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Original poster

Swapping from CTC to UC? Better off?

14 replies

flower277 · 24/03/2022 10:25

I heard on the radio that everyone who gets tax credits will be moved over to Universal credit by 2024. It said something about some people being better off on UC than tax credits so I used the calculator on entitled to and it’s saying we could be £70 a week better off?! We both work full time (me in a school so wage fairly low as pro rata) and have 3 children, could this really be right?!

OP posts:
Pinkandpurplehairedlady · 24/03/2022 10:28

I'm definitely better off on Universal Credit than tax credits. Your tax credits stop as soon as you put in your claim for UC and you don't get any money for 5 weeks so I applied for an advance to see me through. The advance is repayed over 12 months.

Babyroobs · 24/03/2022 10:39

£70 a week sounds a bit optimistic but if you have rent to pay it could be correct. The work allowances and taper rates for Uc have changed in recent months making people on Uc significantly better off. The managed migration of people from old style benefits is way behind schedule so unlikely to be anytime soon.

Original poster
flower277 · 24/03/2022 10:46

We do pay rent but don’t receive any housing benefit. Literally just child tax credit and child benefit.

OP posts:
Babyroobs · 24/03/2022 10:48

@flower277

We do pay rent but don’t receive any housing benefit. Literally just child tax credit and child benefit.
You are likely better off on Uc then as you'd get a rent element. Ask CAB or similar to do you a better off check.
NCLsim1990 · 24/03/2022 10:58

Be very very careful op
I just switched from ctc/wtc to UC
And because I'm privately renting & all I could give was a letter from landlords agent; I was told I can't claim anything. Although it clearly states in the housing proof section that people without tenancy agreements can do this if renting private. My actual landlord is the freeholder & therefore I can't/won't have a tenancy until the shop I live above is leased to a lease holder. I really wish I'd stay on wtc as I was entitled to £61 per week. Now I'm going to really struggle.

Babyroobs · 24/03/2022 11:03

@NCLsim1990

Be very very careful op I just switched from ctc/wtc to UC And because I'm privately renting & all I could give was a letter from landlords agent; I was told I can't claim anything. Although it clearly states in the housing proof section that people without tenancy agreements can do this if renting private. My actual landlord is the freeholder & therefore I can't/won't have a tenancy until the shop I live above is leased to a lease holder. I really wish I'd stay on wtc as I was entitled to £61 per week. Now I'm going to really struggle.
It's very rare that there are problems with a tenancy agreement and usually ways around it. have you asked for a mandatory reconsideration on the decision, or spoken to somewhere like CAB or shelter to see if there is any way around it. Hope you get it sorted.
WelfareRights · 25/03/2022 22:16

@NCLsim1990

Be very very careful op I just switched from ctc/wtc to UC And because I'm privately renting & all I could give was a letter from landlords agent; I was told I can't claim anything. Although it clearly states in the housing proof section that people without tenancy agreements can do this if renting private. My actual landlord is the freeholder & therefore I can't/won't have a tenancy until the shop I live above is leased to a lease holder. I really wish I'd stay on wtc as I was entitled to £61 per week. Now I'm going to really struggle.
Yes, you need to challenge that decision. It's not correct that they only accept a tenancy agreement as proof of rent liability - there's lots of other ways to approve liability and a letter is a pretty standard one tbh. Put in a mandatory reconsideration, and if no joy, appeal it. You have up to 13 months to challenge a decision, so don't be put off if you've missed the one month deadline (if DWP refuse to consider a late MR, you can appeal it anyway).

I do not understand why you have been told you can't have a tenancy agreement with a freeholder, that all sounds very odd. So I would also contact Shelter about the legality of that. They are usually easier to get hold of by webchat.

Sunshinedreaming2022 · 25/03/2022 22:19

I dread being moved over because I don’t like the monthly income check element. Dh is on a zero hours contract so wage is variable each month, but is also paid 4 weekly so once a year is paid twice in one month. I believe on UC they will take that and then not pay us anything the following month. I much prefer the tax credit system of working out over the year then having fixed payments.

Sarahplane · 25/03/2022 22:24

I dread being moved over. We currently get CTC and all the calculators say we won't be entitled to anything from UC but that we are entitled to CTC so we will be worse off. We both work and have 2 kids, 1 who is disabled). I'm also about to start a Uni course and again will be entitled to much more while under the tax credits system as they don't count student loan as income whereas UC does.

Babyroobs · 25/03/2022 22:36

@Sunshinedreaming2022

I dread being moved over because I don’t like the monthly income check element. Dh is on a zero hours contract so wage is variable each month, but is also paid 4 weekly so once a year is paid twice in one month. I believe on UC they will take that and then not pay us anything the following month. I much prefer the tax credit system of working out over the year then having fixed payments.
Uc is hugely better for people with variable earnings as it adjusts itself in real time rather than ending up with overpayments or underpayments at the end of the tax year. Four weekly pay is a problem but as long as you work out in advance which month two payments are going to fall in your assessment period, and set a little aside from the other months there should not be a problem.
Babyroobs · 25/03/2022 22:39

@Sarahplane

I dread being moved over. We currently get CTC and all the calculators say we won't be entitled to anything from UC but that we are entitled to CTC so we will be worse off. We both work and have 2 kids, 1 who is disabled). I'm also about to start a Uni course and again will be entitled to much more while under the tax credits system as they don't count student loan as income whereas UC does.
Well yes you will be much better off on tax credits. It's hugely unfair that someone still on tax credits does not have their student loan counted wheras if on UC it will be deducted pound for pound. It is one of the most unfair things about currently having two different benefits running alongside each other. very unfair in the same way that people on TC can have thousands in savings and not be penalised, so for example could save for their own property wheras those on Uc are penalised for any savings over 6k and exempt from claiming with savings more than 16k.
onthinice · 25/03/2022 22:46

The online calculator shows I'd be much worse off on UC. I'd be down around £200 a month and as a single parent I can't afford that.

BMWqueen · 25/03/2022 23:17

UC Was better for us as they pay your rent etc but tax credits don’t

seekingasimplelife · 26/03/2022 17:35

Do you have savings? CTC is not affected by savings (unless you have significant income from the interest on the savings), but UC takes into account your savings and that can reduce the amount you receive.
Also, unlike UC and WTC, Child tax credit is not dependent on the number of hours worked. Whilst this won't affect you now if you are both FT, could it in the future? Just something to be aware of.

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