that under the rules under 10,000 can be transferred under managed migration so they’re working on getting as many as possible to transfer willingly.[/quote]
Her mums private pension would never be taken into account on her UC. There would be a non dependent deduction on her rent element for her mum living there but private pension or any of her mums income would not affect her Uc payment.

Babyroobs · 08/05/2021 19:14

And a non dependent deduction is only around £75 that she would lose a month, which is probably much less than on housing benefit where her mums income/ pensions would be taken into acccount.

Saladd0dger · 08/05/2021 19:23

There is a accurate website called universal credit essentials, it shows you how to work your award out each month. We were never entitled to much on the old system. No housing benefit either. We are quite a lot better off on universal credit and we both work.

Snuzzle · 08/05/2021 19:37

@Babyroobs that’s what she was told by her advisor. She’d had trouble with housing benefit since her mum moved in and was told by the council it would be simpler if she moved to UC but has still had problems with deductions and allowances and is now worse off than she was before. I’ll send her what you’ve said but her advisor doesn’t seem bothered about helping her so not sure it’ll make any difference.

Babyroobs · 08/05/2021 19:43

[quote Snuzzle]@Babyroobs that’s what she was told by her advisor. She’d had trouble with housing benefit since her mum moved in and was told by the council it would be simpler if she moved to UC but has still had problems with deductions and allowances and is now worse off than she was before. I’ll send her what you’ve said but her advisor doesn’t seem bothered about helping her so not sure it’ll make any difference.[/quote]
Maybe she had overpayments of housing benefit that are now being deducted from her UC ?

Snuzzle · 08/05/2021 19:48

@Babyroobs yeah that’s possible I guess but it’s not what she’s been told and no one seems to want to look into the issue.

wiggle45 · 29/12/2021 04:51

I wonder how many people realise what has happened since Universalcredit came in
Under the old system you had housing and council tax benefit this was tax exempt when income was calculated with UC housing benefit is included in payment so classed as income so you have to be worse off
i.e if a person has benefits of £200 a week say roughly £800 month £9.600 a year housing benefit if included in income £500 pm £6000 a year making total £15,600 ( all figures hyperthetical just giving example ) so tax allowance £13000 a year then if all classed as income even though on benefits the person would owe government tax on £2,600 which would be ludicrous but you making HB1513755 and ct benefit tax exempt brought it below personal income limit but with Universal credit your hb( not ct) is included in calculation and paid directly to you so then your income has to be below personal allowance limit and have to be worse of on UC

CiaoForDiNiaoSaur · 29/12/2021 05:05

@wiggle45 do you mean you pay tax on your benefits? Because I never have Confused

wiggle45 · 29/12/2021 08:35

www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

Site tells you what benefits are or are not taxed

CiaoForDiNiaoSaur · 29/12/2021 08:54

So UC isn't taxed.
I'm not really sure what your post is trying to say tbh.

CorrBlimeyGG · 29/12/2021 11:05

@wiggle45 UC is not taxable income. Can you explain the problem you're having? Has HMRC sent you an incorrect tax notice?

wiggle45 · 29/12/2021 13:14

Just trying to explain why better off on benefit
Say tax allowance £12.500

Rent £7000 per year
Benefit £8000 per year
Total £15,000 tax free

Working earnings £15,000
Personal allowance £12,500
Taxed on £2,500 plus pay national insurance

This is my understanding of the system if I,m wrong then ok

So my assumption automatically better off on benefit ?