So much worse off when tax credit ends and UC starts

Cutgrass

nannytone_2 said:

Unearned income reduces UC pound for pound.  Earned income reduces it by the 55 p per pound taper rate

Thanks for that but it still doesn't make any difference. Its just about the free school dinners and free prescriptions, I need to know about.  

Cutgrass

peteuk said:

Can i ask if the PHI is voluntary or does your employment require it?  Also i assume you get SSP is this to boost your income back to normal levels if long term sick?

No i don't get any SSP The PHI was part of my employment 

Spoonie_Turtle

Cutgrass said:

nannytone_2 said:

Unearned income reduces UC pound for pound.  Earned income reduces it by the 55 p per pound taper rate

Thanks for that but it still doesn't make any difference. Its just about the free school dinners and free prescriptions, I need to know about.  

It does make a difference, to how much UC you'll get (and thus how much/whether you'll be worse off).

The guidance I can find for school dinners does say net earned income, of £7,400/year.  For prescriptions the earnings threshold is £935/month if you have children or LCW.

Cutgrass

Spoonie_Turtle said:

Cutgrass said:

nannytone_2 said:

Unearned income reduces UC pound for pound.  Earned income reduces it by the 55 p per pound taper rate

Thanks for that but it still doesn't make any difference. Its just about the free school dinners and free prescriptions, I need to know about.  

It does make a difference, to how much UC you'll get (and thus how much/whether you'll be worse off).

The guidance I can find for school dinners does say net earned income, of £7,400/year.  For prescriptions the earnings threshold is £935/month if you have children or LCW.

I don't think I get any either way. So will be £560 per month worse off. So for free prescription is that £935 earned income?

Spoonie_Turtle

Cutgrass said:

Spoonie_Turtle said:

Cutgrass said:

nannytone_2 said:

Unearned income reduces UC pound for pound.  Earned income reduces it by the 55 p per pound taper rate

Thanks for that but it still doesn't make any difference. Its just about the free school dinners and free prescriptions, I need to know about.  

It does make a difference, to how much UC you'll get (and thus how much/whether you'll be worse off).

The guidance I can find for school dinners does say net earned income, of £7,400/year.  For prescriptions the earnings threshold is £935/month if you have children or LCW.

I don't think I get any either way. So will be £560 per month worse off. So for free prescription is that £935 earned income?

The NHSBSA info page refers to 'take-home pay' which I've only seen used for earned income
https://www.nhsbsa.nhs.uk/check-if-youre-eligible-help/getting-benefits/hwhc-universal-credit

Yamor

It is earned income. But you have to have an award of UC for this to be relevant. If you have no UC at all due to unearned income, then having zero earned income won't be sufficient.
You may be able to apply for help under the low income scheme (using the HC1 form).

Cutgrass

Yamor said:

It is earned income. But you have to have an award of UC for this to be relevant. If you have no UC at all due to unearned income, then having zero earned income won't be sufficient.
You may be able to apply for help under the low income scheme (using the HC1 form).

All seems very unfair to leave a disabled family £560 less per month also not to be able to get free prescription. Very very wrong 

Spoonie_Turtle

Yamor said:

It is earned income. But you have to have an award of UC for this to be relevant. If you have no UC at all due to unearned income, then having zero earned income won't be sufficient.
You may be able to apply for help under the low income scheme (using the HC1 form).

Not with over £16,000 in savings.

OP, I'm sorry and I know it feels unfair, but this is the reality.  Any families in exactly the same financial situation but who didn't claim Tax Credits before the deadline for new claims will have been worse off for about 5 years at this point.  In the wider scheme of things, you've been fortunate to be able to claim the more generous benefit until now.   EDIT: I misunderstood the circumstances right from the start, my apologies.

Are you definitely not entitled to anything from UC, not even if you qualify for the LCWRA element?  If you haven't already, I'd advise putting your details into benefit calculators as if you have no savings, so that doesn't distort the calculation (because transitional protection is supposed to help there).  Also make sure to include that you have a health condition that prevents you from working, or whatever the wording is for each calculator.

If the result is still nothing, then the government deems that you have the means to live (including your savings) and there's not much you can do about it.  The elected government at the time wrote and approved the rules for a stricter benefit than Tax Credits, and has subsequently set the thresholds for what is sufficient income for people to live, so that's what the country got.

Edit: no I may have been wrong; if you don't already claim PIP then looking into it and maybe applying might be something you could do.

Cutgrass

Cutgrass said:

Yamor said:

It is earned income. But you have to have an award of UC for this to be relevant. If you have no UC at all due to unearned income, then having zero earned income won't be sufficient.
You may be able to apply for help under the low income scheme (using the HC1 form).

All seems very unfair to leave a disabled family £560 less per month also not to be able to get free prescription. Very very wrong 

So what would happen if my wife got a part time job earning a couple of hundred a month. So then we would have some earned income would that make a difference to the free prescription.  Sorry for all the questions just trying to work out how to make the best of this terrible mess.

Yamor

Spoonie_Turtle said:

Yamor said:

It is earned income. But you have to have an award of UC for this to be relevant. If you have no UC at all due to unearned income, then having zero earned income won't be sufficient.
You may be able to apply for help under the low income scheme (using the HC1 form).

Not with over £16,000 in savings.

Why do you think the OP has £16k of savings?