Universal credit replacing tax credits

Beaneywatts

Hello everyone,

I am currently looking to buy my first house and the mortgage adviser at the bank is looking into the affordability and asking how much working and child tax credits I receive - however, universal credit doesn’t list these individually anymore.

The adviser wants to know which elements of UC are the replacements for working and child tax credits, but the internet doesn’t seem to actually define this and the person at UC who I asked was no help at all.

It would make sense to me that the child element replaced child tax credits, the housing element replaced housing benefit, the carers element replaced carers allowance etc (I’m not in receipt of all of the above by the way!), but the standard element is a mystery to me as to what benefit this really replaces.

I thought maybe someone on here may have been through similar and I’d be interested to know how their mortgage adviser eventually considered the elements, whether they included them or not etc.

Any experience or knowledge will be gratefully received,

Thank you!

huckster

Standard element is just the JSA/ESA basic rate equivalent.

In regarding to working tax credit equivalent on UC, for each £1 you earn, you lose 63 pence of the standard element. This is just an earnings taper.

If you mess around on a benefits calculator such as Entitledto or Turn2us, you can see how earnings affect the benefit amount you receive. If you enter information as accurately as you can, you can print off an estimate of your likely benefit amount.

Be aware that the budget is this week and benefit rates/rules might well change soon anyway.

https://www.entitledto.co.uk/help/Earnings-taper-Universal-Credit

pmlindyloo

huckster wrote: »

Standard element is just the JSA/ESA basic rate equivalent.

In regarding to working tax credit equivalent on UC, for each £1 you earn, you lose 63 pence of the standard element. This is just an earnings taper.

If you mess around on a benefits calculator such as Entitledto or Turn2us, you can see how earnings affect the benefit amount you receive. If you enter information as accurately as you can, you can print off an estimate of your likely benefit amount.

Be aware that the budget is this week and benefit rates/rules might well change soon anyway.

https://www.entitledto.co.uk/help/Earnings-taper-Universal-Credit

I don't think this is quite right. The standard element applies to everyone.

If you put your details into this calculator it gives a breakdown of your UC award.

https://www.moneysavingexpert.com/family/benefits-check

If you are only claiming the tax credits part then you should be able to deduct anything that isn't relevant (e.g carer's element/housing element. )

So, include the child element (and anything related child disability/child care costs) plus then remaining sum which should equate to the working tax credits.

Come back when you have the breakdown and tell us what it is, if you need further help.