Any point challenging a Universal Credit ruling?

[Saltsutcliffe]

Hi I am wondering if anyone can advise. I recently got a letter telling me I have a few months before I need to migrate to Universal Credit. I am single mum with two children below 16 and our family lives on a very low income - about 6 grand a year from my p/t work and I also get some income from a rental property - about 12 grand a year. The rental property has a very large buy to let mortgage on and a little equity (over 16K).

Up until now I have had Tax Credits and Working Tax Credits which fluctuate between 500 - 700 a month. I am really really struggling in the current climate.

I have researched the UC guidelines and I am fairly sure I will not be eligible given I have equity beyond 16 K. I am really worried. About 10 years ago I decided to go the buy-to-let rental property route as I don't have a pension and I thought this would be a good alternative and would give me some income while bringing up the children.

I think I will have a year to sort things out before UC ends totally because of the 'transition' element built into forced migration but I think it is really going to be hard for us after this as we are struggling so much already. I would really struggle to sell this property in the current climate as the property has problems and if I do I then lose our main family income.

I know I am lucky compared to some but I am shocked that UC is imposing such massive changes on families in vulnerable situations without a longer transition period.

My main reason for posting is I just wondered if anyone has experience of challenging the UC rules or lengthening the transition element and if there is any point trying?

Thanks,

Sorry you are facing this. Short answer is I very much doubt there is any point challenging this. It's been on its way in for years. Does your letter actually state that you will qualify for transitional payments for a year? My understanding is that if you don't qualify for UC due to savings then you just don't get anything and the tax credits end after the 3 months notice. I'm in a similar position to you but haven't had the notice yet.

I realise this may be hard for you. But I don't know any vulnerable families with a buy to let mortgage bringing in £12k a year, and this with equity in the property as well. Which is presumably on top of your own residence?

So you earn about £500 a month - so is that about 10 - 15 hours work each week? Plus £12,000 pa from the rental property. And then £500 - 700 pm in benefits? That's at least £2,000 per month which is more than many families have coming in.

Sorry but benefits aren't there to help you save for your pension. Can you not increase your working hours?

You will need to up your hours to cover the shortfall

You get from your rental far more than UC suggest an unemployed person can exist on, £343 a month.

You might find they'll want to know why you're working part time whilst struggling too. They'll likely expect you to up hours or find a second job and might even expect you to meet with a coach regularly to 'help' you earn more.

How old are your children? By 'below 16' are they in secondary school?

Having a buy to let property whilst working minimum hours and expecting benefits to top your income up is unreasonable.

As a landlord you should have sufficient funds to maintain your property and deal with empty periods, cover insurance, safety checks etc.

You should sell up and increase your hours of work.

OP are you missing a chunk of information from your post about your work situation? I would say your set up is quite unusual. Can you give more info on why you work part time and how old the DCs are? Would you have childcare costs you need to cover if you worked more?

Sell the property.
How old are the children? How many hours do you work?

12k is what I earn at work and my UC top up is the same as you're getting. UC will expect you to work more hours.

U16 children is not babies so no reason to not work more...unless you're going to dripfeed and say 1 has SEN etc etc.

Having a buy to let property whilst working minimum hours and expecting benefits to top your income up is unreasonable.

This. Its absolute madness that you get benefits to support your part time work under these circumstances.

I don't think UC are going to bend the rules for you.

16k equity is irrelevant - it's over 16k savings that you lose entitlement.

It matters because it's a second property.

Many thanks for your advice everyone who has posted. I just don't know how UC works having been on Tax Credits for some years and it's hard to find someone to talk to from DWP.

Hi all just had the migration letter to go from taxcredits to universal credit.i work part time 20 hours have son at college and health issues I don't cliam for.i was told what a great system it is waited five weeks got what I thought we get every month.until second payment I got 54.00 because the assement period goes from my last month wage day 28th tl this months wages so basically universal credit think I live on double my pay a month.ive tried phoning and leaving messages as it looks like every month it look like I get two lots of wages.all I know I belive is my work coach should have made sure my payments where allocated to the right months.im waiting for the right person to look at this as you can't change the assement periods I really don't know what to do anymore.so heads up to the single parents who work hard enough to look after there kids home and job.good luck in this new unfair system.

My advice is to contact Help to Claim, they can explain it all and advise you.
https://www.citizensadvice.org.uk/benefits/universal-credit/claiming/helptoclaim/

Unfortunately investing in a buy to let property instead of a pension was a poor decision. In the longer term you need to sell the property and put a decent chunk of money in a pension.