Universal Credit for [merged]

langold

Hi, my husband works full time so when uc comes in and my youngest is five and I have to work part time what,will be classed ad part time hours and will their be child care help. Also these work focused interviews for people with children under five but over one will their be childcare so we can attend

zagfles

BigAunty wrote: »

DWP briefing note - treatment of capital, policy rationale



"People with substantial savings or other capital clearly have sufficient capital to meet their needs – it is right that they should draw on these resources before looking to the taxpayer for support, particularly as many taxpayers themselves have savings well below these limits. While nearly one in three pensioner households have savings in excess of £16,000, only 13% of households with a working age adult in them have this much savings. A typical working age household has only £300 in savings.

1. A £16,000 cut-off with assumed tariff income from savings above £6,000 strikes the right balance between protecting people with modest savings and placing responsibility for their own support on those with substantial capital. We believe that £16,000 is an appropriate level, particularly since fewer than one in five families have higher savings.

Savings intended for mortgage deposits [FONT=Arial,Arial][FONT=Arial,Arial]– We have been asked whether provision can be made for people saving for a home but there are no ring-fenced deposit accounts for savings intended for a mortgage and there is no satisfactory way of confirming future intentions, which would make it impossible to frame an exemption to capital rules on this basis. [/FONT][/FONT]

http://www.dwp.gov.uk/docs/ucpbn-3-capital.pdf

But it then goes on to say there will be transitonal protection for those with savings claiming tax credits:

People with capital of £16,000 or more who are entitled to Tax Credits before migrating to Universal Credit will receive transitional protection to protect their cash income

See also
http://www.dwp.gov.uk/docs/ucpbn-6-transitional-protection.pdf

BigAunty

Good point, though the document seems a bit vague as to the length of the transitional period (i.e. temporary) to ring fence savings from being classed as capital.

zagfles

BigAunty wrote: »

Good point, though the document seems a bit vague as to the length of the transitional period (i.e. temporary) to ring fence savings from being classed as capital.

The transition document says it goes on until either the UC award would have been higher or there's a "significant change in circumstances". It seems to be a fixed cash sum which is the difference between the UC and current award.

So say someone with £30k savings is getting £100pw in tax credits now. Under UC they'd get nothing. So they'd get cash protection of £100pw.

This would continue until there is a "significant change in circumstances" (which isn't defined yet). Maybe a child no longer qualifying because they are too old. Maybe even a new child being born - though this would be a bit silly as this would normally increase the award.

We'll have to wait to see how they define "significant change in circumstances".

confusedmummy

I asked this before but didn't get an answer.

Are benefit rates under Universal Credit going to change?

Surely when it comes in it will be a way for the government to lower benefits that they think are too high at the moment? I know the cap is £26k but surely this is the max of all the combined possible benefits a household could get and within UC, the amounts for previous individual benefits will be reduced?

zagfles

confusedmummy wrote: »

I asked this before but didn't get an answer.

Are benefit rates under Universal Credit going to change?

Surely when it comes in it will be a way for the government to lower benefits that they think are too high at the moment? I know the cap is £26k but surely this is the max of all the combined possible benefits a household could get and within UC, the amounts for previous individual benefits will be reduced?

The graphs in the document show that the bottom half of claimants (income wise) will be better off, the top half will be slightly worse off. See http://www.dwp.gov.uk/docs/universal-credit-chapter7.pdf

thor

zagfles wrote: »

The transition document says it goes on until either the UC award would have been higher or there's a "significant change in circumstances". It seems to be a fixed cash sum which is the difference between the UC and current award.

So say someone with £30k savings is getting £100pw in tax credits now. Under UC they'd get nothing. So they'd get cash protection of £100pw.

This would continue until there is a "significant change in circumstances" (which isn't defined yet). Maybe a child no longer qualifying because they are too old. Maybe even a new child being born - though this would be a bit silly as this would normally increase the award.

We'll have to wait to see how they define "significant change in circumstances".

People with large savings tend to be tories so I think that the ones who will be affected most will be those who have had a drop in income but have managed to keep their savings(perhaps for their senior years when the pension gets scrapped). I can see Cameron/IDS backtracking about the savings limit when they see hordes of their own supporters pitching up at downing Street asking why they have been abandoned merely for trying to save for their retirement.

zagfles

thor wrote: »

People with large savings tend to be tories so I think that the ones who will be affected most will be those who have had a drop in income but have managed to keep their savings(perhaps for their senior years when the pension gets scrapped). I can see Cameron/IDS backtracking about the savings limit when they see hordes of their own supporters pitching up at downing Street asking why they have been abandoned merely for trying to save for their retirement.

What pension will get "scrapped"? If you're talking about the basic state pension there's not a cat's chance in hell it will be scrapped. That would cause riots.

In comparison there'll hardly be a murmur about scrapping of capital rules in tax credits particularly with the transitional relief.

Killmark

zagfles wrote: »

What pension will get "scrapped"? If you're talking about the basic state pension there's not a cat's chance in hell it will be scrapped. That would cause riots.

I think the poster was suggesting that means testing the state pension will be inevitable in the future.

Less workers, higher pensions, people living longer its pretty obvious that it won't be sustainable.

zagfles

Killmark wrote: »

I think the poster was suggesting that means testing the state pension will be inevitable in the future.

Less workers, higher pensions, people living longer its pretty obvious that it won't be sustainable.

There is no chance whatsoever of the state pension being means by any govt which wants any chance of getting re-elected. Besides which it would pretty much destroy any incentive to save for retirement. It's not going to happen. Nobody or organisation of any consequence in politics is arguing for it. All the arguments are the other way.

The Turner report and subsequent proposals by this govt want less means testing in the state pension and a higher basic pension perhaps incorporating SERPS/S2P. It's all well costed and stuff like raising the state pension age will pay for it. If it becomes unaffordable they might raise the age, they might increase tax/NI, they might increase VAT, they might lower pensioners' AA to the same as working age people (which would lower HB, CTB etc and increase incentives to save for retirement).

They won't means test the state pension. Period.