Soon going to be migrated from Tax credits to Universal credit.

anotherquestion

Hi folks,

My partner and I receive child tax credits which is to end soon according to a note from DWP that we received a few days ago, also stating that we should expect a letter soon with a date on it, and we need to apply for Universal credit by that date. If we don't tax credits will stop.

It also goes on to explain that we may be able to get the same amount as tax credits for a year, even if we are not entitled to Universal credit.

We aren't entitled to Universal credit because savings are above £16k so partner and I are debating whether to apply for UC or not.   

We understand that we have to create an account online and probably fill our details that way as well. 

Could actually applying for this managed transitional protection to UC (if that is the right term) be more trouble than its worth, having to get bank statements etc We are currently paying back  an overpayment in tax credits for last year, which is being deducted from this years tax credits payment.

Thanks a lot for any advice.

Newcad

There is a protection in place so that even those with over £16k in savings will still be able to migrate to UC from Tax Credits.

That protection will only last for 12 months though and if you still have over £16k at the end of 12 months then entitlement to UC will end.

You do have to wait for the managed migration letter with the date on it. If you appply for UC before you get that letter then the protection will not apply.

Any savings between £6k and £16k will still mean there will be an amount deducted from UC for savings which with over £16k will reduce UC by £174 a month (current rates until next April).

In the end the advice has to be that when you get the letter then apply for UC.

To paraphrase an old saying: "If in doubt then claim".

Even if UC is only paid for 12 months at a reduced rate it's better than the nothing if you don't claim UC.

EDIT-  When you claim UC the collection of TC overpayments will also be transferred from the HMRC to DWP 'Debt Management'  and so will further reduce what UC you get paid (until the overpayment is paid back). But if you don't have UC they may/will still be chasing that overpayment by other methods.

anotherquestion

Thanks so much Newcad for that in depth reply. Its appreciated. Do you know if they usually ask you to send bank statements as regards savings or mainly ask if you have over £16k.

Newcad

Sorry I'm not sure about how that works with a migration from TC with over £16k.
You would think that if you say you have over £16k they would take your word for it, not least because how much over £16k makes no difference to how much will be deducted for savings.
But the DWP is a beuracracy after all, so no doubt they will still want to see proof for themselves in the form of bank statements.