Universal Tax Credits Calculator

bikeman

I just wanted to post a link to a calculator for the new universal tax credits which comes into effect this year and replaces tax credits.

http://policyinpractice.co.uk/universal-credit/universal-credit-calculator/universal-credit-claim/

Try it out and see how it affects you.

One thing you will pickup on very quickly is that UTC is means tested in that it takes into account your savings. Something that WTC and CTC doesn't. The effect of this is that UTC activly discourages saving and rewards those that don't.

Effectively the mantra 'making work pay' is simply achieved by removing any support for anyone who has put a few quid aside.

If you've worked hard, saved a few quid and then lose your job you'll get nothing. If your neighbour spends every penny they earn and then lose their job they'll get UTC. Blatently ill thought out and unfairly rewards irresponsibility.

Bearing in mind that a large proportion of those in work currently get some form of tax credit; particularly the generous child tax credit designed to alleviate chld poverty, th eloss of UTC is likely to cause significant dissent among those who work hard and have saved a bit.

The DWP figures show that there are over 100,000 people claiming tax credits with savings above £16,000. They will get nothing under UTC.

Another thing to pick up on is that whole ethos of tax credits has been to subsidise low wage bills for businesses and allow the minimum wage to be pegged at an unrealistically low level. When the govt bangs on about an unsustainable benefit bill it conveniently ignores that an adjustment to the minimum wage would alleviate the need for tax credits and remove what is in effect a subsidy for business rather than a workshy benefit.

1step-at-a-time

The calculator confuses me a little. It has two options: mortgage and then enter amount if you want to claim for mortgage assistance; and no housing costs. We have a mortgage, but wouldn't be claiming for it. If I select no housing costs (as would not be claiming for them) I get one figure out of the calculator and if I select mortgage and enter 0 for amount claimed I get another figure out. The figure I get when selecting no housing costs is some £130 more than if I select mortgage and enter 0 claim.

If not claiming for mortgage costs does anyone know which of the two options you pick to get an accurate idea of your claim? (I really hope that makes sense!)

bikeman

I suspect its just a case of the calculator not envisaging that anyone would select that they have a mortgage of 0. Clearly you have no housing costs and should select that option. You may wish to refer this anomaly to the site owner.

princessdon

Do you not agree with means tested benefits?

john1002

I get a high active threat warning from AVg when i try and access that site.

Worrying

John

Hmm71

The problem I have with that calculator is there is nowhere to add in State Pensions. I am still of working age and hoping to get a new job soon but my husband is retired. Do I add on my hubby's State Pension to the amount it estimates we should get or do I take it off or what? At the moment it isn't accurate enough for my circumstances.

aliasojo

bikeman wrote: »

One thing you will pickup on very quickly is that UTC is means tested in that it takes into account your savings. Something that WTC and CTC doesn't. The effect of this is that UTC activly discourages saving and rewards those that don't.

Effectively the mantra 'making work pay' is simply achieved by removing any support for anyone who has put a few quid aside.

If you've worked hard, saved a few quid and then lose your job you'll get nothing. If your neighbour spends every penny they earn and then lose their job they'll get UTC. Blatently ill thought out and unfairly rewards irresponsibility.

I wonder if the reality of this in practice will mean less 'account' saving and more 'under the mattress' saving.

bikeman

princessdon wrote: »

Do you not agree with means tested benefits?

I think it has a wider impact on discouraging saving, discouraging self-suffficiency, it penalises those that do save and rewards those who do not etc etc. It encourages a spend rather than save culture. To set an arbitrary limit of £16k affects those with £16,0001 unfairly against those with £15,999.

In short I think it's simplistic and typical of a government who legislates without thinking it through.

But what I think is not the point of this thread so there's no need for us to debate it.

keigcf

My big problem, still trying to work out if a loan I made to a family member few years ago to buy house counts as savings. I can't get it back, but it is a loan not a gift.

bikeman

Hmm71 wrote: »

The problem I have with that calculator is there is nowhere to add in State Pensions. I am still of working age and hoping to get a new job soon but my husband is retired. Do I add on my hubby's State Pension to the amount it estimates we should get or do I take it off or what? At the moment it isn't accurate enough for my circumstances.

For UTC income is income regardless of it's source.

Hmm71

bikeman wrote: »

For UTC income is income regardless of it's source.

Yes but where do I add it in on the calculator, there's no "other income" slot.