Universal credit and being self employed - help help help please am desperate

SarahN.

Hi everybody,

Am a single mum with 2 young kids, 1 is 4 and the other is 7 months old. I lost my full time job after working 12 years for the same company, I then went on benefits currently claiming HB, child tax credit and income support. Before I went on HB the council said I should use all my redundancy money to pay the rent and only then will they be able to actually assist me. Once I started getting the benefit, I was really struggling with the rent as it was private and I had that house when I was working. I eventually lost the house because I was struggling to keep up with the rent and also because the landlord needed to have some work done. Also I set up a small business after I lost my job but its not doing well.

To cut it short am currently in a temporary acc. The job center rang me 2 days ago to let me know that the area I have been move to in on universal credit and that I should switch to it. She said although I might go back to my Borough where universal credit is not in place, it's a good idea that I switch to it now. She was really trying to convince me at that and said that, although I still do not get a salary from my business, universal credit will help pay the nursery for mu youngest child while I run the business. I told her that I will think about it and look for advise. She said she'll send me some notes to read (haven't received them yet).

My questions are:

- although I have been sent in this borough on a temporary basis, do I have the obligation to switch?
- will this universal credit affect the benefits I currently received?
- Am not getting a salary from the business yet and honestly thinking of closing it down by the end of the year if things don't move. How should I go about this? I have been trading for about a year and half now and am not even able to repay the loan I took to start the business.
- can I delay switching to universal credit until I get my permanent house?
- Do I have the obligation to accept the switch although am only in the area on a temporary basis?


Please please please, I need some advise, am really desperate right now and can't even sleep. If anyone has been in this situation please help. I work about 5-10 hours a week, sometimes less when I have no orders to ship. At times i can go 2-3 weeks without a single order, just to give you an idea of the situation.

Also I have never claimed working tax credit since I started the business, was I suppose to? Just asking this one because a friend was telling me that, although I do not take salary from the business I still could have claimed working tax credit, is that correct?

I';; stop for now hoping to receive a lot of response and advise about my situation, Am really desperate for answers right now.

Thank in advance.

xylophone

Have you tried booking an appointment with a Benefits Adviser at CAB?

https://www.moneyadviceservice.org.uk/en/articles/where-to-get-help-and-advice-about-benefits

SarahN.

Not yet as the job center only called me last Thursday around 4pm. The lady wanted me to give her an answer straight away but I asked her if she could give me few days to do some research about UC as it's all new to me. She agreed and said she'll call me back this week. She said although my youngest child is under a year, I could put her into nursery and UC will pay up to 85% of the cost.

pmlindyloo

I agree with xylophone - do book an appointment with CAB.

In the meantime

As you are in temporary accommodation then your housing costs will not be met by Universal Credit and you would have to continue with your claim for HB.

Read this:

https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/housing/

However, my understanding is that if you wish to claim a new benefit, for example income support (as you have children under 5 years) then you would have to make a claim for Universal Credit although your housing costs would still be paid by HB.

I do not think under Universal Credit rules that they would consider you gainfully self employed as you have been trading for over a year and draw no salary. I am not sure how you are managing money wise - do you get child support?- but my feeling is that you need to make a decision about this sooner rather than later.

Having said that you have a child under one so you would not be expected to look for work unless you wished to do so (this is where the childcare costs factor in)

It may be that they would allow you to continue with your self employment as you have such a young child - I do not know. But if you are not getting any salary from it I wonder whether it is worthwhile.

Certainly go and talk this through with a benefits advisor. At the moment there is no need for you to move to Universal Credit unless you wish to claim a new legacy benefit such as income support. CAB should be able to do a benefit check for you.

Good luck!

PS. And don't be forced into making a decision when the Job Centre ring. Just say that you are seeking advice from Citizens Advice and will 'get back to them'.

SarahN.

Hi pmlindyloo,


Thanks for your reply.


I currently receive HB, Income Support and Child Tax Credit. So the Job center wants me to switch from that and go on UC instead.


I was just on the phone with CAB and the man on the phone wasn't too sure as to whether I should go on UC or not since am only in this borough on a temp. basis. All this is just so confusing.


not sure if this makes sense.
Thanks
Sarah

pmlindyloo

I didn't realise you were on Income Support.

So there is absolutely no need for you to switch to Universal Credit as even though you are in a full service area your rent will continue to be paid through HB because you are in temporary accommodation and you can continue with your income support and child tax credits.

The only reason I can see to apply for Universal Credit is if you were better off on UC than you are now.

Use a benefits calculator like https://www.turn2us.org.uk and put in the two different scenarios. You could use your old postcode for one which should give you your current situation and then use your present post code which should give you the UC amount.

Why does the Job Centre bod think you will benefit from child care? Would you make more money if your child was in nursery/child in after school club?

SarahN.

The lady from the job center just called again asking me to do the switch asap. That she thought I would have done it over the weekend. I told her that am still seeking for advise and looking for more info. She said she'll call again at the end of the week and that I should switch because she's not able to transfer me on to UC. And that even though am only here on a temp basis I still have to switch because I could be here for months or even years.

pmlindyloo

The lady is implying that you HAVE to switch to UC.

If you were moving to a new area which is UC full service and had to make a new claim for housing costs (your rent) then I would agree - you have to switch. BUT from the link I gave you it says that if you are in temporary housing then you claim HB (as you do now)

You are not claiming any new benefits so you do not have to switch.

Perhaps I am missing something. Are you definitely in temporary housing?


Telephone back and ask if you HAVE to switch and why. If she says it is because you need to claim housing costs then tell her that you believe that as you are in temporary housing this needs to be paid through HB and is outside the Universal Credit.

If she insists that your housing costs have to go through UC then ask her to speak to a supervisor/manger to check.

SarahN.

Yes am in temp accommodation for sure and still gets my HB through my borough. Not sure why this lady keeps calling and at the same time I got another letter from the job center today asking me to send over the latest accounts for my self-employment.
I think even they, are confused.

Alice_Holt

SarahN. wrote: »

Yes am in temp accommodation for sure and still gets my HB through my borough. Not sure why this lady keeps calling and at the same time I got another letter from the job center today asking me to send over the latest accounts for my self-employment.
I think even they, are confused.

I'd be very careful about following advice from a JC employee about UC - generally they are not well trained (if at all) in benefits law.
Their attitude at my local JC tends to be - 'well you'll be on UC soon, so we'll try to get you on it now'. Thus completely ignoring protection from managed migration, and other circumstances that might affect the claimant.

As pmlindyloo says there does not seem a reason for you to switch to UC, and once you are on UC you can't go back. Even if DWP advice was flawed, and you are financially worse off.
So, be very careful, and make absolutely sure the decision is correct for you before making a change to UC.

You may want to get some more advice in person from you local advice centre / CAB. Also a better-off benefits check by your local advice centre / CAB.

Good luck.