Yet another TC to UC transition

Newcad

jadex said:

 it looks like there is an entitlement to housing element whereas it wasn't any to housing benefit.

Yes, we have seen that before on another thread.

It's a quirk that happens because of the 12 month disregard of savings over £16K when you are Managed Migrated from Tax Credits to UC.

Whereas savings above £16k prevented a claim for HB, those same savings are disregarded for 12 months in the migration to UC to allow a UC award anyway, and so the UC Housing Element is payable.

The DWP/Government are aware of the quirk but decided to let it happen anyway.

ElwoodBlues

jadex said:

ElwoodBlues said:

NedS said:

Replying inline in bold for my convenience

jadex said:

5. What does constitute savings? Whatever is in all current accounts, savings accounts, e-wallets, NS&I bonds? Or is it reduced by rent, bills, groceries, insurance?
What about business accounts? Are they part of personal capital / savings?

Essentially, everything - balances of all accounts, assets, savings etc. There is no reduction for outgoings. You would declare everything, and a DM will decide what can be disregarded. Business assets essential for the running of the business are disregarded in full.

Also bear in mind that income (inc UC payment) from the previous month doesn't become classed as capital until the end of the following AP, so you can deduct that if you spend it all by then.

Have you checked your entitlement on an independent benefits calculator? I'm not sure you'll be entitled to anything based on what you've said about your circumstances?

Ordinarily would not be entitled to anything due to savings (which are not really a savings...).
However, because it would be a managed transition then there is entitlement to some small help. Quirk in the system, I suppose, as it looks like there is an entitlement to housing element whereas it wasn't any to housing benefit.

Yes, TP will disregard capital being above 16k for the first year. But I was thinking more along the lines of your circumstances - you've described an adult couple working full time self employed with no dependents (since your kids have left home). Normally that would put you well above any thresholds for either tax credits or UC, unless there are other pertinent circumstances?

Also bear in mind that as new UC claimants, you will be exempt from the MIF for the first 12 months, so if your actual earnings are way below the MIF you might still qualify for some benefits during the first year.