Universal Credit

MissMoneypenny

zagfles wrote: »

Work or be seeking work. Unlike WTC where you have to be working certain hours to get it, under UC you only need to seeking work.

Under UC: 'seeking work' is as job seekers have to do now; with all the extra requiements such as attending the job centre and work providers schemes too. There will be no more just filling a form in once a year and then getting the benefits paid into their account every 4 weeks with no requirement to attend the job centre; as happens under tax credits now.

Under WTC, there was no requirement to earn a mimimum amount per week; just the declaration from the claiment that they were doing these hours even if they only earned £5 a week: then tax credits just made up their lost wage. This anomaly is being corrected under UC and there will be minimum earnings imposed on the claimant.

zagfles wrote: »

Plus under UC you can choose not to bother seeking work, and be treated as if you're earning whatever hours they expect you to work times the NMW. So most people with children will still be able to get some UC even if they don't want to seek work.

But under UC they won't get extra benefits for chosing not to work; which is what happens under tax credits now. Under UC, if the claimant chooses not to meet the minimun earnings or attend the job centre and work provider schemes, they will get less benefit money, not more. Plus these people will still have the less benefits problem that some tax credits claimants have now, when their child leaves home/leaves education.

carebear13

not accurate i would say -it seems to be incapable of adding up 2 incomes and coming out with the right answer.

Hmm71

Does anyone know what impact UC will have on State Pension and pension credit? The calculator has nowhere to put in those amounts so I don't really know how my household will be affected.

My husband is retired and getting both state pension and pension credit but I'm still of working age so it was a bit tricky to get a proper estimate of UC.

I'm hoping to be back in full time employment before UC comes in anyway so we might not be affected at all.

MissMoneypenny

Hmm71 wrote: »

Does anyone know what impact UC will have on State Pension and pension credit? The calculator has nowhere to put in those amounts so I don't really know how my household will be affected.

Universal Credit doesn't seem to be replacing the pension credit benefit. Just the following benefits:-

It will be launched in 2013 and will replace:

• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance
• Income Support
• Child Tax Credits
• Working Tax Credits
• Housing Benefit.

http://www.dwp.gov.uk/policy/welfare-reform/universal-credit/



Benefit changes will not impact on state pension. If a person reaches state pension age, then they claim whatever state pension they have accured, in their own right.

On pension credits, I doubt it will affect those already claiming, but I read on this site that in future, both of the couple will now have to be of state pension age to be able claim full pension credit. I'm sure someone will correct me if that is wrong.

zagfles

MissMoneypenny wrote: »

Under UC: 'seeking work' is as job seekers have to do now; with all the extra requiements such as attending the job centre and work providers schemes too. There will be no more just filling a form in once a year and then getting the benefits paid into their account every 4 weeks with no requirement to attend the job centre; as happens under tax credits now.

Under WTC, there was no requirement to earn a mimimum amount per week; just the declaration from the claiment that they were doing these hours even if they only earned £5 a week: then tax credits just made up their lost wage. This anomaly is being corrected under UC and there will be minimum earnings imposed on the claimant.

Yes. Although tax credits have been clamping down on the ebay sellers/hobby job types.

But under UC they won't get extra benefits for chosing not to work; which is what happens under tax credits now. Under UC, if the claimant chooses not to meet the minimun earnings or attend the job centre and work provider schemes, they will get less benefit money, not more. Plus these people will still have the less benefits problem that some tax credits claimants have now, when their child leaves home/leaves education.

In general they'd nearly always get more in UC than they would have in tax credits even if they choose not to meet the conditionality rules. It's other benefits which could lose out on eg housing.

For instance, a single parent with two primary school aged children may be expected to seek 20 hours work under UC. If she chooses not to under UC she'd be assessed as if she earned 20xNMW ie 6.19*20*52 ie 6438pa.

Without housing costs, this is within the earnings disregard so she'd get max UC anyway, £802.26pm ie £9627pa. (The earnings disregard is very big if no housing, about £9k for a single parent).

Under tax credits, she'd get £5925. So much better off under UC.

Surprisingly, even when housing costs are added in she is better off under UC. Using £470.55pm (2-bed north west rate)

Under UC, she'd get £12840.

Under HB/LHA plus CTC she'd get £11572.

(If she complied with the conditionality rules it'd be £15252 under UC and £15264 under JSA/HB/CTC - ie pretty much the same)

Plus under UC she could get a job up to 20hrs min wage and keep every penny of it, no tax, NI or loss of UC.

Sixer

MissMoneypenny wrote: »

Under UC: 'seeking work' is as job seekers have to do now; with all the extra requiements such as attending the job centre and work providers schemes too. There will be no more just filling a form in once a year and then getting the benefits paid into their account every 4 weeks with no requirement to attend the job centre; as happens under tax credits now.

I think you may be disappointed about the level of attendance/checks under conditionality. There will be tens, if not hundreds, of thousands more claimants subject to conditionality - and fewer staff to deal with them. Additionally, the aim is to have most interaction done online - to include evidence of jobseeking.

1) people will find ways around it - how hard would you find it to "pretend" you'd been online jobseeking for more time than you actually had?!

2) many people will probably simply be issued with monthly, or even quarterly, appointments, much as "back to work" interviews happen now.

Not saying this is good or bad - just saying your glasses may be a little bit rose-tinted to your POV here, Miss M. There simply isn't the capacity to add another gazillion people to Jobcentre queues. And the aim is to get rid of the Jobcentres altogether eventually, anyway.

MissMoneypenny

zagfles wrote: »

Yes. Although tax credits have been clamping down on the ebay sellers/hobby job types.

UC's mimimum earnings will take care of the others claimants who claim to work long hours for less than minimum wage.

zagfles wrote: »

For instance, a single parent with two primary school aged children may be expected to seek 20 hours work under UC

I thought I had read on a forum that UC was going to be 16hours per week now for a single parent with primary school children?

zagfles wrote: »

Plus under UC she could get a job up to 20hrs min wage and keep every penny of it, no tax, NI or loss of UC.

Isn't that the whole idea of UC; that people will have an incentive to work now? Under the old benefit system there was little incentive to work because of their loss of benefits. Then under tax credits, when the children left home/education, the parent/s are stuck in poverty with little to none, work experience and no benefits to replace their lost child tax credits.

Under UC there is encouragement to work and increase their work hours as the child is in senior school. By the time their child leaves education, the parent will be on a fairly good wage and won't get the shock of having to live on a lot less benefits; as happens with child tax credits now.

MissMoneypenny

Sixer wrote: »

Not saying this is good or bad - just saying your glasses may be a little bit rose-tinted to your POV here, Miss M.

Universal credits are there to help people back into work, increase their work hours (earnings) over time and not be living on the poverty line when their children have left education . Plus when we support ourselves, we get a feeling of self worth and self confidence. UC is not the punishment that you seem to see it as.

MissMoneypenny

Sixer wrote: »

I think you may be disappointed about the level of attendance/checks under conditionality. There will be tens, if not hundreds, of thousands more claimants subject to conditionality - and fewer staff to deal with them. Additionally, the aim is to have most interaction done online - to include evidence of jobseeking.

There simply isn't the capacity to add another gazillion people to Jobcentre queues.

Universal Credit Regulations 2012
For the meeting of the Social Security Advisory Committee on Wednesday 13 June 2012

215. However, some claimants may already have an adequate level of earnings. Other claimants may – because of their particular circumstances and capability – be unable to meet any work related requirements. Such claimants will be outside the Universal Credit labour market regime and will fall into the “no work related requirements” group. Detail on who falls into this group is set out below.

216. All other claimants will be subject to work related requirements intended to help them move into work, progress in work or prepare for work in the future. There are four basic types of work related requirement that can be imposed:

• Work-focused interviews: attend periodic interviews to discuss plans and opportunities for returning to work (immediately or in the future).
• Work preparation: actions to prepare for work – such as attending training courses, preparing a CV or taking part in the Work Programme.
• Work search: take all reasonable action and any particular specific actions to find work – such as applying for suggested vacancies or registering with a recruitment agency.
• Work availability: be available and willing to immediately take up work.

http://ssac.independent.gov.uk/pdf/uc-draft-regs-2012-memorandum.pdf

Has UC changed since this? There doesn't seem to be any separate requirements for those who use to claim Job Seekers and ended up on Universal Credits compared to those that use to claim Tax Credits and ended up on Universal Credits. They all seem to have the same conditions: unless I am reading it wrong?

zagfles

MissMoneypenny wrote: »

I thought I had read on a forum that UC was going to be 16hours per week now for a single parent with primary school children?

Quite possibly, don't think this is finalised yet.

Isn't that the whole idea of UC; that people will have an incentive to work now? Under the old benefit system there was little incentive to work because of their loss of benefits. Then under tax credits, when the children left home/education, the parent/s are stuck in poverty with little to none, work experience and no benefits to replace their lost child tax credits.

Under UC there is encouragement to work and increase their work hours as the child is in senior school. By the time their child leaves education, the parent will be on a fairly good wage and won't get the shock of having to live on a lot less benefits; as happens with child tax credits now.

Yes. There will much greater incentive to work under UC, but people who choose not to won't necessarily be worse off than now, many will be better off.

The big difference is that now the person who goes off to work to some boring low paid job and sees their lazy neighbour sat on their backside all day being no worse off, and thinks "why bother". Under UC they will be significantly better off than their lazy neighbour, it will become worth working.