information about universal credit

langold

Hi I was hoping someone can enlighten me about this universal. Credit. I'm a stay at home mum my husband works fifty plus hours a week nights . I have three children five and under. Will I need to work once my youngest is five will it affect the little tax credits we get now. Any information will be greatly received thanks

Sixer

It's not fully decided yet. However, conditionality will be extended. See the PDF on extending conditionality here:

http://www.dwp.gov.uk/policy/welfare-reform/legislation-and-key-documents/welfare-reform-bill-2011/universal-credit-briefing/

langold

Which part is that please

Sixer

11 Extending conditionality under Universal Credit to working claimants: setting a new conditionality threshold

langold

I still dont understand it

Sixer

It's complicated! Each household will have different thresholds. Whether or not they expect you to look for work will be set at an amount of income you're getting.

Couples with children of 13 or over: 2 x National Minimum Wage x 35 hours = £425.60
Couples with children under 5: 1 x National Minimum Wage x 35 hours = £212.80
Couples with children aged 5-12: 1 x National Minimum Wage x 35 hours + 1 x National Minimum wage x school hours (they haven't set the 'school hours' number yet) = TBA

Note these are only proposals, not necessarily what will actually happen. But if it goes ahead, UC claimants who don't earn their threshold amount of money will be expected to look for work under the same conditions and sanctions regime as JSA claimants do now.

melly1980

Right. Lets see if Ive got this right (which is probably not)

They are talking about minimum and maximum disregards - this to me means that they havent decided yet and the disregard will be somewhere within this range.

The disregard itself - is this just a point that the taper will cut in?

As for what they are tapering from - at the moment the current tax credits system gives you x amount per child, x amount for being a couple etc etc then tapers this away. What are the gross amounts given before the taper in UC?

[Deleted User]

I wouldnt worry about UC just yet,its far from a done deal

zagfles

woodbine wrote: »

I wouldnt worry about UC just yet,its far from a done deal

I think it is - it's more a case of when rather than if. Last I heard even Labour support the UC in principle, though of course have whinges about certain aspects of it.

zagfles

melly1980 wrote: »

Right. Lets see if Ive got this right (which is probably not)

They are talking about minimum and maximum disregards - this to me means that they havent decided yet and the disregard will be somewhere within this range.

The disregard itself - is this just a point that the taper will cut in?

As for what they are tapering from - at the moment the current tax credits system gives you x amount per child, x amount for being a couple etc etc then tapers this away. What are the gross amounts given before the taper in UC?

No, the disregard depends on how much housing help is claimed. Someone claiming no housing costs would get the max disregard - which seems to be extremely high - £7250 for a couple with 2 kids. The disregard is reduced if housing costs are claimed.

So you can earn up to the disregard and not get your UC reduced, then it'll be reduced at 65% of net income above that.

Don't think the actual elements of UC have been decided yet, but imagine they'll be similar to IS/JSA, CTC, HB etc as that's what they're replacing. So a couple might get about £5000, plus about £2500 per child, plus any HB/LHA.

melly1980

zagfles wrote: »

No, the disregard depends on how much housing help is claimed. Someone claiming no housing costs would get the max disregard - which seems to be extremely high - £7250 for a couple with 2 kids. The disregard is reduced if housing costs are claimed.

So you can earn up to the disregard and not get your UC reduced, then it'll be reduced at 65% of net income above that.

Don't think the actual elements of UC have been decided yet, but imagine they'll be similar to IS/JSA, CTC, HB etc as that's what they're replacing. So a couple might get about £5000, plus about £2500 per child, plus any HB/LHA.

Cheers

So from my perspective, I would be likely to get a similar gross amount but tapered away at a much larger rate thus removing it completely. after that there are no real pension options because they count only 50% of it anyway?