Universal Credits To Working Tax Credits

A_Flock_Of_Sheep

I have received information that Working Tax Credits and Child Tax Credits will become part of the Universal Credit Scheme.

Currently for tax credits only income is used to calculate entitlement value. Under the Universal Credit scheme income will be used in conjunction with capital.

If you are a claimant of Tax Credits and are hoping to go over to Universal Credit and have savings of £16,000 or more then you wont get a bean. Savings over £6,000 begin to impact on what you are paid too up to the £16,000 cut off point.

BigAunty

Apparently there is some kind of transitional protection but I don't know the details.

A_Flock_Of_Sheep

BigAunty wrote: »

Apparently there is some kind of transitional protection but I don't know the details.

Ahh right the information I have mentions nothing of that. I thought that people would have to go and do a big spend up and/or hack up the floor boards. :D

A_Flock_Of_Sheep

It may be this:

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

enabledebra

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

Some more detail has been published on how the protection will work in practice.

NB- the protection hasn't been confirmed by regulations yet.

starM

Abit worrying -

I am working full time at income of £18800 - wife is not working. I also get rental income 2011/12 was £2500. The property I rent is in value around 125k with 66k mortgage outstanding. So I have capital of 59k. We jointly have savings in ISA around 21k and other savings account totaling 6k.

Because of my savings and capital in property will effect my entitlement to Universal credit? I am currently getting £300 every 4 weeks from tax credits.

Regards

princessdon

starM wrote: »

Abit worrying -

I am working full time at income of £18800 - wife is not working. I also get rental income 2011/12 was £2500. The property I rent is in value around 125k with 66k mortgage outstanding. So I have capital of 59k. We jointly have savings in ISA around 21k and other savings account totaling 6k.

Because of my savings and capital in property will effect my entitlement to Universal credit? I am currently getting £300 every 4 weeks from tax credits.

Regards

That is why the changes are being brought in, it's not really fair you getting benefits when you don't need them.

starM

princessdon wrote: »

That is why the changes are being brought in, it's not really fair you getting benefits when you don't need them.

At the age of 25. I have worked hard to save money and also be on property ladder. I know people of my age who have not saved any money but spent money cars, mobile phones etc they will be easily entitled to these benefits - strange.

Dunroamin

princessdon wrote: »

That is why the changes are being brought in, it's not really fair you getting benefits when you don't need them.

Looks like there are going to be quite a few improvements with UC!

princessdon

starM wrote: »

At the age of 25. I have worked hard to save money and also be on property ladder. I know people of my age who have not saved any money but spent money cars, mobile phones etc they will be easily entitled to these benefits - strange.

And?

I worked since 14 (and paid tax at that age). If I was made redundant I'd get no benefits because of savings and capital. Why should you?

Why do you think tax credits are not benefits? they are still benefits - Ie you need state help to raise your children as you cannot afford to do so.

I am not unsympathetic - I too have saved and see your logic and personally I think it's shameful that those who save get shafted in every direction and those who squander get help, but the reality is that you don't need the money and you can support your family instead of tax payers like me. Harsh? maybe - but it's truthful.

If you lost your job, you'd not get other benefits as you have means to support yourself. Tax Credits have long been something people see as a wage top up and not a benefit - They are indeed a benefit and are now to be means tested.

Eg - If someone who had £1m in the bank decided to work part time - should they be entitled if they made the decsion to work less hours with that income? The moral answer is no.

As above - whether I agree or not isn't the point - you (and I guess me if ever made redundant) is the reason they are doing this. It's been complained about over and over again that people 1p over the Tax Credit limit who have zero savings and high childcare costs are not entitled whilst familes make lifestyle choices of 1 working parent and have substantial savings get them.

On the positive - at least your CB is staying - some people are losing theirs and this time next year it could be CB that is savings based too!