Universal Credit 16k+ savings transistional protection?

CRITCHK

I must have been asleep in the last few years, but have just read about the elegilbility for UC.

My husband and I both work and earn a low income, we both earn around 15k between us. We have 2 children and currently qualify for CTC, WTC and free prescriptions. We have always been savers and use an ISA as an alternative to a pension and have over 16k saved. (this is for our retirement)

Under new UC application this would mean we would not qualify and get 0.

Our situation won't change for the next 10 years. Will the transitional protection mean we will be protected and get the same as what we get now (around £400 a month)

Icequeen99

Transitional protection for those with savings hasn't got a lot of detail yet (or i certainly haven't seen any regulations covering that specific scenario).

If you are moved across to UC by HMRC/DWP then you will get transitional protection. If you move because of a change of circumstances (and we don't know for definite what changes will trigger the end of a TC claim) then you won't get it.

Also, transitional protection once you get it will be taken away if you have certain changes once in UC and you will not get any increases in UC until all of the TP amount is used up.

IQ

BP1987

At the moment you wouldn't qualify for UC anyway as the current qualification criteria is small i imagine it will probably be 10 years before your tax credit element will get migrated over so to be honest i dont think you should really worry about it.

That said if it does come to the time where your circumstances change and either you or your partner god forbid do become unemployed for whatever reason your capital will be taken into account for any means tested benefit that you apply for.

CRITCHK

thanks for your replies. I am really miffed about this. We are told to save for our retirement and now they want to take this away from us. Did not want to put this into a pension as they are too restrictive.

BP1987

To be honest things could still change especially if there is a new government in after the next general election.

I honestly wouldn't worry about it for the time being.

The best thing to do would be just to keep yourself updated with any UC changes check the .gov website and news reports periodically because things often change.

nannytone_2

the obvious answer is to contribute to a private pension instead of 'saving'
this may also increase you entitlement as contributions to a pension are disregarded when working out tax credits

MissMoneypenny

BP1987 wrote: »

To be honest things could still change especially if there is a new government in after the next general election.

If you were hoping all the benefits would go back to the overly generous sysyem we have seen in the last few years, then that isn't going to happen. Labour not only voted in these Universal Credit and other welfare changes, it was Labour that brought in ATOS.

Labour realised their mistake when in government, as they had allowed the welfare bill to exceed the amount received in income tax; for the first time ever. The welfare state is on it's knees.

OP, if you think you will continue to need income based benefits, put your savings for your pension in a pension.

BP1987

MissMoneypenny wrote: »

If you were hoping all the benefits would go back to the overly generous sysyem we have seen in the last few years, then that isn't going to happen. Labour not only voted in these Universal Credit and other welfare changes, it was Labour that brought in ATOS.

No, i know theyre not going to pull the plug on UC, i'm talking more about the timescale of implementing it and maybe changes to the benefits that are included within it.

UC has been rushed and is failing miserably at the moment.

I agree it is a good idea but it needs a lot more time.

The DWP are still migrating people on Incapacity Benefit over to ESA. This is one single benefit to another and should have been completed in 2012? i think. I cant see the DWP being able to convert all the existing benefits over to UC by 2017 unless they make some changes.

My personal opinion.

tinkledom

CRITCHK wrote: »

thanks for your replies. I am really miffed about this. We are told to save for our retirement and now they want to take this away from us. Did not want to put this into a pension as they are too restrictive.

I'm trying to work out how you can manage to save on a combined gross income of just £15000 a year.


Then it dawned on me, my quick reckoning comes out that apart from any housing benefit or CTB you would be getting another £11,000 in additional benefits. This puts your combined income up to about £26,000. So effectively you are saving the benefits that are being paid to you AND you are hoping that you can continue to claim these benefits (under UC) to give you the same level of income AND not have the government take anything back due to having capital in excess of £16,000?


Is that fair?


My opinion is that if you can save out of your benefit income, you are receiving too much.

tinkledom

BP1987 wrote: »

No, i know theyre not going to pull the plug on UC, i'm talking more about the timescale of implementing it and maybe changes to the benefits that are included within it.

UC has been rushed and is failing miserably at the moment.

I agree it is a good idea but it needs a lot more time.

The DWP are still migrating people on Incapacity Benefit over to ESA. This is one single benefit to another and should have been completed in 2012? i think. I cant see the DWP being able to convert all the existing benefits over to UC by 2017 unless they make some changes.

My personal opinion.

You forget that all DLA awards for those who are over 16 and under 65 will be moved over to PIP in the same time frame.

MissMoneypenny

CRITCHK wrote: »

I must have been asleep in the last few years, but have just read about the elegilbility for UC.

My husband and I both work and earn a low income, we both earn around 15k between us. We have 2 children

Another thing with Universal Credit, is the money you and your husband will be expected to earn per week to avoid the UC Conditions.

To avoid the UC Conditions: there will be no more of 2 parents only working 24 hours between them; no more self employed earning less than national minimum wage per hour; no more single parents with teenage children just working 16 hours per week: with benefits (Tax Credits) making up their lost wage.