Migration from benefits to UC questions? Saving etc?

Spoonie_Turtle

blackstar said:

Sounds like we will be alot worse off of we switch to UC as we get about £180 per week in tax credits and if we have say 18k and working up towards a deposit to buy a house we will a) no longer be able to save for a deposit as will be much worse off and b) have to use our saving to get by each month.

Totally gutted about that. Wish they had never changed it to UC. Never be able to save for a deposit to buy a house now.

There's nothing to say you will be worse off on UC in the first year when you are eligible.  That's supposed to be the whole point of transitional protection.

If you can save up and then use the deposit within that year, you would be able to stay on UC without having to end your claim.  

Have you tried a benefits calculator or are you just assuming you'll be worse off?
(I'm not sure which ones deal with transitional protection.)

blackstar

I am assuming we will be worse off after the first year of transition as they are switching everyone over to UC in 2024 in my area and its going to take about 4 years to save up for a deposit for a house based on our circumstances now but if we switch to UC next year then that's all out the window as we will not have saved enough by the end of the transition year. 

blackstar

Going to try a benefit calculator now thanks. 

blackstar

I was going to do a benefits calculator but you can't do one if you have 16k in savings anyhow. 

poppy12345

Spoonie_Turtle said:

blackstar said:

Sounds like we will be alot worse off of we switch to UC as we get about £180 per week in tax credits and if we have say 18k and working up towards a deposit to buy a house we will a) no longer be able to save for a deposit as will be much worse off and b) have to use our saving to get by each month.

Totally gutted about that. Wish they had never changed it to UC. Never be able to save for a deposit to buy a house now.

Have you tried a benefits calculator or are you just assuming you'll be worse off?
(I'm not sure which ones deal with transitional protection.)

I don't think they take into consideration Transitional Protection.

blackstar said:

I am assuming we will be worse off after the first year of transition as they are switching everyone over to UC in 2024 in my area and its going to take about 4 years to save up for a deposit for a house based on our circumstances now but if we switch to UC next year then that's all out the window as we will not have saved enough by the end of the transition year. 

Yes, after the first year you will be worse off because the disregard for your savings will end. If you have more than £16,000 then entitlement to UC then ends.

Spoonie_Turtle

blackstar said:

I was going to do a benefits calculator but you can't do one if you have 16k in savings anyhow. 

Put it as if you have £15,900 or so (anything over £15,750).  It will do the same deduction.


In terms of after the transitional year, unfortunately those are the rules.  UC came in 10years ago, no new Tax Credits claims have been allowed for some years (2017 or 18 I think) so a lot of people have been forced to claim UC sooner, due to circumstances ending their TC claims - or like at the start of the pandemic, heeding inappropriately unnuanced advice that ended up with them substantially worse off (in many cases receiving no help at all because savings/capital made them ineligible for UC and they couldn't reopen their TC claim).

So while I do sympathise, for some perspective you will be amongst the last year of people to benefit from the more generous Tax Credits, having done so for much much longer and with a lot more financial protection than the majority of people who've had to claim UC.

HillStreetBlues

blackstar said:

I was hoping that savings from Child Disability Payments etc would be disregarded but doesn't seem like they are.

Neither Child or Adult disability benefits are designed to be saved when claiming an income related benefit. The Government deems it should be used for the needs of that person at that time.
It's certainly a big blow to those that are on TC and hoped one day to buy a home to find that due to the changes might now never happen.

blackstar

Huge blow as now can't save for a deposit once we switch over as were saving to get a property that better suits our childrens disabilities as the council and Social housing have no properties available at all. Waiting for years now. 
So we stand to loose about 190 per week once we switch over to UC. That ruin our chances of getting a property as will never be able to save enough for a deposit. 

Just did the entitled to UC calculator and put down 16k in savings and it still gave us around £400 per week UC entitlement-to-uc but that can't be right? 

Maybe it's just showing it as it would be for the first year before it will be stopped?

Very odd as it says at the start if you have over 16k you are not entitled to UC so strange. 

blackstar

Strange I did the turn to us calculation and I put down 15k in savings and it still said 
"Based on the information you have given us, you aren’t eligible to get Universal Credit because your savings or capital is too high."

But why? It it because maybe my wifes earnings are too high? She only earns 28k a year before tax and NI and my CB ESA is about 7k per year.  Is that too much for UC?

peteuk

blackstar said:

Very odd as it says at the start if you have over 16k you are not entitled to UC so strange. 

That’s because it doesn’t look at the migration.  So if I were to apply for UC without having claimed TC then I would have no protection for savings over £16K. It’s a universal calculator, which caters for all.

Two years ago, I was looking at being jobless, homeless but with a deposit size lump of savings.  Having only claimed TC when my children were young (Last claim was 2010) I was looking at no help what so ever from the government.  Our aspiration was to buy a house, thankfully managed to find a job, rented for a little while and used the savings to get the house.

The £16K limit has been in place for many years, and now with people coming over from UC it’s becoming a problem for them.  It goes the same for people with second homes who’ve been claiming TC, now given a years UC but then no (depending on the circumstances) no further UC.