Universal credit as a non-working homeschooler

blagoslovljena

Hello everyone 

I’m married (my husband works 35 hrs a week) and I’ve been homeschooling my four kids for ten years, since my eldest was four.

We’ve been on child tax credits for years but I’m aware that that won’t be for much longer. I don’t work (well actually I work my backside off teaching my kids, but I doubt that counts!), and I’m concerned about managed migration onto universal credit, as it looks as though we might not be eligible if I’m not in employment.

Does anyone know if this is the case or have any experience of this predicament?

pmlindyloo

No experience of this myself but found this link which may help.

Discussion: Claimant commitment when homeschooling - Rightsnet

How old are the children?

Have you checked that you would be entitled to Universal Credit?  Use a benefits calculator like www.entitledto.co.uk

It reads as if there might be some flexibility and you would certainly need to discuss this with your work coach when doing your claimant commitment.

blagoslovljena

Thanks for the link!

It does appear that I would be expected to work even though I am effectively already working full time. 😫

My children are 15, 11, 9, and 8. My eldest is currently mid-way through GCSEs. I have done a couple of benefits calculators which say that we would be eligible for UC, but they don’t say whether or not the payments would be conditional on me looking for work.

If I decided to flat out refuse to work, would they declare us ineligible for UC even though my husband works and we have four kids?

poppy12345

With your partner working 35 hours per week this will mean his earnings will be more than £567 per month, this will place you both in the light touch group so i wouldn't expect you to have to look for work. More info here. https://www.uc-advice.co.uk/further-universal-credit-information/conditionality-regime

When you first claim UC you will both be expected to attend your local job centre for your first appointment.

blagoslovljena

Crumbs, it’s fiddly isn’t it! Thanks for the info though, that’s definitely reassuring. 😅 

I wasn’t aware that people have to do the whole job centre thing though, even if they’re employed! The tax credits system seems so much less complicated from our perspective. 🤦‍♀️

One more quick question, if I may?

At the moment gift aid payments that my husband makes to charities count as a deduction from his income for tax credits purposes, so the CTC payments we receive are based on his earnings minus the gift aid giving.

Would gift aid giving be taken into account in the same way when UC is calculated?

andrewmp

I don't think you can make deductions for charity donations on UC.

Be careful with savings too, anything above £6k and they'll deduct your UC and anything above £16k they stop UC entirely.  If you are managed migrated to UC then you will get a grace period of 12 months for your savings.

Spoonie_Turtle

blagoslovljena said:

Crumbs, it’s fiddly isn’t it! Thanks for the info though, that’s definitely reassuring. 😅 

I wasn’t aware that people have to do the whole job centre thing though, even if they’re employed! The tax credits system seems so much less complicated from our perspective. 🤦‍♀️

One more quick question, if I may?

At the moment gift aid payments that my husband makes to charities count as a deduction from his income for tax credits purposes, so the CTC payments we receive are based on his earnings minus the gift aid giving.

Would gift aid giving be taken into account in the same way when UC is calculated?

No.  Tax Credits were based on taxable income (hence the name).  Universal Credit is based on net pay after income tax, NI and pension contributions.  No other pay deductions are taken into account, as far as I'm aware.

blagoslovljena

andrewmp said:

I don't think you can make deductions for charity donations on UC.

Be careful with savings too, anything above £6k and they'll deduct your UC and anything above £16k they stop UC entirely.  If you are managed migrated to UC then you will get a grace period of 12 months for your savings.

Thanks for the heads up about the savings. 

Does that mean that the amount you receive in UC payments is based on them completely ignoring your savings for the duration of the grace period?

Not that we have £16k lying around, but we have over £6k, which would ordinarily be factored in to UC calculations.

blagoslovljena

Spoonie_Turtle said:

Would gift aid giving be taken into account in the same way when UC is calculated?

No.  Tax Credits were based on taxable income (hence the name).  Universal Credit is based on net pay after income tax, NI and pension contributions.  No other pay deductions are taken into account, as far as I'm aware.

Ok that makes sense - thank you.

It’s a shame though. The main reason we’ve been able to give to charity fairly generously over the past 15 years, is because of our TC payments reflecting the fact that in doing so we then have less money to live off.

I can’t imagine the UC system will be helping charities all that much. I know we certainly won’t be able to give as much when we’re moved to UC. 😔

calcotti

blagoslovljena said:

Does that mean that the amount you receive in UC payments is based on them completely ignoring your savings for the duration of the grace period?

No. There will be a deduction for savings over £6000. However your transitional protection amount on the day of migration will be calculated to take in to account any deduction for savings on the date of transfer. Subsequent changes in the savings amount will affect the UC payable (up or down).

blagoslovljena

calcotti said:

blagoslovljena said:

Does that mean that the amount you receive in UC payments is based on them completely ignoring your savings for the duration of the grace period?

No. There will be a deduction for savings over £6000. However your transitional protection amount on the day of migration will be calculated to take in to account any deduction for savings on the date of transfer. Subsequent changes in the savings amount will affect the UC payable (up or down).

Thank you.

Hmmm, that’s awkward. The money in our savings accounts goes up and down all the time, as we keep most of our disposable income in them and transfer money in/out when we get, say, a child benefit payment, or have to pay a credit card bill.

It’s just how we function to maximise our (rather pitiful) interest.

How does HMRC deal with that situation, as I can’t imagine we’re the only ones moving money about all the time?