Can I claim Universal Credit?

nomoredebt

In April '22 our tax credits were stopped as my husband had decided to pull down his pension which pushed his earnings over the limit.  We ended up having to pay back everything we were given in 21/22.  This year he has drew down the rest of his pension so that it paid off the mortgage.  

My question is if I try and claim universal credit from April will what he has earned in 22/23 be taken into account or will they look at what he will be earning?

tacpot12

Your UC claim should be evaluated based on your current financial situation when you claim (it works differently to Tax Credits in this respect), but you can also expect your claim to be studied to see if he should be regarded as having any income or capital that he doesn't currently have. 

Is there a reason why he paid off the mortgage in the last tax year? 

Have you used a benefits calculator like the one at EntitledTo.co.uk to check to see that you would be able to claim Universal Credit with your finances as you expect them to be in April? 

calcotti

UC is calculated on a monthly basis using the income received on that month. Pension drawn down and used to pay off a mortgage has no impact on a UC claim made now. However if you have joint capital/savings over £16,000 excludes you from UC (the house you live in is ignored).

nomoredebt

Thankyou @tacpot12 I was unaware he was drawing down his pension.  Because of the consequences of what he did was stop all benefits he thought the best thing would be to use what pension money he had left, and pay off the mortgage with it.

I have been onto a Benefits calculator and it does show that we would be entitled given our current income (we have 2 kids as well).

poppy12345

tacpot12 said:

Is there a reason why he paid off the mortgage in the last tax year? 

That's irrelevant for a claim for UC now anyway because as calcotti advised, paying off debt, including a mortgage is allowed when claiming UC.

tacpot12 said:

Have you used a benefits calculator like the one at EntitledTo.co.uk to check to see that you would be able to claim Universal Credit with your finances as you expect them to be in April? 

Why do they need to wait until April? UC is based on earnings received each month. It has nothing to do with annual income.

nomoredebt said:

I have been onto a Benefits calculator and it does show that we would be entitled given our current income (we have 2 kids as well).

If it shows there's entitlement then you should definitely claim now and not wait until April.

nomoredebt

poppy12345, thankyou.  I have always claimed tax credits so used to the renewal system and needing a p60.  In that case I will get on with putting a claim in