Who isn’t migrating Tax Credits to UC ?

[treedragon]

Received a letter about migrating from Tax Credits to Universal Credit.

A deep dive into seems to show that a huge chunk will be taken due to savings over £16k. It also seems like a lot of hassle trundling into Job Centres.

I have decided not to bother with moving so do the TCs just stop?

Interested to learn who else has decided not to bother??

And DH as the owner/MD would be classified as self-employed, which is an extra layer of faff with UC. He is classed as employed by TC.

Be careful blowing your savings on a few holidays. That could be classed as deprivation of assets I think.

There seems to be a lot of interference with UC. If you’re working either employed or self employed you should be left alone to crack on. UC should just concentrate on the shirkers not bothering to work.

We're not going to claim UC. Currently getting minimal tax credits due to overpayment being claimed back after my husband got an unexpected pay rise.
I'm wondering what happens to the remaining overpayment which was going to be claimed from future years credits. I'm guessing we'll be asked to repay after April when the tax year changes. If anyone knows for sure I'd be grateful.
I'm also assuming that I can just let the tax credits end - I don't need to declare that we're not going to claim UC?

It’s almost like getting people off benefits is the whole point!

You clearly don’t need it, or you’d put up with the hassle of the paperwork. Leaves more money for the people who do need it, win win

My tax credit was reduced to zero about 8 months ago. I have some savings (less than £16k) which is my emergency fund in case I list my job or couldn't work for a few months.

I would probably still be eligible for UC - I still have a school aged child and am a carer for my adult son but the system seems draconian- I'm happy to supply information but I will have to take time out, get hold of paper copies of all my financials, go to the job centre etc etc - I'm working full time as it is. I don't understand why I have to go in to the job centre? I don't even have to have a face to face appointment to get a mortgage or take out a loan. I understand they want to ensure they crack down on fraud but it seems such a clunky system and frankly I don't want to waste precious annual leave on job centre appointments for what will probably only be about £30 a week.

And I don't agree with unfettered access to my bank details. So I'll make do, and if necessary I'll get a second job. I find the UC system incredibly intrusive (I have to manage my disabled son's account for him) so if I can manage without, I will.

I get a little wtc as someone who is self employed and gets enhanced rate pip.
I won't be claiming UC because I just can't cope with the level of intrusion and stress. I've accepted I'm going to be worse off and am planning accordingly.

I'm housebound, I can't work regular hours as my ability to work is dependant on my physical state on any given day. My children are both disabled. My husband is unable to work as we all need varying amounts of help and care. My disabilities are severe enough that my pip is not renewable every three years, it's for an ongoing period, which means they'll check every ten years or so and see if I'm dead yet.

It's humiliating enough already.
I can't jump through the UC hoops too so what we can't afford we'll just go without.

We won't be entitled to UC due to savings, but does the transitional protection mean we will still get the same amount for a year after moving?

We aren't moving to UC but I'm not posting why just for the haters to judge people they don't know and circumstances they aren't living. But you are not alone in your decision.

I'm self employed and a single parent and got around £250 TC.

Colleagues are reporting all sorts of nightmares about what we aren't allowed to claim on expenses, even though we can for HMRC - so we essentially need to do two different accounts.

By the time the minimum floor is added, and because I'm a homeowner, I would get around £40. Attending the job centre every three months would mean closing for a whole day, so costing me £150. So I'd need nearly four months of UC to even break even.

So people saying it's not worth it, doesn't mean we don't need the money, it means the system is an absolute nightmare, intended to make people not want to bother claiming. Instead I'm now working 50 hours a week...

@IncompleteSenten you and your husband would not have to go to the job centre again once ID has been confirmed if you get enhanced PIP and DLA for your children you will both be classed as not having to seek work due to your disabilities and caring responsibilities. I became a single parent a number of years ago and my son then got DLA. I work 24 hours a week from home to meet the children's needs. I have not had any further contact from job centre since I first applied.

Unsure if we are going to go ahead... although I have done my ID checks at the job centre for it all just after Christmas.

DH works 35 HR week, I don't work but studying part time with the OU. We are interested with what calculation they come back with in a few weeks time....it might be worth it, it might not.

We had a letter saying we would soon be changing but didn’t tell me to do anything. We won’t be claiming as I am due some inheritance soon which would mean I won’t be eligible. I’m just going to inform tc when it hits my account and then I guess it will all stop.

Do you have children? I m not sure if it is the same if you don't have children but if one person earns enough to be over the AET a couple has to earn to be light tough the non working one is left alone or should be left alone.

I've got two in primary, two in secondary. I will be seriously hacked off if they expect me to work round a busy family life and studying part time. I have put in a claim for Scottish version of DLA for my health issues. Could take months for a decision on that. Also DLA claim for youngest child awaiting that decision. What a nightmare.

OK I'm confused. Currently on tax credits with too much savings(inheritance not that money ive saved btw). I wasn't going to apply for UC when our tax credits ends but would we still get it for a year? Is this £174 thing a week or a month?

I agree with others, it's a very intrusive process for what it is. We might take the hit until youngest is in secondary school. Will see what happens in a few weeks once I get the calculation.

I think the savings is a bigger issue for the UC including JSA.

The limit is tricky as some peole will have no savings having upgraded to bigger house or have new cars. It wouldnt go far towards the tax and lawyers

You get 12 months grace period transitioning, where they don't count the savings.

You are not 'taxed' on anything. Why should your savings - which are way more than most people can amass - be sacrosant from being used to live on (like people who are not on benefits have to) so the tax-payer can support you.

Do you pay income tax on your emplyment earnings?

I am homeowner and have zero savings when i am working full time and cant have free money, so no i done agree you need savings

My tax credits stopped last august. In my case they just stopped. I also have savings that make me exempt. It's cost me 400 (approx) a month. But that was dropping anyhow as my middle boy left education. Luckily I managed to get a job that pays over a thousand a month more last march so we're doing ok and I've still got my savings which are going to buy us a house. I've had a letter since inviting me to apply but I've just ignored it.

The whole point of the Tax Credits system was to enable people on lower paid jobs to be financially better off. I don’t see employers queuing up to raise pay so no one needs such top ups.

also WTC was aimed at disabled workers so they could work some hours and receive a top up. I can’t see any employers agreeing to pay a disabled worker 40 hours pay for say 18 hours work. Disabled people generally have higher overheads and £16k in savings isn’t that much when you factor in needs like that.

also the government keeps harping on that people should be saving for their old age. UC certainly to me flies in the face of that mantra with some ridiculous ban on savings. How does that encourage prudence? All it makes me want to do is blow all my saving on holidays I’ve gone without.

@CeeJay81

i can’t get a definitive answer but it seems that if you migrate under this so called transitional
protection if you have savings of say £60,000 you can migrate over for one year but they deduct £174 a month because your savings are £16,000. They seem to see it that you have £16,000 and no more. After a year you lose all the UC due to savings unless you dispose of all the savings and get it below £6,000. After £6,000 to £16,000 the take UC off you almost like a tax because you have savings.

The poorer you are the more benefits you can claim. It is paying to be destitute.