Benefit calculator shows better off on UC?

stressed123

Thanks to a previous thread I posted, I have just completed a benefits calculator online (Entitled to) which shows I would be better off moving over to UC on my new wage (have just started a new job). Currently receive child tax credits, housing benefit and a tiny amount of working tax credits (under my new wage I will not be eligible for the working tax credits).

Apparently I would be nearly £200 better off a month! I am surprised at this as due to the horror stories I have heard about universal credit. Are there any pitfalls to applying? I have read about it taking a long time to get any money when claiming? Also, my wage may change slightly each month. Would this be a concern? I had also read about there being different rules if your youngest child is three and only one of you is working (my husband is currently a stay at home parent, our youngest is nearly 3)

Thanks in advance! :beer:

NedS

Regarding the horror stories, the press are only ever going to write about the bad cases - they are never going to publish a story about a working family who is better off on Universal Credit as that doesn't sell newspapers. UC was designed to make work pay, so it shouldn't come as a surprise to find working people are better off on UC.

With regard to the length of time to receive your first regular payment - this is 1 month and 7 days (~5 weeks) from the date of claim. However, once you have verified your ID you can apply for an advance (a loan) on your first payment, which is repayable over a maximum of 12 months. The system shouldn't leave you without money for 5 weeks when you make your claim.

UC works really well for people whose wage varies each month. Your earnings each month are reported automatically by your employer and your UC payment is adjusted on a monthly basis depending how much you have earned in that month. This is much better than the old tax credits system which was based on averaged yearly earnings and made no account for how much you actually received in earnings each month.

With regards to your youngest child being nearly 3, once the child turns 3 both adults could be required to attend appointments and look for work, depending upon other circumstances. It could be that your earnings are sufficient that both you and he will not be required to look for work. How much is your typical take home pay each month?

stressed123

Thanks Ned, my wage will be £1500 minimum each month after tax. This will raise to £1700 some months

poppy12345

Also do be aware that depending on how often you receive your wages if during an assessment period you receive more than 1 wage then this will affect the amount of UC you'll receive that month. In most cases it will reduce your payment to zero for that month. If this happens then your UC claim will close so you'll need to reclaim by logging into your account.

NedS

Given your household earnings of £1500/month, neither you nor your husband will be required to attend regular appointments (other than your initial ID appointments) or look for work. You will be deemed to be working enough in UC parlance.

stressed123

Thanks all. Just another quick question- I have read online that if you re paying back tax credits overpayments, that gets taken out of initial UC payments. I don't owe any as far as I know (will double check!) but I am paying back an overpayment for housing benefit which is deducted from my payments each week. Does anybody know how this would work? Thanks

NedS

Any deductions you are currently paying back on benefits that are replaced by UC will be transferred over to UC when you make your claim and those legacy benefits are closed. So any payments you are currently paying back on housing benefit or tax credits will then be taken out of your UC going forward until they are all repaid.

calcotti

I think any repayments of previous benefit taken from your UC may be taken at a different (higher) rate than previously. You will have agreed a repayment plan with your local authority for the Housing Benefit but DWP may apply a default rate. Others may be able to give more advice on this.