Tax credits v universal credit

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Fredismyworld
Fredismyworld Posts: 1 Newbie
in Benefits & tax credits
Hi, new to all this so apologies if this is covered elsewhere!
I have not long started claiming tax credits (a week before my area changed to UC)! I'm entitled to £340 every 4 weeks (I work 36 hours and pay for childcare after school). I applied for housing benefit and council tax help (25% discount given) but was turned down for housing benefit. I was feeling curious earlier and did 2 different benefits calculators for UC and both come back the same and for almost £250 per month more than what I get with tax credits now. I'm confused as to why there is a difference and how come I'm worse off with tax credits? Should I apply for UC instead?
Thanks for reading/responses x

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  • Neil_Jones
    Neil_Jones Posts: 8,913 Forumite
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    Generally you will be migrated to UC at some point in the next two years.
    Remember that UC rolls various benefits into one so the estimate may be out as certain assumptions may have been made.

    The 25% council tax discount (which I presume you mean that you live alone) is irrelevant, you get that regardless. Depending on your band this can knock anywhere from £250 a year to, I suppose best part of £600 off the bill if you're lucky enough to live in a band H property.

    Also housing benefit is means tested and you get nothing for it if you have over a certain amount, think its £6k in savings, as opposed to UC where the cut-off is £16k but its reduced the more you earn and the fact its capped a month.
  • Alice_Holt
    Alice_Holt Posts: 5,949 Forumite
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    Neil_Jones wrote: »
    Also housing benefit is means tested and you get nothing for it if you have over a certain amount, think its £6k in savings,.....

    No, HB cut -off is £16k of capital / savings.
    http://www.welfarerights.net/benefits-guides/Housing-Benefit
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • Neil_Jones
    Neil_Jones Posts: 8,913 Forumite
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    Which contridicts gov.uk @ https://www.gov.uk/housing-benefit/what-youll-get
    How much [Housing Benefit] you get depends on:

    ... (amongst other things)
    your household income - including benefits, pensions and savings (over £6,000)
    [both for private and council/social tenants]
  • Ames
    Ames Posts: 18,459 Forumite
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    Neil_Jones wrote: »
    Which contridicts gov.uk @ https://www.gov.uk/housing-benefit/what-youll-get

    Below 6k you get full housing benefit.

    Between 6k and 16k housing benefit is reduced by £1 a week for every £250 or part thereof (unless you get another means tested benefit such as income related JSA or ESA in which case you get full HB and the income related benefit is reduced).

    Above 16k you get no benefit.

    (Above is for working age claimants, it's slightly different for pensioners).
    Unless I say otherwise 'you' means the general you not you specifically.
  • Alice_Holt
    Alice_Holt Posts: 5,949 Forumite
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    edited 13 November 2017 at 11:28PM
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    Neil_Jones wrote: »
    Which contridicts gov.uk @ https://www.gov.uk/housing-benefit/what-youll-get

    No it doesn't.
    I'm afraid you have given inaccurate info in post 2, but seem unwilling to accept my correction that the capital limit above which HB is not payable is £16k not £6k

    The site I linked to states:
    "Savings over £16,000 usually mean you will not be able to get Housing Benefit, although this £16,000 limit does not apply if you or a partner get Pension Credit Guarantee.
    Savings over £6,000 (£10,000 for Pensioners) will usually affect how much Housing Benefit you can get."

    And the gov.uk site you have linked to says:
    "How much you get depends on:
    - your ‘eligible’ rent
    - if you have a spare room
    - your household income - including benefits, pensions and savings (over £6,000)"

    It does not say - if you have savings of over £6k we will not pay you HB.

    Look at the Eligibility Page of the gov.uk site you linked to. This states:
    "You may get Housing Benefit if:
    - you pay rent
    - you’re on a low income or claiming benefits
    - your savings are below a certain level - usually £16,000"
    https://www.gov.uk/housing-benefit/eligibility

    Between £6k & £16k a tariff income of £1 per £250 of savings over £6,000 is added to your actual income for the HB calculation. Edit: (Ames explains this better in the post above)

    I hope this makes it clearer for you.
    There is no contradiction between the two links. I'm afraid you have simply misunderstood the information on the gov.uk site.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
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