UC/ no mortgage query

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Hi

Have googled, but just wanting some fresh perspective.....

Am in Northern Ireland, 'Welfare Reform' being advertised on telly, certain benefits being moved under Universal Credit umbrella. The only benefits we claim/receive are Child Benefit and Child Tax Credit (not the Working Tax element, OH salary is sufficient). That's all well and good. I've been fortunate enough to be able to stay at home for past three years with our youngest, prior to this worked f/t. Anyway, point being that we both worked our butts off for years, and overpaid when we could on the mortgage, and were able to clear it altogether last year (yay!). So the house is now ours, but under UC we'll not get anything because that's 'capital', or not? Yes it's capital. but it doesn't earn us any money. It's not another house which we rent out for profit, it's our home, paid for through honest income. Our current CTC payment isn't a huge amount, but we will notice if it goes to zero.

Any thoughts, please and thank you?
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Comments

  • Alice_Walker
    Alice_Walker Posts: 574 Forumite
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    The home you live in is not counted as capital.
  • dirtydingismagee
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    The home you live in is not counted as capital.

    That's that sorted then! Thanks :o
  • autumn2012_2
    autumn2012_2 Posts: 223 Forumite
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    Id double check whether you will even be entitled to UC when it switches over as Im not even though Im currently entitled to CTC
  • dirtydingismagee
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    autumn2012 wrote: »
    Id double check whether you will even be entitled to UC when it switches over as Im not even though Im currently entitled to CTC

    I'm hoping it won't be rolled out here for a while yet! But I see what you mean... according to Money Advice Service:

    If you get Child Tax Credit or tax credits to help with childcare costs

    Your monthly Universal Credit payment will include the following elements also called additions, which will replace the help you currently get from tax credits.

    Child element – this helps with the costs of bringing up a child.
    Disabled child addition – this helps with the extra costs of bringing up a disabled child and will be paid at either a lower or higher rate depending on the needs of your child.
    Childcare costs element – lets you claim back up to 70% of your monthly registered childcare costs (up to a capped limit) while you’re working. In 2016, this will be increased to cover up to 85% of your monthly registered childcare costs (up to a capped limit).
    From April 2017, if you are making a claim for Universal Credit, support will be limited to the first two children (unless you have a multiple birth) and the first child premium will no longer be available.

    How Universal Credit is different from Child Tax Credits

    Under Universal Credit there will be different rules about what you have to do in return for receiving your payment.

    Age of child What you have to do in return for your Universal Credit payment
    Under 1 You won’t be asked to work in return for your Universal Credit
    Between 1 and 2 You will be asked to attend interviews with a work coach to discuss plans for a future move into work
    Between 3 and 4 You will be expected to take active steps to prepare for work, such as training and interviews with a work coach
    Between 5 and 12 You will be expected to look for work that fits in with your responsibilities – for example, during school hours
    Age 13 and above You will normally be expected to look for full-time work
    From April 2017, you will be expected to prepare for work when your youngest child turns two, and to look for work when your youngest child turns three, with support from Jobcentre Plus.


    So I think we might only get the Child Element, if anything at all
  • autumn2012_2
    autumn2012_2 Posts: 223 Forumite
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    I currently get 240 per month and Ill be losing that completely when UC comes in as we arent poor enough! Ridiculous
  • dirtydingismagee
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    autumn2012 wrote: »
    I currently get 240 per month and Ill be losing that completely when UC comes in as we arent poor enough! Ridiculous

    And have you been told why exactly you'll be getting nowt? As little as it may be each month, it's an essential part of the budget in this house
  • dirtydingismagee
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    Going back to my original post, have now found this from CAB...

    Step One

    Your personal circumstances will be assessed to work out the maximum Universal Credit payment that someone in your situation will get. It will be made up of a basic allowance depending on whether you’re:

    a single person
    a couple
    aged 25 or under.
    Depending on your circumstances you'll also get an amount for:

    a first or only child
    other children
    any disabled children
    housing costs, either rent or mortgage
    other needs - for example, if you have caring responsibilities or are sick
    childcare costs if you’re working
    disability if you have limited capability for work.

    Step Two

    Your earnings will be assessed. This is the money you have coming in from your income and capital. Earnings include:

    earnings from work
    savings
    income from capital - for example, dividends from shares or other investments
    income from pensions
    other income.

    Step Three

    Any savings or capital you have will be assessed. Capital is the amount of money you have in assets such shares, property and other investments. If you're in a couple, the savings and capital of both of you will be taken into account.


    So there's a difference between income from capital in Step Two, and just having capital in Step Three.

    Why bother having a mortgage and paying it off then? We'd all be safer just renting, and getting it all paid by the government in that case. No incentives at all for anyone honestly working.
  • WillowCat
    WillowCat Posts: 974 Forumite
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    So there's a difference between income from capital in Step Two, and just having capital in Step Three.

    Why bother having a mortgage and paying it off then? We'd all be safer just renting, and getting it all paid by the government in that case. No incentives at all for anyone honestly working.

    No, as mentioned in an earlier post the home you are living in is disregarded as capital.
  • Spendless
    Spendless Posts: 24,177 Forumite
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    Why bother having a mortgage and paying it off then? We'd all be safer just renting, and getting it all paid by the government in that case. No incentives at all for anyone honestly working.
    Because if tomorrow the Government comes up with another idea, that they wrote on the back of a fag packet after downing a couple of bottles of champagne, that they are going to reduce or stop housing benefit, you are in an enviable position. For the rest of your life you get to live for 'free' (except repairs/maintenance) in your property.

    When I first joined this site, someone said to me that anything that it is given to you by the Government can be taken away by them too.


    Well done on clearing your mortgage. :)
  • Floxxie
    Floxxie Posts: 2,852 Forumite
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    edited 11 May 2016 at 10:22PM
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    I got a booklet about the welfare changes in the post. It states that UC will start to be introduced in NI from April 2017 for completion 2020. (Have found it online too: https://www.nidirect.gov.uk/campaigns/welfare-changes)

    I shall lose everything under UC as I have a buy to let that makes me £200 a month. I hope I am one of those affected in the last batch of people!
    Mortgage start September 2015 £90000 MFiT #06
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