End of tax credits, overpayment

[Orangesandlemons77]

I was wondering what will happen with the migration over from tax credits to UC.

Doesn't look like we'll be entitled to UC, possibly as savings cut off is much lower. However we have an overpayment with TC which they are taking off our monthly payments.

What will happen if they tell us we can't claim TC anymore, are they likely to ask for it back at once? Thanks

They’ll let you pay it back on a payment plan over a certain period of time. Set out what you can afford, also they’ll probably want a financial income and outgoings if it’s a low amount

Thanks TheGirlWhoLived

I read that they are giving 12 months leeway for TC migrators with savings.

Where UC is claimed and then awarded under the managed migration process, a ‘transitional element’ as part of the UC maximum amount will provide ‘transitional protection’ where the UC is worth less than the legacy benefits. Where a claimant transfers from tax credits with more than £16,000 in capital, a one-year disregard of the excess (a ‘transitional capital disregard’) will allow her/him to qualify for UC.7

cpag.org.uk/welfare-rights/resources/article/uc-managed-migration-rules

Oh really? I wonder if that might help. Or could of course give the TC the money from the savings perhaps

Bit worried about all of this with the cost of living and now reading in the news they want everyone transferred by 2024.

It's only for managed migrations, not voluntary migrations, so don't jump until you are pushed.

OK thanks, that is really useful to know. Even if it is only for a year it could still be helpful.

Oh, I wonder whether in might be an option for UC to claim all the overpayment back over that year then - or at least reduce it substantially. Or I suppose we could put it aside for the end of the year to have for them, if we can afford it.

I could ask I suppose.

I have no idea, sorry. If you get the choice, I'd hold on to the savings for as long as you can, unless paying your debt brings you under the £16k.

Hi guys! I'm on tax credits,pip and esa. I believed I was on income based esa I find it all so confusing. Does my husbands income affect what esa I get? Also of this has resulted in an overpayment from hmrc, we wud not be in a position to pay a lot per week...can they work a reasonable repayment plan?