Would I be better off changing to Universal Credit from Tax Credits?

Spoonie_Turtle

UC includes an amount for housing costs, could that be it?

poppy12345

It’s not annual earnings that count for UC, it’s monthly earnings. Do you rent or own your own home? 

Jobfromhome

We rent with housing im just applying now see what it says.

poppy12345

Jobfromhome said:

We rent with housing im just applying now see what it says.

You should not apply for UC until you’re 100% certain you will be better off. Once you apply your tax credits will end and you will never be able to go back to tax credits. 

calcotti

As poppy says, do not apply for UC unless you are certain. The act of applying for UC will end your Tax Credits regardless of whether or not you are entitled to any UC.

You haven't said anything about savings. Savings are ignored for Tax Credits but any savings/capital over £6000 will reduce UC payable and if over £16,000 you are excluded from receiving UC - but the act of applying would still end Tax Credits.

Did you include the rent details when you used the calculator? If so that would make a big difference to the entitlement because you are not currently getting Housing Benefit. 

poppy12345

As your UC will include the housing element, you will have a non dependant deduction of £75.53 per month for your son/daughter that lives at home because they work.

poppy12345

Don't forget also as mentioned previously the standard allowance has been increase by about £20 per week due to Covid and this is due to be removed from October 2021 so bear that in mind too when doing the calculation.

Jobfromhome

no we have no savings

Jobfromhome

i have applied just about to press submit but it didnt give me an award total, how do I get that confirmed before I apply?

I mean does 380 pounds a week sound right to you with the details I gave above?

calcotti

Jobfromhome said:

i have applied just about to press submit but it didnt give me an award total, how do I get that confirmed before I apply?

You can’t.

To calculate your award we need to know the monthly net earnings and the amount of your rent.

The maximum amount will be made up of a standard allowance, four child elements and the housing element. 

The housing element will be the lower of your rent or the relevant Local Housing Allowance for your postcode https://lha-direct.voa.gov.uk/Search.aspx less the housing cost contribution referred to by poppy.

There will then be an earnings deduction calculated as the net earnings minus £292 x. 63%.