UC tapers - WPA and widow's pensions

LydiaJ

I am trying to work out how much difference the transition to UC will make to me, but I'm finding it hard to track down the specific information I need, so I wonder if any of you can help me?

I'm widowed with two kids of school age. I work as a teacher, and earn at a reasonable rate, but currently only do about 50% FTE. I receive small widow's pensions from two pension schemes that my late husband was in, and claim WPA as well as CB. I get topped up by some CTC/WTC (including the childcare element for my daughter's after school club), but don't claim (or need) any other benefits.

So here are my questions:

1) Am I right in thinking that my WPA and widow's pensions will cause withdrawal of UC at 100% of net (so 80% of gross) instead of the 41% of gross taper currently applied to CTC/WTC?

2) If so, then since 39% of my WPA + pensions is more than I'm currently claiming in CTC/WTC, is it likely I would get no UC at all?

Please note that I am NOT asking for advice as to how to get or maximise UC, or complaining that what I receive is going to go down. I just want to get an accurate idea of how things are going to change so that I can plan accordingly. Whatever your view of benefits and those who claim them, please don't flame me for asking for information.

Thanks very much.

PS Sorry if this has been asked before - I've tried searching the board and haven't come up with anything that answers my particular question. Feel free to direct me to another thread if there is one instead of explaining it all over again.

Horseunderwater

There will be some transitional protection for some of those payments - not sure which ones. I think the taper down may be 65% not 41% - but that is about all I know, but whether that is accurate or not I do not know.

LydiaJ

Thanks Horseunderwater. I do know there will be transitional arrangements, but they won't last forever and I'm trying to plan ahead for how things end up for me.

The 41% is the current taper for gross income (both earned and unearned) that's used for tax credits. Under UC, earned income is going to be tapered at 65% of net - although I don't know if that means net of tax and NI, or net of tax, NI and pension contributions. However, unearned income is going to cause withdrawal of UC at 100% of net, and that's what makes me suspect I may end up being one of the ones with most to lose from the transition, and therefore most need to plan ahead.

MissMoneypenny

How old is your youngest child? Don't forget that UC claimants will have conditions about the amount they need to earn per week, based on the age of the youngest child and that might need to be factored into your calculations too.

LydiaJ

Good point, MissMoneypenny. Thank you.

My youngest is 9, but I pretty sure I'm already earning over the threshold, as far as I've been able to find out for sure what the threshold is going to be. Certainly my earnings have always been above the level for claiming means tested benefits other than CTC/WTC.