Tax credits to Universal credit

Hi2928828292

Ні,

For anyone who has moved from child Tax credits to UC.

Are your payments less than Tax credit even with transactional protection?

It seems that UC deducted a lot more whereas tax credit didn't and my dad's getting £400 less a month on UC than tax credits.

However, I thought with UC you're entitled to the same amount.

If anyone else has moved are you receiving the exact same payments or less?

Thank you 

Thisisthelife

I will be watching with interest im due to migrate jun-sept esa support group

poppy12345

Thisisthelife said:

I will be watching with interest im due to migrate jun-sept esa support group

Unless you're claiming Tax credits, those that are claiming Income Related ESA are not expected to migrate across until at least 2028. 

Newcad

Hi2928828292 said:

Ні,

For anyone who has moved from child Tax credits to UC.

Are your payments less than Tax credit even with transactional protection?

It seems that UC deducted a lot more whereas tax credit didn't and my dad's getting £400 less a month on UC than tax credits.

However, I thought with UC you're entitled to the same amount.

If anyone else has moved are you receiving the exact same payments or less?

Thank you 

You are supposed to be (doesn’t always happen) entitled to the same amount as a 'top line' entitlement as before.

However that top line is then subject to the normal UC deductions, and if you have income from work or elsewhere, or have savings of above £6k, then that means that the UC payable will be less than that top line because of deductions.

Tax Credit didn't have the same deductions rules.

Hi2928828292

@Newcad My dad has his private pension and my mum and him claim carer allowance but tax credit were aware off this. I still don't understand how his payments are £400 less even when his tax credit award letter says for 2024 he would of been getting £900 on tax credit in April 2024 but he's getting £500 on Universal credit. Surely this ain't correct with transactional protection.

Thisisthelife

poppy12345 said:

Thisisthelife said:

I will be watching with interest im due to migrate jun-sept esa support group

Unless you're claiming Tax credits, those that are claiming Income Related ESA are not expected to migrate across until at least 2028. 

yes on rax credits for one child

Yamor

Hi2928828292 said:

@Newcad My dad has his private pension and my mum and him claim carer allowance but tax credit were aware off this. I still don't understand how his payments are £400 less even when his tax credit award letter says for 2024 he would of been getting £900 on tax credit in April 2024 but he's getting £500 on Universal credit. Surely this ain't correct with transactional protection.

It is very likely the pension income was not taken into account for the TP calculation, and possibly also the Carer's Allowance income. This is despite them all being taken into account in the actual UC award itself.
I would request a breakdown of the TP calculation on the journal, and simultaneously request a mandatory reconsideration.

Newcad

The pension income will be being deducted from the UC eligible amount, any Payment for CA will also be being deducted.

As those are 'unearned income' then they will be deducted £ for £ from the UC payable.

Although you mention the private pension and CA, you don't say if your dad or mum are also working.
If they are then there will probably also be a deduction for wages earned.

When did they migrate to UC?

If this is the first UC statement it is possible that a TE has not been added yet and will be later, although it's also possible that they just haven't done one, or done it incorrectly.
(Note that a private pension is not benefits, it's a private income, so would not be included in a TE calculation which is about the benefits that you were getting before migration).

As a first step you need to check their UC statement,
Under 'What you're entitled to' it breaks down how much they are entitled to for each element, that should tell you if a Transitional Element is being paid and if so how much.
There will then be a line saying 'Total entitlement before deductions'. That's the figure that should be the same/similar to the total of what benefits and TC's they were getting before.
Then under 'What we take off (deductions)' it should tell you how much is being deducted for the pension income, how much for CA, and how much for any other deductions.

You have to remember that UC has different rules from the old benefits and TC's, particular when it come to the treatment of earnings and unearned income.
So while a TE may be added to UC so that your benefits 'Entitlement' is the same as before, the normal UC rules on income then apply to that 'entitlement' which can/will reduce the amount that is payable.

Hi2928828292

Thanks for your message 
I need some help! 
So this is my parent's situation 

My mum and Dad are both under state pension age.
My Dad has a private pension which he gets £545pm
My parents live in there house outright. .

Both my mum and Dad receive CA which is £307 each month PM due to looking after disabled people. My brother who is 23y is disabled and my parents child who is 16y is disabled aswell. 

My dad and mum are legal guardians to my sister's children due to her passing away. 

My parents have been claiming tax credit and we're told to move to UC which they did and the payments are £400 less a month. 
My parents was getting £929.61 per month on UC and are now receiving £575. We have appealed this and have been unsuccessful. 

My parents have 3 dependents 
1st Child aged - 16y ( disabled child) other 
2nd Child aged - 17y
3rd child aged - 19y. ( is currently doing an apprenticeship left education in August 2023)
On my parent's TC award letter dated August 2023 it says they would have been receiving £ £929.61 with them until August 2024 but since moving to UC it’s now £575. This is a massive jump which my parents can't afford. 
This is the UC statement showing the breakdown. 

We contacted Citizens Advice they told us to send this message we did and they told us to sene this message. 

Dear Sir / Madam I am asking you to reconsider your decision in which you stated that my UC entitlement is £1785.83 monthly. I believe the UC transitional element (TE) is about £132.78 a month below what it should be. In addition, TE should have used my current yearly income figure rather the previous tax years figure. This is because although the tax credit entitlement was based on previous year income, arguably, tax credits should have had up to date information on uprated benefits (like carers allowance) on migration day. Arguably, this should have informed the income assumptions made under reg 54 UC(TP) regs 2014. Please could you send me the breakdown of how TE was calculated. I believe my UC entitlement should be higher. Thank you for your consideration in this matter. I look forward to your reply; if you require further information, please contact me via my UC journal. Please could you send me a written statement of reasons for your decision. Yours faithfully

and UC responded with this. 

Hi We have received an update. You will need to take your query up with Tax Credits regarding your current yearly income figure on how your Tax Credits were calculated. We have to use the information that Tax Credits have given us to calculate your award and this what we have done as it is policy and we are unable to change this. Please note Universal Credit uses real time information as fed through from HMRC. In respect of the calculation of your Transitional Protection we can confirm it has been calculated correctly. We understand that you would have been paid for Hamza up to their 20th birthday but with Universal Credit it stops following the August of their 19th birthday. For the above reason the Transitional Protection will not cover the shortfall you are referring to because it is Universal Credit Policy and nothing to do with how the Transitional Protection has been calculated. If you would like to query the policy please find attached a link for you to report the matter: Kind regards

Any advice would be appreciated on the next steps 

Thank you! 

poppy12345

Hi2928828292 said:

My parents have 3 dependents 
1st Child aged - 16y ( disabled child) other 
2nd Child aged - 17y
3rd child aged - 19y. ( is currently doing an apprenticeship left education in August 2023)
On my parent's TC award letter dated August 2023 it says they would have been receiving £ £929.61 with them until August 2024 but since moving to UC it’s now £575. This is a massive jump which my parents can't afford. 
This is the UC statement showing the breakdown. 

I believe the issue here is the 19 year old is no longer a dependent child. They have left full time education. Not only that, if they were still in full time education the child element of UC is only paid up until September following their 19th birthday. 

As they left full time education then they should have reported that to Tax credits and their award would have been recalculated with the 19 year old removed from their claim. Did they report the changes to them?

Were you meant to add details of the UC statement because I don't see anything. 

Newcad

This is the UC statement showing the breakdown.

Did you forget to add it?