need advice re universal credit

zagfles

mrsspendalot wrote: »

If you're anything like me, you will have read the 'scaremongering' stories in the paper and thought 'what??!!!!' ... they never do make the ins and outs clear.

Yes, there've been loads of scare stories in the papers written by journalists who either don't understand the proposals, or who use very selective circumstances to highlight a worst case scenario, to get a good headline or even for political reasons.

Same with the tax credits changes - headlines screaming FAMILIES ON 25K TO LOSE TAX CREDITS, but when you read the small print this applies just to families with one child, no childcare costs, no disabilities, working less than 30 hours etc. Ie only applies to a small minority of families.

I suppose a headline TAX CREDITS TO RISE FOR SOME AND FALL FOR OTHERS or UNIVERSAL CREDIT WILL NOT CHANGE MUCH FOR MOST PEOPLE would be too boring

zagfles

Mum-2-Be wrote: »

I'm still a bit confused guys sorry!

So if a single parent gets to the stage of their child turning 5 they go from IS to JSA/ESA and need to look for work in order to continue with their HB and tax credit claims etc

But a couple where for example the dad earns over £20,000 the mum can stay at home and still receive her tax credits and apply for HB help but will not be allowed to claim IS and not be placeed under any conditions to look for work?

Hope that all makes sense!

That's right, though of course the SAHM will get far less than the single parent looking for work.

Tigsteroonie

Mum-2-Be wrote: »

I'm still a bit confused guys sorry!

So if a single parent gets to the stage of their child turning 5 they go from IS to JSA/ESA and need to look for work in order to continue with their HB and tax credit claims etc

But a couple where for example the dad earns over £20,000 the mum can stay at home and still receive her tax credits and apply for HB help but will not be allowed to claim IS and not be placed under any conditions to look for work?

Hope that all makes sense!

However if the dad earns over £20,000, the chances of them being entitled to HB is very slim, similarly they would be over the threshold for whatever element replaces WTC.

Jowo_2

How much of the proposed rules for how the Universal Credit will operate are provisional and how much of it is already set in stone?

The proposed changes for those in self-employment are causing a stir and people can't understand how it could be administered and the official documents are so high level at the moment which doesn't help. For example, the DWP document clearly aims to treat the self-employed as if they earn the NMW, whether or not their business profit reaches it.

It's good to get hold of the actual DWP documents to get a grip on the changes but I do wonder how much will be changed from this initial outline.

christiansmummy

Will the bit if ctc i get at the moment go down , will we keep cb?

zagfles

Jowo wrote: »

How much of the proposed rules for how the Universal Credit will operate are provisional and how much of it is already set in stone?

The proposed changes for those in self-employment are causing a stir and people can't understand how it could be administered and the official documents are so high level at the moment which doesn't help. For example, the DWP document clearly aims to treat the self-employed as if they earn the NMW, whether or not their business profit reaches it.

It's good to get hold of the actual DWP documents to get a grip on the changes but I do wonder how much will be changed from this initial outline.

None of it's set in stone as the bill hasn't gone through parliament yet. And even when it does it will be amended by budgets etc.

Re the SE, I think this is to avoid current problems in tax credits where someone claims to be self employed but has no real intention of earning proper money through it - just to get WTC etc and not have to sign on. Startups will be hit, maybe they'll change the rules to allow a period before they expect the business to become profitable, or some other help for startups not through the benefits system.

And let's face it - there are high levels of fraud amongst the self-employed not declaring their full income, or claiming for personal spending as business expenses etc. The incentive to do this used to be mainly about tax and VAT avoidance but increasingly tax credits savings come into it. Which is hardly surprising, if someone makes £100 profit from a job the temptation to pocket it all rather than paying the VAT man £17, the tax man £17, losing £35 of tax credits, then maybe £25 in HB/CTB and being left with just £6 of it who wouldn't be tempted!!

zagfles

christiansmummy wrote: »

Will the bit if ctc i get at the moment go down , will we keep cb?

Re CTC the UC white paper says it'll provide about the same level of support as current benefits & tax credits.

Re CB, this will be separate from UC and is affected by the current plan to scrap it for higher rate taxpayers (ie earning over 42.5k currently) in 2013. But I have my doubts that this will ever happen (like Gordon Brown's plan to tax it for higher rate taxpayers).