Moving from WFTC to UC my story.

caspertguk

My transition from Working Families Tax Credits to Universal Credit.

History

I am a single parent who has been self employed since 2011 living in Cornwall. Claiming WFTC since 2011 combined with Housing Benefit. A system that has worked well for me, being only available for work for limited hours due to children WFTC has been a godsend. It has allowed me to work in order to pay my bills and also look after my two children (now aged 9 and 7) I fortunately am unable to read or write but have made the very best of my situation working self employed at jobs I can do without these pretty much essential skills in this modern world.
WFTC allows you to earn up to approx £5000 a year profit without your award being affected and also allows you to earn over this as long as you declare it, reducing the government top up in accordance with your income. A very fair and helpful system for those who struggle to find full time employment for what ever reason. Oh how things have changed!!

Present Day

So for reasons that are not important I find myself needing to move house, in fact move area! Goodbye Cornwall and hello sunny Devon. This is where the trouble starts.
Devon do not have separate housing benefit system any more so my perfectly good and easy WFTC claim has to be closed so I can claim the new all in one Universal Credit.
All seems fine at first, interview goes OK and they accept I am self employed great, or is it? Universal credit expect you to earn minimum wage for your 25 hours a week and automatically deduct this from your benefit! I've just moved and have no customers or work lined up yet. My award is only enough to just cover my rent leaving me nothing to feed the kids pay bills nothing.
A trip back to another interview to be told “sorry but if you want the full amount of the award you have to stop being self employed and look for work” I simply have no choice, either I do this and get the extra £300 a month to feed my children or I continue self employment and let them starve.
So I have become a statistic, a unemployed person for the first time since I was 14 years old. £300 doesn't pay the bills and feed and clothe the kids but its better than starving them right?? I sit at home bored, wanting to go out and work, find more work and build a business here but alas no.
My minimum income floor I needed to earn each week, the figure they say I should instantly be earning for my 25 hours is way beyond reality for someone starting afresh in a new area, but it is what it is right??
Well working through the figures, in order to take home the figure they set after tax, national insurance and other deductions I am left looking for a job that is 25 hours a week, paid school holidays and has an hourly rate of £12.75.
Maybe in time I could have achieved this self employed, I certainly had hoped so but I will never get the chance now. If anyone knows of any jobs that match the above criteria for a soon to be 45 year old who can not read or write please let me know.

Many Thanks Universal Credit for making me out of work for the first time in 31 years, your new system is AMAZING.

pmlindyloo

At the moment you are unemployed so you need to end your self employment work and look for a job.

You will then receive:
Standard Allowance £317.82
Housing **** (the 2 bed local housing allowance for your area)
Children £508.75
Child Benefit
Child Support

(Based on having savings less than £6000)

If your LHA is less than your rent then you could try asking for a Discretionary Housing Payment until you can start up your Self Employment again.

Whilst receiving money as unemployed you will have to agree to your claimant commitment as regards job searching.

During this time you can also investigate setting up your self employment again - getting clients, advertising etc. Discuss this with your job coach and ask if you have a period of unemployment and then start self employment again whether you would be eligible for the one year start period - i.e you would not have to earn NMW x 25.

It is possible that they will not allow it so then you might have to find a job and use childcare (UC will pay 80% (?) of child care costs)

Many single parents have to work round their children and most use childcare and holidays to do this.

I hope I am not sounding unsympathetic but hopefully they will allow you to start up another self employment business but you must be confident that it is financially viable. I am afraid the days of doing self employment for very little profit and expecting benefits to 'top you up' are now a thing of the past.

caspertguk

This is my plan to do this. Just unfortunate the few jobs i had lined up i have had to let go as even they wouldn't have given me enough to live on for 4 weeks. Plan to use childcare at some point, Childcare for after school club is £150 a week and UC pay this in arrears so need to find £600 from somewhere to pay this upfront if i find a nice job.
Your calculations are correct and i am very short of housing costs, its just expensive here. No child support though.
standard allowance £317
housing £550
children £508

Less loan i needed from uc as they pay in arrears £112
Housing cost £850

Left over £413 a month of that if i stay self employed they take £362
Just cant afford to take that chance of not feeding kids.

But i do hope in the future i may be able to qualify for a start up!
If not i will do my best to find work, sitting doing nothing for the first time is driving me into depression.

Witchfinder_General

One has to ask. Would the father of the children be in a position to help you out?

tomtom256

But you can still do self employment and build it up as long as you report your eanrings.

I presume your were found to be gainfully self employed, if so ask them to find you not gainfully self employed and they should remove the MIF as you will be expected to look for work as well.

You will have to attend regular work search reviews but this will allow you to build up your business and/or get PTW around the self employment if you can.

ilovechristmas1

im not saying you op but under WTC and self employed there was alot of abuse and sadly the abuse is now punishing the SE on UC

xylophone

Are there adult literacy classes that you could attend?

Or is Read Easy available in your area?

https://readeasy.org.uk/contact/

Or can the person who has written your post for you and reads the responses help you to learn?

xylophone

Are there adult literacy classes that you could attend?

Or is Read Easy available in your area?

https://readeasy.org.uk/contact/

Or can the person who has written your post for you and reads the responses help you to learn?

caspertguk

tomtom256 wrote: »

But you can still do self employment and build it up as long as you report your eanrings.

I presume your were found to be gainfully self employed, if so ask them to find you not gainfully self employed and they should remove the MIF as you will be expected to look for work as well.

You will have to attend regular work search reviews but this will allow you to build up your business and/or get PTW around the self employment if you can.

Was told i had to stop self employment altogether and inform HMRC that i had stopped self employment.

caspertguk

xylophone wrote: »

Are there adult literacy classes that you could attend?

Or is Read Easy available in your area?



Or can the person who has written your post for you and reads the responses help you to learn?

He has severe dislexia and really can't grasp even basics.

caspertguk

Witchfinder_General wrote: »

One has to ask. Would the father of the children be in a position to help you out?

I am the Father!! Single parent as my wife died of Cancer.