Moving to UC from WTC as lost job

Alice_Holt

threeintoone said:

thank you for the tip, she is due a final payment next week for holiday pay.  I didn't know that the Child tax credit could continue if she didn't claim UC - I  though it was all tax credits that stop when your hours drop below 16 per week, not just Working Tax credits.  She has some money in a LISA as was saving for a deposit ( I think it's about £10,000) - so might she be better off just staying on child tax credits and not claiming as her UC will be deducted for the savings?  It's so confusing !

      Very possibly, I would suggest she sees if she has an eligibility for New Style JSA (based on NI contributions). Then do a benefit check ( https://www.gov.uk/benefits-calculators ), to see if she is better off claiming NSJSA and keeping the CTC claim running, than making a UC claim
    Given she has no housing costs, and £10k in savings - then she is could be better off with NSJSA and WTC:
https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-income-and-capital/Capital-Savings#:~:text=)%3A%20Capital%2F%20Savings-,Universal%20Credit%20(UC)%3A%20Capital%2F%20Savings,whether%20it%20does%20or%20not.
    She will also avoid the 5 week wait for UC (her WTC having stopped on making the claim). 
   Her CTC will be based on her estimated earnings for the 2020/21 tax year, so is likely to increase from the current level.


      

poppy12345

threeintoone said:

thanks everyone she has claimed UC now, and JSA.  Hopefully she will get another job soon. 

  I'm confused why you came here to ask for advice, which was given and she's done the exact opposite to what was advised... pointless coming here for advice. Her UC payment will now be reduced by 63% if she doesn't have a work allowance. This could mean that her first UC payment may reduce to zero... Her tax credits will also now end.

Alice_Holt

poppy12345 said:

threeintoone said:

thanks everyone she has claimed UC now, and JSA.  Hopefully she will get another job soon. 

  I'm confused why you came here to ask for advice, which was given and she's done the exact opposite to what was advised... pointless coming here for advice. Her UC payment will now be reduced by 63% if she doesn't have a work allowance. This could mean that her first UC payment may reduce to zero... Her tax credits will also now end.

     Indeed.
£10k of savings will reduce monthly UC payments as calcotti pointed out.
Claimants in receipt of TC do need to be very careful when considering a means-tested UC claim. 
I wonder if the OP is aware that TC claims cannot be reinstated following a UC claim, even if the claimant discovers they will be worse off under UC in the future.

calcotti

Alice_Holt said:

I wonder if the OP is aware that TC claims cannot be reinstated following a UC claim, even if the claimant discovers they will be worse off under UC in the future.

Was advised of this by spoonie in the first reply. OP has had a lot of advice but not have taken it all in - it is as they said in one of their posts very confusing.
(PS Welcome back, you’ve been missed)

poppy12345

@Alice_Holt welcome back! good to see you post!