Switch from tax credits to UC advice

AyeReady1985

Hi all. 

Just looking for a bit of advice. We get child tax credits just now with the disability element and I have heard the adverts suggesting that it may be financially better for you to change to UC before 2024. 

I earn 31,000. We have 2 kids one of whom is disabled and receives high rate care and low rate mobility of DLA. My wife does not work and receives carers allowance. 

We rent privately and do not receive any council tax discounts etc because of disability. 

I have done the calculator but I am still a little confused. It seems to suggest that we would be £100 per week better off but this seems to be too much I would have thought. Plus I have heard that you have to wait for payment to be made in arrears. 

I am going to call on Monday but wondered if anyone had done something similar and did it work out for the best? 

calcotti

Ringing them will not help, DWP are not advisers and cannot advise you on whether or not you would be better off,

you could try contacting a local advice agency and ask them to do a benefits check for you.
https://advicelocal.uk/

Whether or not UC or Tax Credits are more beneficial entirely depends on your circumstances. Some people will be better off on UC. In your case your UC would include a couple allowance, child element for two children, a higher rate disabled child element and a carer element. If you rent you would also get help with the rent. This will give a maximum UC amount. Her CA will be deducted and there will be a deduction of 55% of your earnings over the Work Allowance (the amount depends on whether or not you will be getting help with rent).

Any capital over £6,000 would reduce your UC and if over £16,000 you will not be able to claim UC.

UC is calculated every month so will vary if you earnings vary, unlike Tax Credits which are calculated based on your previous tax year earnings.

peteuk

Try a couple of benefit calculators, to see what they say.  I believe you will be automatically switched in the future but if it benefits you to do it now then it might be worth it. 

Good Luck

poppy12345

peteuk said:

I believe you will be automatically switched in the future

No one will be automatically switched. People will be invited to apply.

peteuk

poppy12345 said:

peteuk said:

I believe you will be automatically switched in the future

No one will be automatically switched. People will be invited to apply.

Thanks Poppy I do stand corrected, apologises for any confusion caused. 

Percy1983

poppy12345 said:

peteuk said:

I believe you will be automatically switched in the future

No one will be automatically switched. People will be invited to apply.

The plan is to move everybody in 2024, I do believe tax credit amounts will be protected so if UC is calculated as less you will receive the old tax credits amount. Past that you won't receive any cost of living increases etc until UC catches up to your amount.

Currently they are inviting people to apply for UC or as with the cost of living payments you get them much later on tax credits with might motivate people to change over.

calcotti

Percy1983 said:

poppy12345 said:

peteuk said:

I believe you will be automatically switched in the future

No one will be automatically switched. People will be invited to apply.

The plan is to move everybody in 2024, …

Should say by the end of 2024 rather than in 2024. Managed migration has started. Although I think OBR still assume it will take longer!

It’s not just Tax Credit claimants that are protected. Everybody moving from old benefits to UC will get transitional protection such that on the day of transfer they do not get less than they previously received. However the transitional protection will be eroded as benefit rates increase and/or there are changes in circumstances. Tax Credit claimants will be have capital over £16,000 for one year - but only for one  year.