UC and TFC


I am going back to work this week (8/6/22) after maternity leave.
Due to having 2 children I am reducing my working hours to 22.5 a week. 
I live with my partner who is in full time work however, we have thought about trying to see if we are entitled to universal credit.

We currently have a TFC account but can we still claim UC? If we can and are accepted, am I right in thinking that we just don’t reconfirm the TFC account when it’s due? The money that is in there can still be used to pay our childcare provider and we have 2 years to do this but we can’t pay anymore money in.

I’m just so confused by it all and do not want to do anything to jeopardise what we have already.

My daughter is 3 and receives the 30 hours free - this won’t be effected by anything either?
Many thanks
Kate

Comments

  • NedS
    NedS Posts: 4,295 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    You can retain the TFC account and will retain the tax free top ups until the end of the quarterly entitlement period in which you claim UC. As you state, you have up to 2 years to use the funds.
    However, when you make your claim for UC, you must declare 80% of the balance of the account (not the 20% government top up) as part of your capital along with any other capital you may have.
  • Katehol
    Katehol Posts: 2 Newbie
    First Post
    Ok so what you have in the TFC account you have to put down as your savings?
  • NedS
    NedS Posts: 4,295 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    Katehol said:
    Ok so what you have in the TFC account you have to put down as your savings?
    80% of it, yes - the bit you've paid in, not the 20% the Government have topped up as tax relief as that is not yours to withdraw.
    It is capital that you own, along with balances of any bank accounts, savings accounts, cash, ISAs, shares and any other investments you may have (other than registered pension schemes).

  • poppy12345
    poppy12345 Posts: 18,877 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper
    Have you used a benefits calculator to check entitlement? If you haven't you should do this. You will need to put details of yourself and your partner, including all savings/capital. https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=2ef7198b-655a-4383-a95b-7c5a5b8978de

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