Universal Credit or Tax Credits. Role change at work.

AshleyJD

Hiya everyone

First time posting but thought this was going to be a great place for some help. 

I work for Greggs(9 years) and used to be an Assistant Manager. Unfortunately in November Gregg's made my role 'redundant' and I'm now a Supervisor (either leave the company with a payoff or take the role change). I took the role change as I couldn't afford to be out of work. 

My salary used to be £25000+ a year which as off the 31st of March drops to £15500 a year. I lost my job, salary and hours. 

We have 3 kids. 17, 15 and 13. My partner is unemployed at the moment. 

The only thing we received with my previous wages was child tax credits and child benefit. 

I'm not unsure as to whether to continue with tax credits or switch over to UC. 

I've done the calculators and spoken with a couple benefits advisors who both advised that if I could manage to just stick with tax credits but doing that I've no idea how we afford rent/council tax and bills etc. 

Our rent is £425 and council tax £145 a month. 

I know that applying for UC will end my TC claim but right now all I get is child tax credits so can anyone answer that even if UC says I'm not entitled to anything do I still get the child element or if they knock me back will I lose everything?

We have no savings. Any help or advice would be really appreciated. I thought my job was entirely stable and that I'd never have to claim any help with rent etc. 

Thanks very much. 
Ashley

calcotti

You can't pick out separate bits of UC. It is one award made up different parts. If you are not entitled to UC you get nothing.

What are the calculators telling you?

Spoonie_Turtle

What happened when you used the benefits calculators?  Were you entitled to UC according to those?

AshleyJD

Hiya. Yeah according to the calculators I'd be better off on UC because of the housing elements etc but the advisors I spoke with told me not to apply and see if I could manage with just my tax credits.

I'm waiting to see what my new tax credits award will be but likely it'll be based on last year's earnings instead of what I'll earn this year so doubt it'll be enough to keep us going until next year when it'll be based on this year's earnings. 

Spoonie_Turtle

AshleyJD said:

Hiya. Yeah according to the calculators I'd be better off on UC because of the housing elements etc but the advisors I spoke with told me not to apply and see if I could manage with just my tax credits.

I'm waiting to see what my new tax credits award will be but likely it'll be based on last year's earnings instead of what I'll earn this year so doubt it'll be enough to keep us going until next year when it'll be based on this year's earnings. 

What advisers did you talk to?  Did they give any indication of why you shouldn't claim the more money you would be entitled to?
Tax Credits you should update them because that's a change of more than £2500 a year.

Unless you have savings above £6000 or own a property you don't live in or something like that, I don't know why UC would be a mistake if it would give you more money.  You can't ever go back onto Tax Credits if you do claim UC which is why you need to be absolutely certain it's right for you before deciding to apply.

calcotti

AshleyJD said:

...the advisors I spoke with told me not to apply and see if I could manage with just my tax credits.

Did they explain their advice? Telling you that without explaining why that might or might not be a good thing to do is very poor advice.

AshleyJD

They basically said that UC messes you around. 

I'm hoping that my wages will stay monthly rather than move to weekly which I think would help with UC. 

Is there an actual UC calculator. I've used turn2us and entitled to. 

I'm just scared that if I apply for UC and they say I'm not entitled that I'll lose the kids side of the money too. It's all a bit confusing. Wish I just still had my original job. 

calcotti

AshleyJD said:

They basically said that UC messes you around. 

All benefits sometimes mess you around. UC is much more responsive to circumstances because it is calculated monthly whereas, as you know, Tax Credits are calculated on an annual basis which makes them less responsive and can result in underpayments oroverpayments.

AshleyJD said: Is there an actual UC calculator. I've used turn2us and entitled to. 

Those are the best two. Did they give you the same answer?

oh_really

Sounds as if your employer may have handled this situation to your detriment, no offer of pay protection, marking time, etc.

Where was trade union in this, you are a member?

Spoonie_Turtle

Who are these advisers?  Sounds like they need to be retrained and stop giving people 'advice' in the meantime.  Who knows how many people are missing out on extra help because these 'advisers' have put them off for no specific reason?!

AshleyJD

Yes they both gave the same amounts. Both had me getting more from UC. 

Yes I'm part of the Union and there wasn't anything that could be done as the company we're getting rid of the role profile. Payment protection was put in place until march but at the reduced contracted hours on the old wage which still resulted in a 4k loss on wages which have now dropped dramatically. 

After speaking with the tax credits office they advised that my award will be based on somewhere between last year's wage and this year's wage so until probably 2022 I'll not be any better off with tax credits because then they'll actually be based on what I'll earn this year. 

I feel like UC might be the way to go but just needed a bit of advice before applying as I know it'll stop my tax credits award and that I'll never be able to go back. 

Thanks so much for trying to help me. I feel like such an idiot not knowing these things.