Reporting change in hours prior to WTC migration to UC - what happens?

My partner and I get working tax credits and have done for many years.  I am 64 and work 18 hours a week and she currently works 30 hours, therefore we get the 30 hour bonus payment.  In December she will be 60 and is looking to change her working hours to 16 which, as I understand the rules, still means we qualify for the tax credits award but not the 30 hour element which we fully expect. 

We have recently had the flyer advising us to get ready for the Universal Credit move and I see on there that as long as we get a UC Migration Notice from DWP we would qualify for transition protection for a year if the UC amount we are due is less.  However, I also read elsewhere that anyone making any adjustments to their WTC claim, i.e. change of income or hours worked etc, would skip the migration and be switched to UC via the normal process as a new UC claim. 

My question is if my partner notifies WTC that she is reducing her hours from 30 to 16 before we get our migration notice does this mean that they will switch us straight on to UC without us going through the migration process and, therefore, we would lose that transitional protection?  Should we just wait until we get the migration notice to make any changes to the claim? (my partner could work 30hours for a few more months after her birthday if it stops any issues arising). 

There seems to be a lot of misinformation around and would like to hear others experiences or opinions so any help or advice would be much appreciated.   Many thanks.


Comments

  • poppy12345
    poppy12345 Posts: 17,714
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    A change in hours or Income is not classed as a change of circumstances that will prompt a move to UC. 

    When you do claim through managed migration whether there's any entitlement to Transitional Protection (TP) will depend on the figures. If there is entitlement then how long it last for will depend on your circumstances but it's not limited to a maximum of 1 year.The TP will erode over time so if you become entitled to other elements or other elements increase then the TP will decrease until such a time it will erode completely.

    Some will see it erode much quicker than others and it will really depend on your circumstances.
  • cutho
    cutho Posts: 68
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    You will still be working  over 30hrs between  you should still get 30hr element 

  • Newcad
    Newcad Posts: 788
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    The confusion about 1 year is because of a different protection, it's not the Transitional Element.
    The 1 year protection is for those on Tax Credits who have over £16,000 in savings/capital.
    That £16k plus would normally mean they would not be entitled to any UC at all, so in Managed Migration from Tax Credits, and only in MM from Tax Credits once you have had the letter, any savings/capital over £16k will be disregarded (ignored) for 12 months so that UC can be paid for those 12 months. Any savings over £6k and under £16k will still be counted and will reduce the amount of UC payable. (It's only the part over £16k that will be ignored for 12 months).
  • A change in hours or Income is not classed as a change of circumstances that will prompt a move to UC. 

    When you do claim through managed migration whether there's any entitlement to Transitional Protection (TP) will depend on the figures. If there is entitlement then how long it last for will depend on your circumstances but it's not limited to a maximum of 1 year.The TP will erode over time so if you become entitled to other elements or other elements increase then the TP will decrease until such a time it will erode completely.

    Some will see it erode much quicker than others and it will really depend on your circumstances.
    Thank you poppy12345 for getting back to me - it's good to know the change of hours and income will not trigger a move to UC.  Tell me, I had looked everywhere to find this out - is there an official area that confirms this online? Your point about the TP is fair enough - I'm really not certain we will be worse off, calculators seem to indicate that but it's really a case of waiting and seeing once we've migrated I suppose.
  • cutho said:
    You will still be working  over 30hrs between  you should still get 30hr element 

    Thanks cutho - we don't have children at home now so apparently the 30hr element is only payable if one of us works over 30 hours a week. If kids were still here then it would be 30 hours between us.
  • Newcad said:
    The confusion about 1 year is because of a different protection, it's not the Transitional Element.
    The 1 year protection is for those on Tax Credits who have over £16,000 in savings/capital.
    That £16k plus would normally mean they would not be entitled to any UC at all, so in Managed Migration from Tax Credits, and only in MM from Tax Credits once you have had the letter, any savings/capital over £16k will be disregarded (ignored) for 12 months so that UC can be paid for those 12 months. Any savings over £6k and under £16k will still be counted and will reduce the amount of UC payable. (It's only the part over £16k that will be ignored for 12 months).
    Thanks Newcad - the leaflet says " if the amount you are entitled to on Universal Credit is less than your existing benefits, a top up payment is available - this is called transitional protection." Then on the next page it says "If you have over £16,000 in money, savings or investments...you can still be eligible for UC for one year after you move across."
    I'm taking this to mean that the TP is payable if either it works out I am due less than I get on WTC or I have more than £16k in savings - which I don't.  I hope I'm understanding that right?
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