Loss of Tax Credits due to claiming UC

calcotti

Government are acknowledging there has been a problem

see https://hansard.parliament.uk/commons/2020-05-04/debates/CEE2A905-7589-40D0-B14C-219F12CCB242/Covid-19DWPUpdate

Mr Owen Paterson (North Shropshire) (Con) [V]
... I draw her attention to those people, many of them self-employed, on working tax credits. They were encouraged by the Government to apply for universal credit, not knowing that at the moment they applied for universal credit, they automatically lost by law working tax credit. Some of them now find that because they have been prudent—they had set aside money for pensions and they had savings—they do not qualify under current rules for universal credit and cannot go back and claim for working tax credits. I have had letters from her Department talking about new-style employment and support allowance and the new self-employment income support scheme, which are very welcome. Will she go back to those people and make it clear that they have the right to apply for these schemes, because many of them are not accustomed to dealing with the benefits system and only went through the process under Government encouragement? 
Dr Coffey
... I am very aware of the issue he is ​bringing to my attention, and I am actively looking at that particular scenario, where people, not realising some of the eligibility rules, have then made the application and are no longer effectively going to receive working tax credits. I cannot give an answer to my right hon. Friend or the House today, but I assure him that I am looking very carefully into what changes we could make to address that situation. I have already asked for the website to be updated, so that people are crystal clear when they apply

will have to to wait and see if they take any action to help those who have lost out.

Jeremy535897

Thanks for that. It is particularly poor that DWP workers have encouraged people across to UC when not in their best interests.

Mrsn

It has definitely caught a lot of people out! Hopefully it’ll lead to a positive resolution, thanks for the share Calcotti 

calcotti

Jeremy535897 said:

Thanks for that. It is particularly poor that DWP workers have encouraged people across to UC when not in their best interests.

I thinks it’s generally poor that there aren’t a few “key points to consider” highlighted on the UC claim page. A lot of comments in other threads about people who have got nothing initially because of final wages received after claiming whereas if they had claimed two or three days later they would have got a full payment. 
There is now the following statement on the claim page:

You cannot claim Universal Credit and tax credits at the same time. If you get tax credits, they will stop when you or your partner applies for Universal Credit. Check how tax credits and Universal Credit affect each other.

It would have been better if they had spelled out that claiming UC will end the Tax Credits even if it turns out there is no entitlement UC.

alison2875

This happened to me I was given the advice after my self employment stopped the HMRC advisor advised me to contact universal credit to see if i could get more help not once did he say about my tax credit stopping he even said ring us back in a couple of weeks we will know more. My tax credits just stopped the day I received that letter was horrific I had no work no money and 5 children to feed and support emotionally it left me suicidal I didn’t sleep for a week. I have lost £80 per week and now in debt for his advise. I have written letter after letter complaint after complaint I have sent two mandatory reconsiderations in. I have one letter to say yes his advice was wrong and to apologise but I had to borrow an advance we are living on nothing and I get an apology its not fair I feel like I was left to dry and I rang on Saturday and more apologises it really isn’t fair i hope we get help on this matter as I feel really let down thanks 

Galloglass

.... see if they take any action to help those who have lost out.

At the risk of getting flamed, the question is do you "lose out" if you are not entitled by law. The idea that there is an update to make it clear is progress though.