Universal credits and childcare vouchers saved up

Avalanche123

Thanks everyone, I have contacted CAB and they will be ringing me tomorrow or Tuesday. I will update you as to what they said.

calcotti

If you claim UC it is all done online and your journal is how you and UC exchange messages and receive information and instructions.

poppy12345

Avalanche123 said:

Thanks everyone, I have contacted CAB and they will be ringing me tomorrow or Tuesday. I will update you as to what they said.

What advise are you hoping for other than what you've already been advised here?

calcotti

I don’t understand what the issue is. You said you aren’t claiming UC. Use the vouchers you have to pay for childcare now and when they are used you can claim UC (if you eligible).

Nor do I understand why you you would seek advice on a forum and then disagree with the advice (which has been consistent between those who have offered advice).

However, please do let us know what CA say.

marcia_

Avalanche123 said:

calcotti said:

Avalanche123 said:

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if you have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if yu have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

I dont think that is right. You can use the money saved up in Tax free childcare towards savings. Why would this be dfferent? We are not in receipt any longer

Avalanche123 said:

From entitled to calculator: 

What to include as savings

You should enter as savings any money that you can access relatively easily or financial products that can be sold on. The definition of savings for the means test in benefits includes:

• money in a Tax Free Childcare account (enter 80% of value)

It's a replacement scheme for childcare vouchers, the same thing.

A Tax Free Childcare Account is a completely different scheme to childcare vouchers. You may see it as a 'replacement scheme' but it is not the same.

UC is a 'replacement scheme' for income based ESA, income based JSA and IS but nobody would say taht they are the same thing.

You asked for advice but appear to have already made up your mind. If in doubt ask UC through your journal.

I dont know what a journal is, I am not claiming yet.

It just seems very unfair.

 How is it unfair for you to receive a refund of money you have not paid out? 

Avalanche123

marcia_ said:

Avalanche123 said:

calcotti said:

Avalanche123 said:

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if you have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if yu have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

I dont think that is right. You can use the money saved up in Tax free childcare towards savings. Why would this be dfferent? We are not in receipt any longer

Avalanche123 said:

From entitled to calculator: 

What to include as savings

You should enter as savings any money that you can access relatively easily or financial products that can be sold on. The definition of savings for the means test in benefits includes:

• money in a Tax Free Childcare account (enter 80% of value)

It's a replacement scheme for childcare vouchers, the same thing.

A Tax Free Childcare Account is a completely different scheme to childcare vouchers. You may see it as a 'replacement scheme' but it is not the same.

UC is a 'replacement scheme' for income based ESA, income based JSA and IS but nobody would say taht they are the same thing.

You asked for advice but appear to have already made up your mind. If in doubt ask UC through your journal.

I dont know what a journal is, I am not claiming yet.

It just seems very unfair.

 How is it unfair for you to receive a refund of money you have not paid out? 

What refund? TFC can be counted towards savings even though you can use it only towards childcare but childcare vouchers cant? So if you have 5K in TFC or indeed actual money you will receive everything. But if you have money in childcare vouchers you wont get the help? Does that sound fair to you?

Avalanche123

calcotti said:

I don’t understand what the issue is. You said you aren’t claiming UC. Use the vouchers you have to pay for childcare now and when they are used you can claim UC (if you eligible).

Nor do I understand why you you would seek advice on a forum and then disagree with the advice (which has been consistent between those who have offered advice).

However, please do let us know what CA say.

Its exactly the issue I have described in the above reply to marcia. If I would actual money saved up no one cares (as long as it is bellow 6K).

I am worried that now my husband left I will be struggling. I have no savings, no relatives or friends to help in 1000 miles radius and I feel that because I saved up vouchers as opposed to cash I am being penalised.

poppy12345

I don't know why you keep mentioning TFC because you can't use that with UC. You haven't missed out on anything because you have the child care vouchers. You can still claim UC if there's any entitlement to it, which has been advised a few times through out the thread.

NedS

Avalanche123 said:

What refund? TFC can be counted towards savings even though you can use it only towards childcare but childcare vouchers cant? So if you have 5K in TFC or indeed actual money you will receive everything. But if you have money in childcare vouchers you wont get the help? Does that sound fair to you?

You keep making reference to this and I'm confused - or rather I think you may be confused.

The regulations/guidance you quoted on page 1 of this thread are saying that any money you have in a Tax Free Childcare account are counted as capital (savings) that you have, along with cash in your bank accounts / savings accounts / ISAs etc. The is relevant only to the fact that if you have more than £6000 / £16,000 in capital (savings), you will receive less or no UC due to the savings you have. The money in a TFC account can be withdrawn and used for anything, but you will only get the 80% back that you contributed, not the 20% tax relief.

The point here is that you can only get 'help' with childcare costs once, under one scheme. So if you pay for childcare costs using TFC account or childcare vouchers, you have received help towards those by way of tax relief and cannot then also claim for help with the amount under UC (as this would be double claiming). If you claim help through UC you will receive help by way of UC refunding 85% of the eligible costs. But you can only receive help under one scheme, and which scheme that is will depend upon your circumstances.

Avalanche123

poppy12345 said:

I don't know why you keep mentioning TFC because you can't use that with UC. You haven't missed out on anything because you have the child care vouchers. You can still claim UC if there's any entitlement to it, which has been advised a few times through out the thread.

There isnt. Only childcare.

You cant claim UC when you CLAIM TFC but if you have any left it counts towards your savings. But once you stop, like we did with childcare vouchers, and you have 5K of it, you will still be able to claim help with childcare. What you are saying is that this isnt possible with the vouchers.