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I have savings, should I swap from child tax credit to uc?
Persephone_Mulberry
Posts: 109 Forumite
Hi everyone
I would be very grateful for some advice here. Currently myself and husband are both unemployed - he has had mental and physical health problems for a long time and I have just finished maternity leave (I was made redundant during that time). I have heard so many awful stories about harassment from the DWP of people who are claiming benefits under the umbrella of ill health that we have avoided claiming anything that would involve assessments or meetings etc. All we receive is child tax credit and child benefit. Everything else is being paid for from profits from our house sale (obviously not ideal!).
However hubs now says he feels well enough to hopefully return to work. Which is great! He’s going to stick to part time at the moment but can command a reasonable wage so it should be an ok amount of money (say £10k pa for 2 days a week). I am going to look for some part time work whilst also starting work on my own business.
My questions are:
1. If we start working again and are automatically moved to UC due to our change in circumstances, will our savings mean we automatically do not get any UC? We have £50k in savings which is our remaining house sale money and really the only chance we have of getting back on the housing ladder in the future.
2. I gather there’s a minimum amount Uc wants you earning? What happens once you are? Do you just get the benefit but none of the harassment?
3. As we have a school child and a toddler, are the hours requirements (aka earn the equiv of minimum wage for x hours) reduced for both of us or just the primary carer?
It would help hugely to be able to go onto UC financially, but not if it’s going to drive my husband to a breakdown, so all insight is really appreciated.
Thank you.
I would be very grateful for some advice here. Currently myself and husband are both unemployed - he has had mental and physical health problems for a long time and I have just finished maternity leave (I was made redundant during that time). I have heard so many awful stories about harassment from the DWP of people who are claiming benefits under the umbrella of ill health that we have avoided claiming anything that would involve assessments or meetings etc. All we receive is child tax credit and child benefit. Everything else is being paid for from profits from our house sale (obviously not ideal!).
However hubs now says he feels well enough to hopefully return to work. Which is great! He’s going to stick to part time at the moment but can command a reasonable wage so it should be an ok amount of money (say £10k pa for 2 days a week). I am going to look for some part time work whilst also starting work on my own business.
My questions are:
1. If we start working again and are automatically moved to UC due to our change in circumstances, will our savings mean we automatically do not get any UC? We have £50k in savings which is our remaining house sale money and really the only chance we have of getting back on the housing ladder in the future.
2. I gather there’s a minimum amount Uc wants you earning? What happens once you are? Do you just get the benefit but none of the harassment?
3. As we have a school child and a toddler, are the hours requirements (aka earn the equiv of minimum wage for x hours) reduced for both of us or just the primary carer?
It would help hugely to be able to go onto UC financially, but not if it’s going to drive my husband to a breakdown, so all insight is really appreciated.
Thank you.
0
Comments
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As you already have a claim for tax credits your husband returning to work will not prompt a move to UC. He will just need to report those changes to HMRC.
https://www.welfare-benefits-unit.org.uk/wp-content/uploads/2016/03/What-triggers-a-claim-for-Universal-Credit-in-a-full-service-area.pdf0 -
poppy12345 wrote: »As you already have a claim for tax credits your husband returning to work will not prompt a move to UC. He will just need to report those changes to HMRC.
https://www.welfare-benefits-unit.org.uk/wp-content/uploads/2016/03/What-triggers-a-claim-for-Universal-Credit-in-a-full-service-area.pdf
And may qualify for some Working Tax Credit depending on circumstances.
In any case as you have more than £16000 of savings you are not permitted to claim UC.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Thank you!0
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I wasn’t sure re savings as some places suggested that if you’re forced onto UC they give you 12 months where it’s ok.0
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Persephone_Mulberry wrote: »I wasn’t sure re savings as some places suggested that if you’re forced onto UC they give you 12 months where it’s ok.
I think that this concession regarding the savings limit will only apply to claimants who are subject to ‘managed migratiin’ Which is when existing Tax Credit claimants are required by DWP/HMRC to transfer to UC. It doesn’t, as I understand it, apply to claimants who ‘naturally migrate’ due to a change of circumstances.
https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/
I can understand your confusion - keeping track of all these exceptions, special circumstances is hard work. All the more so as the rules keep changing.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
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poppy12345 wrote: »You're right, it doesn't apply in these circumstances.
You’re replying so fast I don’t have time to correct my typing errors (which I never seem to notice until after I’ve posted).Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
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poppy12345 wrote: »:eek:......Sorry, i'll wait a while before replying
:rotfl:
Not a complaint - just an observation. Chunky/clunky fingers on a tablet.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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