Moving from Child Tax Credits to UC

Hi,

I work full time, earning 40K. Have 4 children. My wife is a housewife. We are currently getting child tax credit and child benefit for all 4 kids.


I get the following figures from the entitledto caluculator (tried all 3, get the same from other too)


I also called the citizen advice, they said that the calculators are pretty accurate but it doesnt look right to me.

First of all we dont claim housing benefit as we dont belive we are eligible for it (We pay £700 to private landlord)

I havent recived any letter for migration yet, Am i better off staying with child tax credits or consider moving to UC ? 




Comments

  • andrewmp
    andrewmp Posts: 1,734
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    edited 11 October 2023 at 6:48PM
    I would double check those figures.  It feels too high.

    If it's correct then it's a no brainer to move, presuming you don't have savings over £16k
  • The UC calculation looks right, assuming your 4 children were all born before April 2017 (which should be correct as you have to put their ages into the calculators).

    The only thing to double check is what you entered for your earnings.  What's your take-home pay, after tax and NI?

    The housing element is a part of UC that makes up your maximum award.  If you're eligible for UC and you rent then you're eligible for the housing element.
  • comeandgo
    comeandgo Posts: 5,708
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    Is your take home salary only £1,165 with salary of £40k?  
  • andrewmp
    andrewmp Posts: 1,734
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    comeandgo said:
    Is your take home salary only £1,165 with salary of £40k?  
    It'll be more, but it's tapered at 55% I'm guessing maybe fairly high pension deductions too.  Could be right.
  • Newcad
    Newcad Posts: 799
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    edited 14 October 2023 at 12:45AM
    As well as the 55p taper rate, I'd assume that there will also be a Work Allowance. (Responsibility for a child).
    Working backwards from the £1165.36 deduction given there, calculating for the 55p taper rate, and adding a Work Allowance of £379/month, I get a figure of  £29,974 a year earned income.
    Is that what you entered into the entitledto calculator as your yearly income, probably as £29,975?
    (1165.36 / 55 * 100) + 379 = £2497.84 a month income.
    £2497.84 * 12 = £29,974 yearly income.
    PS. Just because you "didn't believe" that you could get help towards your rent doesn't mean that you couldn't have been doing so if you had claimed. Many people are not claiming all the benefits that they could be.

  • peteuk
    peteuk Posts: 1,227
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    comeandgo said:
    Is your take home salary only £1,165 with salary of £40k?  
    I did a quick calculated of this as £2544 on 40K a year
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
  • Does UC not expect both parents to work, unless you have a child younger than school age or with disabilities? Will they not be expecting your wife to look for/take paid employment? To be qualifying for CTC or UC for 4 children, doesn't that mean they must all be school age by now?

    Your calculation is based on your current income, but what happens if your wife were to start working the 16 or 25 hours a week that UC may be expecting of her?

    (I might be completely wrong, so I'm sure someone more knowledgeable on UC will correct?)
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