Help me understand Universal Credit & other changes

helptips

Hello everyone,

I have some questions on behalf of my brother with regards to the upcoming Universal Credit, Tax Credit & SMI changes in 2016/17/18 and hope someone can help me.

I'll give you a bit of background....He is 42, married with 4 children. He is currently employed, working 30 hrs per week and received WTC & CTC. He also get's lower-rate DLA for care/mobility.

At the moment, universal credit hasn't started in the area he lives in, but he has some concerns on how it affects him in the near future.

1. He's read that in 2017 UC will be limited to the first 2 children - How would this affect him, assuming he lost his job?

2. Does it matter when the children were born?

3. How does UC affect him if he continues working? Does he get more or less or same compared to now?

nannytone_2

the new 2 child rule only affects children born after april 2017.
a lot depends on household circumstances.
how old are the kids?
does he have a partner?
does the partner work?

Icequeen99

nannytone wrote: »

the new 2 child rule only affects children born after april 2017.
a lot depends on household circumstances.
how old are the kids?
does he have a partner?
does the partner work?

For tax credits it only affects children born after April 2017, but not for new claims for UC is my understanding.

IQ

nannytone_2

that didn't occur to me. i would think that if they are cutting the welfare budget by capping the number of children that can be claimed for to 2, then it would be pointless if it didn't apply to universal credit too as eventually no one will get tax credits anyway

helptips

Thanks for your replies.

My apologies as I'm somewhat confused.

1. I thought soon tax credits will be abolished and only UC will exist?

2. Will those who lose their job and apply for UC be classed as new claimants, even though all their children are born before 2017?


@nannytone - kids are 7,13,14,16, he has a partner whom is not currently working.

nannytone_2

under universal credit they will be expected to work
1 x 35 at NMW and
1 x 16 hours at NMW.

if one of the couple has a better paying job and earns the equivalent of the above alone, then their partner will not be expected to seek employment.

if he isn't earning the above, then they will BOTH have to be actively seeking work/more hours to comply and be eligible for universal credit

mortgagewannabe_2

Hi, how would this affect those whom are working and claiming tax credits? Would they be moved onto universal credit?

helptips

Thanks very much nannytone, my apologies, but this still doesn't answer my questions about how it affects those who have kids born before UC starts.. Will they get paid for only 2 kids or all the kids?

Btw just to help you understand his circumstances, his disability does fluctuate immensely as a few years ago, he was receiving the highest rate for DLA and partner was getting carers.

So with his circumstances, i.e on DLA, unwell, will he also be expected to continuously look for work if he lost his job due to ill-health?

emmsie123

From what i understand you get transitional protection under uc. If you have 4 children now, although you get less child benefit for the eldest child.
So does this mean that a change of circumstance would then revert the claim to 2 kids instead of 4?
http://www.entitledto.co.uk/help/Benefit_Changes_July_Budget_2015

nannytone_2

as i said in a previous post ... it only affects children born after april 2017

mortgagewannabe_2

Is there a calculator that could show what income one could expect when universal credit does start??