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

Spoonie_Turtle

Jobfromhome said:

so im really useless with figures if I get 233 a week now. with my UC award and having to pay the rent out of it how much better off will we be?

I wont be paying our rent out of our normal money either just from our UC?

This is on top of your husband's wages, just like Tax Credits are on top of your husband's wages.  You already pay the rent from the total money you receive, so don't get distracted by that.

Jobfromhome said:

so if the award is 345 a week we pay our rent out of that that still leaves 205 which is less than our usual tax credits and CB weekly amount of 233. But our rent has been paid 

im having trouble working out how better off will be

calcotti revised it with the deduction for your eldest to 327.  You said you get 170 in TC per week.

So the amount you would be better off by is
327 - 170 = 157 if these calculations are all correct.  In September/October that will drop to ~307 UC, so you will then be better off by 137 per week.

You said you have no savings - just to check, you don't own a home that you rent out or anything like that?  No other income of any kind?  (Gifts don't count, e.g. birthday/anniversary money etc.)

Jobfromhome

and just to clarify child benefit is not included in the UC amount? thats seperate?

poppy12345

Jobfromhome said:

and just to clarify child benefit is not included in the UC amount? thats seperate?

Correct...

poppy12345

Also one thing to remember is that if your partners earnings fluctuate each month then so will the UC payments. UC is based on earnings received during your monthly assessment period, unlike tax credits, which are based on annual earnings.

calcotti

Here's my calculation

housing £140/week = £606.67/month. Less housing costs contribution £75.53. Housing element £531.14

Earnings £1,400.00. Work Allowance £293.00. Earnings taken into account £1,107.00. Earnings deduction £697.41

standard allowance £596.58, child 1 £282.50, children 2 - 4 (3 x £237.08) £711.24, housing £531.14. Maximum UC = £2.121.46

Earnings deduction £697.41. UC payable £1,424.05 per month (equivalent to £328.63 per week)

Benefits cap does not apply because over earnings threshold.

Jobfromhome

Spoonie_Turtle said:

Jobfromhome said:

so im really useless with figures if I get 233 a week now. with my UC award and having to pay the rent out of it how much better off will we be?

I wont be paying our rent out of our normal money either just from our UC?

This is on top of your husband's wages, just like Tax Credits are on top of your husband's wages.  You already pay the rent from the total money you receive, so don't get distracted by that.

Jobfromhome said:

so if the award is 345 a week we pay our rent out of that that still leaves 205 which is less than our usual tax credits and CB weekly amount of 233. But our rent has been paid 

im having trouble working out how better off will be

calcotti revised it with the deduction for your eldest to 327.  You said you get 170 in TC per week.

So the amount you would be better off by is
327 - 170 = 157 if these calculations are all correct.  In September/October that will drop to ~307 UC, so you will then be better off by 137 per week.

You said you have no savings - just to check, you don't own a home that you rent out or anything like that?  No other income of any kind?  (Gifts don't count, e.g. birthday/anniversary money etc.)

you see where you wrote 

327 - 170 = 157 if these calculations are all correct.  In September/October that will drop to ~307 UC, so you will then be better off by 137 per week.

that would be a drop of over 75 pounds a week wouldn't it?

calcotti

Jobfromhome said: you see where you wrote 

327 - 170 = 157 if these calculations are all correct.  In September/October that will drop to ~307 UC, so you will then be better off by 137 per week.

that would be a drop of over 75 pounds a week wouldn't it?

As advised earlier in the thread the UC will drop later in the year for two reasons.
1) One of your children will be removed from the claim. That will reduce UC by £237.08/month (equivalent to £54.71/week). You will also see a drop in Child Benefit.
2) Under current regulations UC will drop for all claimants by £86.67/month in October (£20/week).

poppy12345

Jobfromhome said:

Spoonie_Turtle said:

Jobfromhome said:

so im really useless with figures if I get 233 a week now. with my UC award and having to pay the rent out of it how much better off will we be?

I wont be paying our rent out of our normal money either just from our UC?

This is on top of your husband's wages, just like Tax Credits are on top of your husband's wages.  You already pay the rent from the total money you receive, so don't get distracted by that.

Jobfromhome said:

so if the award is 345 a week we pay our rent out of that that still leaves 205 which is less than our usual tax credits and CB weekly amount of 233. But our rent has been paid 

im having trouble working out how better off will be

calcotti revised it with the deduction for your eldest to 327.  You said you get 170 in TC per week.

So the amount you would be better off by is
327 - 170 = 157 if these calculations are all correct.  In September/October that will drop to ~307 UC, so you will then be better off by 137 per week.

You said you have no savings - just to check, you don't own a home that you rent out or anything like that?  No other income of any kind?  (Gifts don't count, e.g. birthday/anniversary money etc.)

you see where you wrote 

327 - 170 = 157 if these calculations are all correct.  In September/October that will drop to ~307 UC, so you will then be better off by 137 per week.

that would be a drop of over 75 pounds a week wouldn't it?

Yes because of the standard allowance potentially being reduced as per Government rules and the child element being removed for your 18 year old daughter.

poppy12345

calcotti said:

Earnings £1,400.00.

OP said their partner earnings £25,000 a year or have a got that wrong?

Jobfromhome

poppy12345 said:

calcotti said:

Earnings £1,400.00.

OP said their partner earnings £25,000 a year or have a got that wrong?

yes about 25k a year he gets 1400 a month take home