Tax credits and universal credit - any advice?

lwright86

My wife and I had our first child in April this year. I was completing an Initial Teacher Training course and she went onto maternity leave. We started claiming working tax credits and child tax credits.

When my course ended in June I had not managed to secure a job and applied for jobseeker's allowance, but was advised that because of our postcode area I would need to apply for Universal Credit, and that our tax credits would carry across.

Since that claim was put through, we have been informed that we could not claim Universal Credits as my wife's statutory maternity pay of £139.58 per weeks takes us over the Universal Credits eligibility cap of £541 per month. Because we made the original claim for Universal Credits, HMRC are telling us our tax credits are now cancelled and, despite not being eligible for Universal Credits, we are not allowed to reclaim working or child tax credit as we are listed as Universal Credits claimants.

As it stands now, my family has an income that does not cover our rent, and we are stuck between two benefits systems that refuse to take ownership of us. This has caused us an incredible degree of distress and upset. As a couple who have paid into the benefits system continuously for almost the entirety of our working lives we find ourselves now, when we need it the most, completely let down by its ineptitude and the poor implementation of the Universal Credits system.

Icequeen99

lwright86 wrote: »

My wife and I had our first child in April this year. I was completing an Initial Teacher Training course and she went onto maternity leave. We started claiming working tax credits and child tax credits.

When my course ended in June I had not managed to secure a job and applied for jobseeker's allowance, but was advised that because of our postcode area I would need to apply for Universal Credit, and that our tax credits would carry across.

Since that claim was put through, we have been informed that we could not claim Universal Credits as my wife's statutory maternity pay of £139.58 per weeks takes us over the Universal Credits eligibility cap of £541 per month. Because we made the original claim for Universal Credits, HMRC are telling us our tax credits are now cancelled and, despite not being eligible for Universal Credits, we are not allowed to reclaim working or child tax credit as we are listed as Universal Credits claimants.

As it stands now, my family has an income that does not cover our rent, and we are stuck between two benefits systems that refuse to take ownership of us. This has caused us an incredible degree of distress and upset. As a couple who have paid into the benefits system continuously for almost the entirety of our working lives we find ourselves now, when we need it the most, completely let down by its ineptitude and the poor implementation of the Universal Credits system.

Can you tell us your postcode area? or whether it is a live service or digital service area for UC?

Also - can you confirm were you trying to claim income based JSA or contribution based JSA?

IQ

pmlindyloo

This link gives you a UC helpline.

https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/universal-credit-eligibility/

Since you are not eligible for UC in your area then your claim should not be 'live'.

Instead you need to apply for HB and CT reduction based on a low income (forms from your council) You would not be eligible for income based JSA as your partner is receiving SMP and the amount takes you over the JSA couple rate.
You could see if you are eligible for contribution based JSA which would not be affected by your partner's SMP.

However, you need to telephone the helpline and ask them to help you close the UC 'account'.

And/or ask CAB to telephone the job centre plus on your behalf and get them to sort this out.

Once it is sorted then you should notify tax credits to get them reinstated.

Alice_Holt

Once you have terminated the UC "claim" (to enable you to reclaim TC and put in a HB claim), I wonder if it is worth contacting your MP.

A letter from them might speed up the process, and focus HMRC & the DWP on getting your claim sorted. In any case, since UC was voted through by the H of C, they need to be aware of the DWP's "ineptitude and the poor implementation of the Universal Credits system.".

Icequeen99

pmlindyloo wrote: »

This link gives you a UC helpline.

https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/universal-credit-eligibility/

Since you are not eligible for UC in your area then your claim should not be 'live'.

Instead you need to apply for HB and CT reduction based on a low income (forms from your council) You would not be eligible for income based JSA as your partner is receiving SMP and the amount takes you over the JSA couple rate.
You could see if you are eligible for contribution based JSA which would not be affected by your partner's SMP.

However, you need to telephone the helpline and ask them to help you close the UC 'account'.

And/or ask CAB to telephone the job centre plus on your behalf and get them to sort this out.

Once it is sorted then you should notify tax credits to get them reinstated.

But if they live in a digital postcode this wouldn't apply - they wouldn't be able to claim tax credits.

If it is a live service area (possibly the 541 should read 561) - then I believe they will now be designated a UC claimant if their claim was refused due to the level of their earnings which means they could be caught by the 6 month rule and they couldn't claim tax credits in this time.

OP - you need to get some advice on this.

If that is the case, then whoever advised them to claim UC in the first place didn't give them good advice.

IQ