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Original poster

Tax credits or universal credits

40 replies

littlebeebop · 12/05/2022 21:04

Has anybody made the switch from tax credits to universal credits and been worse off?

I've done the calculators and they said I'd get quite a bit more from universal but I know these calculators are not alway accurate and don't want to stitch myself up!

Tax credits over paid me and deducting it from payments so I'm already really struggling atm!

Thanks

OP posts:
MondeoFan · 12/05/2022 21:12

Not sure but I’d like to know this too. Got my renewal letter yesterday and it said I can change over earlier if I want to as everyone will be changed over in 2024

SoggyPaper · 12/05/2022 21:14

Most people will be better off on UC. Not everyone, but a clear majority. It’s likely the calculator is right.

They will be forcing the remaining legacy tax credits claimants over soon enough anyway.

Original poster
littlebeebop · 12/05/2022 21:15

MondeoFan · 12/05/2022 21:12

Not sure but I’d like to know this too. Got my renewal letter yesterday and it said I can change over earlier if I want to as everyone will be changed over in 2024

This is what made me look, it said about being better off and the calculator says so! Just don't want to do it and end up with even less! 😬

OP posts:
Original poster
littlebeebop · 12/05/2022 21:16

SoggyPaper · 12/05/2022 21:14

Most people will be better off on UC. Not everyone, but a clear majority. It’s likely the calculator is right.

They will be forcing the remaining legacy tax credits claimants over soon enough anyway.

thanks!! May have to brave the switch!

OP posts:
Lou22000 · 12/05/2022 21:23

When I did the calculator it shown I would be worse off on UC. I also had a letter from them stating they have underpayed me as I never declared my maternity statutory pay so I had to deduct £7k SMP off my yearly salary. So not sure what rebate I will get back? They must owe me money

MondeoFan · 12/05/2022 23:07

Following with interest. Calculator says I’ll be £37 week better off. I’m scared to switch incase I get less than tax credits, then I’ll think why didn’t I wait until I was forced to switch over.

Babyroobs · 12/05/2022 23:21

Tax credits overpayment would continue to be paid from UC if you do switch.

Danikm151 · 13/05/2022 15:34

A lot of working people who rent are much better off on UC.
It also reduces the chances of having to pay back an overpayment as the amount is calculated each month based on what you earn in the assessment period, rather than over the year like with tax credits.
UC also covers more towards childcare that tax credits (up to 85% rather than 70%)

FabulousKilljoys · 13/05/2022 15:36

If you can afford to not need the advance payment while you wait for them to process your claim, then yes you'll be better off. If you'll need the advance, then for a single person you'll pay that back at £81 p/m and end up with less than you had on tax credits for a substantial amount of time.

TheCanyon · 13/05/2022 19:19

We're much worse off. I think because of being on esa hopefully temporarily, well I bloody hope so. Esa is taken off and the benefit cap means we're utterly fucked.

Snuzzle · 13/05/2022 21:03

I’ll be much worse off too so waiting until I’m forced to switch. According to the calculator I’ll lose £150 a month and simply can’t afford that at the moment

FabulousKilljoys · 13/05/2022 21:06

I looked into it thinking perhaps it would be better if I took the plunge before the forced switch, but all it's done has made me dread the switch over even more as I'll be down over eighty quid per month which is a hit I can't afford to take.

StuckInTheMiddleOfNowhere · 14/05/2022 16:25

We were 700 pm better on UC than TC.
On a standard month.
When work have messed up figures we manually submit each month and its been adjusted.
Never any issues

Original poster
littlebeebop · 15/05/2022 09:27

Babyroobs · 12/05/2022 23:21

Tax credits overpayment would continue to be paid from UC if you do switch.

Would they take the same amount as they are taking now?
If they would and I got what the calculator is telling me, I'd still be getting more than I was before 🤯

OP posts:
megletthesecond · 15/05/2022 09:32

I'm dreading the change. It looks like I'll be expected to work full time when I currently work 3 days. I assume I'm going to take a massive financial hit unless I can get DLA for my youngest teen.

Babyroobs · 15/05/2022 13:10

megletthesecond · 15/05/2022 09:32

I'm dreading the change. It looks like I'll be expected to work full time when I currently work 3 days. I assume I'm going to take a massive financial hit unless I can get DLA for my youngest teen.

If your kids are secondary school age you will be expected to look to be earning 35 x nmw per week. In reality they do very little to enforce this in my experience.

Saladd0dger · 15/05/2022 13:16

We are massively better off on uc than tax credits. Go on universal credit essentials website and accurately work out your award each month

BlueBeeSpots · 15/05/2022 13:17

I am a single parent to 2 children under 7. I made the switch back in October as I was moving home and my rent was to increase by £150ish month. I was afraid to transfer over but it was all absolutely fine and now I get more help with my rent.

One word of advice would be to not refresh any pages while you’re filling in the application form. It saves automatically. I entered childcare details and refreshed (for some reason) and ended up with an error page. Every time I tried to log back on to complete the application it ended up taking me back to that error page - I had to ask UC to deleted my application so I could start a fresh one

Seashell0405 · 15/05/2022 13:41

This reply has been withdrawn

This message has been withdrawn at the poster's request

Seashell0405 · 15/05/2022 13:42

Oh I think I might have accidentally commented on someone’s post rather than starting a new one

Babyroobs · 15/05/2022 14:08

This reply has been deleted

This message has been withdrawn at the poster's request

You won't go to prison but yes they may see that you deprived yourself of capital and then claimed benefits soon after. However I guess you could argue that you didn't know at that point that you would split soon after ? had you not given him that money then if you had had over 16k of savings you would not have been able to claim any Uc at all. I guess the way they may see it now is that you have paid a large sum of money into that house of which you may have a claim on if you split again. I guess all you can do is try to argue that you didn't think you would split when you paid that money in ??

Babyroobs · 15/05/2022 14:11

Deprivation of capital is a bit complex and each case is looked at individually by a decision maker.

lollipoprainbow · 15/05/2022 14:16

How much savings are you allowed to have on UC does anyone know?

SoggyPaper · 15/05/2022 14:17

lollipoprainbow · 15/05/2022 14:16

How much savings are you allowed to have on UC does anyone know?

I think it’s £6k.

Dontstoprunning · 15/05/2022 14:18

I'm on tax credits and the calculators have said I'd be better off on UC but my issue is that I get paid 4 weekly so on one assessment period a year I'd be paid twice from work.
I wouldn't know how to budget for this, it confuses me to think about it.
I do think UC would be better for me as my hours fluctuate monthly so it would be good to have my help based on actual earnings.
If I were you I would wait to be moved over though, I know a lady who works in the Job center and she said she would give personal advice to wait even though the professional advice she's told to give is to switch.

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