Universal credit, change from tax credits

[Orangesandlemons77]

Bit worried about the change to UC next year, on tax credits just now. We have an overpayment which is coming off the amount.

Do you think we will qualify for UC? Apparently the first year they don't have the minimum income floor (DH is self employed) but I'm not even sure what that is? 37 hrs at min wage?

I'm on PIP at the higher rate and ESA (cont based)
DH is self employed averages around 20K a year - also has a chronic illness but doesn't claim PIP / ESA

We have two DC who will be 18/19 and 15/16 (but youngest will be staying on to 18 at school)

I have done an online calculator which seems to say we would be better off on UC because of getting some help with council tax (I think) BUT I'm a bit worried about the conditionality with UC e.g. self employment rules etc and if DH's income goes up and down (which it may well do as he can get paid a lump sum some months and nothing others)

How would this work with UC? Anyone similar?

Whats happening to UC next year? X

Sorry, I have no idea, but there are a lot of very knowledgeable people on here, so a little 'bump' might help.

best of luck, it's not easy x

If you stay on tax credits until dwp tell you that you have to move then you'll get what's called transitional protection. Basically if you would be worse off on uc they will pay a transition element which effectively tops you up to what you receive on tax credits.

Nothing, I meant the change to UC from tax credits, as they are finishing.

Thanks

Ok, thanks.

Does anyone know how it works if a DC is a student as our eldest might be staying at home for university?

Also if there was a large sum one month from self employment (for a few months work) how does this work with UC, presumably it would stop or be zero that month then would you have to start a new claim?

As far as I know no element on UC is protected. If your DH received a lump sum that took him over your personal income threshold for that month (it's different for everyone depending on other benefits received/ childcare/ rent etc) then you would not receive UC that month but would not have to reopen your claim unless that happened 6 months in a row. There's an excellent UC advice group on FB called Universal credit and legacy benefit advice.

I'd also recommend you use a manual calculator for your payments as the online ones are notorious at getting the figures wrong. This site shows you how to calculate entitlement. www.uc-advice.co.uk/calculating-your-universal-credit

Yes minimum income floor is minimum wage X 35 per week (maybe less if he's not expected to work full time but he probably will be)

If one month he earns below that in that assessment period, the UC amount will be calculated/deducted as if he earned the minimum income floor and not the amount he actually earned if that makes sense.

So if he earns £1000 one month but his minimum income floor is £1400, they'll treat it as though he's earned £1400

Unless someone else is claiming for you DH can receive the carer element so there won’t be any work requirements.

If there is another adult in the home there is sometimes a non-dependent deduction, but that won’t apply to you because of the PIP and DC being under 21.

If one month you earn more than £2500 more than the amount that would meaning you received no UC that month the excess is known as surplus earnings and carried forward to the next assessment period. The claim doesn’t automatically close.

No you wouldn't need to start a new claim you'd just have a nil award for the statement for that assessment period. If you have a nil award for 6 months in a row your claim will be closed

OK, thanks, this is all useful. It all seems a bit more complicated than tax credits.

Once he finishes sixth form and goes to Uni then he would come off your Uc claim as he will get student loans to live off. If you rent and will be claiming rent element on Uc then there is no non dependent deduction on your rent element until he turns 21.
If you are in the support group of ESA then you will get the LCWRA element automatically added to a Uc claim.
If you receive standard daily living PIP or above, and your husband provides 35 hours of care to you a week then he can also claim the carers element of UC.
Contributions based ESA continues to be paid separately but is then deducted pound for pound from UC.

Even when DC turns 21 you will not be subject to the non-dependent deduction because you are in receipt of PIP.

Yes of course. Sorry I forgot about this exemption.

So I switched to UC last year and the online calculator said I would get help with council tax, but I don’t, earn to much apparently. My advice would be to save up a bit of money before making the switch. You can take the advance out but obviously needs to be paid back.

Ok many thanks for all of this, it seems it may be OK. Such a worry.

DH also has a long term autoimmune condition but he doesn't claim PIP or ESA for it. He would probably qualify though if it did get worse.

We don't have any housing costs so wonder how that changes things. The mortgage was small and is now paid off.

The turntous calculator says current benefist would be around 1,200 a month but with UC 1,700 a month?

Because of the addition of council tax support / benefit it seems?

Seems strange there is quite a difference.

What kind of difference would there be in terms of commitments with UC e.g. meetings, work coach, diary etc I wonder.

My ESA cont based support group is long term, they have put me in this group which they have switched off reassessments for apparently. So how does this work with UC I wonder.

Thanks, goodness it is quite complex. But this sounds useful. he may well choose to move away for uni just hasn't decided yet, and the cost of living may affect this.

Would the eldest DC's child trust fund affect things? He will have around 12K saved into this to help him with costs.

HIs savings are not counted as your savings if they are in his name.

Not having a housing element means you get a bigger work allowance.

On UC DH couldn’t also receive the LCWRA element as you can only have one per claim. Your LCWRA is automatically added.


Neither you or DH will have work commitments - you because of the LCWRA and DH because he can receive the carer element.

Council tax support isn’t automatically part of UC, you would have to apply to your council for that.

Eldest’s trust fund wouldn’t change anything.

£1700 seems a bit high if you don’t have a housing element.
For UC you would get
Standard element. £525.72
Child element. £290
LCWRA element. £354.28
Carer element. £168.81
Total = £1338.81

DH’s earnings - £573 = Y
Y x 0.55 = Z

£1338.81 - Z - your contributions based ESA = Total UC you will receive

I thought it sounded a lot too. Maybe it included the PIP / ESA, not sure. Well, it sounds like it might be OK provided PIP continues.

It is all such a worry. Can anyone explain about the diary etc and what we would need to do with a work coach, if anything? Many thanks for all the advice it has been reassuring, I have been quite stressed over it all.

I don't really understand why we would get more due to having no housing costs, that seems a bit unfair to those who do have such costs?

So even if both DC went to university and either stayed home or moved away we might still get something? Even if it was a small amount might pay off this overpayment.

You won’t get more for not having a housing element. Your work allowance will be more, but those renting will have a housing element.

If you have LCWRA and DH has the carer element there won’t be any work requirements.

The claim without any DC would be the same minus the £290 child element.