Tax Credits to UC migration

DanE2010

Hi
My husband and myself are currently on working/child tax credits, we got our migration letter to transfer to UC by 4th September so I'm just online now trying to do this and I'm abit confused by a few things and more than abit anxious so wondering if anyone could help.

My husband is self employed we have his accounts for the prev tax year April to April 23/24 he works over 40 hrs a week.

I worked full time until I had to leave work on grounds of ill health. I claim PIP and I'm a stay at home mum. We have 6 kids altogether, 3 are mine and 3 are his from a previous marriage but they live with us permanently. We get child tax for 4 of them and my youngest 2 were born after 2 child limit.

My youngest child is 3 and half and goes to nursery which we pay £247 a week for and have been getting the childcare element of tax credits.

We get housing benefit to help pay toward our rent to a private landlord.

I understand now I've applied for UC there is a at least 5 week wait. I'm worried about how am I going to pay for everything in the mean time? Especially the childcare and the rent which are direct debits, childcare comes out every Monday. I understand you can ask for an advance but you have to pay it back? I'm confused about this? Why would you have to pay it back? So your not entitled to claim anything in those 5 weeks? Is UC credit backdated?

For example if I was claiming for Tax Credits if it took 5 weeks they would give me an award with my weekly payments and along with that they would add 5 weeks money backdated to account for the 5 weeks I was waiting for the claim, does UC not do this? I don't understand the you have to pay it back part? It says my monthly payment would be reduced to account for the advance you have before the claim?

Second confusing thing is it's saying if I'm not fit for work I need to have a fit note every 7 days and after 4 weeks fill out a form and they will assess whether I'm fit for work? This is all very new to me I'm totally green to this. My ex employer and my self came to agree I was not well enough to work, I have a couple of autoimmune diseases that I'm dealing with and I am under the care of a couple of specialists such as a rheumatology etc so can someone explain to me in simple terms what I need to do, does this mean I have to go to work? Does this mean we won't get any help towards childcare? 

How long is this likely to take? We really do rely on this to get by, we're pretty much going to be on the breadline until we get this properly sorted so I want to get it right the first time and have all the correct info.

We're in Northern Ireland if that makes any difference.
Any help very much appreciated 

poppy12345

Are you claiming New style ESA or contributions based ESA as well as Tax credits?

If not then yes you will need to provide a fit note within 7 days of reporting your health condition. You must continue to provide fit notes the whole time without any gaps until a decision is made on your work capability assessment. Usually a referral will be made around 29 days after providing your first fit note. See link. https://www.gov.uk/government/publications/universal-credit-if-you-have-a-disability-or-health-condition-quick-guide/universal-credit-if-you-have-a-disability-or-health-condition#:~:text=When%20you%20make%20a%20claim,Work%20Capability%20Assessment%20(%20WCA%20)

UC is a monthly benefit, which is paid 1 month in arrears. Your first payment will be 1 month and 6 days after you submit your claim. Unless payment date falls on a weekend or bank holiday and then you'll receive payment on the Friday before. This payment will be for 1 month. Your future payments will be paid on the same date each month. For example, if you submitted your claim today then your assessment periods will be 30th to 29th of every month and payment date would be 5th of every month. 

Yes, you can request and advance payment but this needs to be repaid back and your future UC payments will be reduced. The reason for this is because it's a loan only. 

If you're not currently working then you will not be able to claim for childcare costs until a decision is made on your work capability assessment. If found to have either LCW or LCWRA after the work capability assessment then you can claim for childcare costs. See link.universal-credit-childcare-costs

DanE2010

So there is a gap between when my tax credits ends (final payment today) and when Universal credits start, that gap doesn't get filled by anything, I've got to get a loan or just find the money myself from somewhere? 

The same applies to childcare? I won't be backdated for the weeks I don't get it? 

poppy12345

It's just under 5 weeks for your first payment of UC. No, you will not receive anything in that time, unless you ask for an advance payment. 

Was your tax credits paid weekly or 4 weekly?

I don't know if childcare can be backdated, if you are found to have LCW or LCWRA others may know. Please be aware that it could be several months before a decision is made on your work capability assessment. 

Do any of your children claim a disability benefit such as PIP daily living or DLA mid/high rate care?

DanE2010

My tax credits was paid weekly. My childcare is paid weekly. I don't understand how they expect people to live for 5 weeks with no money from anywhere. So basically they leave you with nothing, your desperate to pay your bills so they then offer you a loan so when you finally do get payment your in debt to them already and your payment is reduced to pay the loan off? Sounds like something a loan shark would do.

We don't have any debt and we pay all of our bills on time, we aren't extravagant spenders we don't go out or drink we literally just look after our kids and home and now we're going to be plunged into debt for simply transferring from one system to another. 

Thanks for your replies I don't mean to rant I'm just under immense pressure and this has really knocked me physically and mentally when already in a bad way with my health this couldn't of come at a worse time.

Edit to add no none of the childcare have any disability benfit. Just me with PIP.

poppy12345

The reason for the gap is because UC is paid 1 month in arrears. I don't think it's anything like a loan shark because there's no interest added to the loan. As for anything else then this isn't what the forum is for and if you have any issues I suggest you contact your local MP.

mandco

Your first payment is roughly 5 weeks after you apply as the payment is around 1 week after the monthly assessment period
You are entitled to money for this 4 week period but it’s paid in arrears and it’s what you’ll receive on your payment date. If you need an advance to help you cover costs like childcare /bills/food during this wait you can apply for an advance. When you select apply for an advance it will tell you how much you can borrow( the max you can apply for but you don’t have to take all of it and it will list the repayment options - you chose which one you want and it’s more like an interest free a loan as it’s repayable over a much longer period up to 2 years rather than being taken back in one go. The repayments come out your monthly uc payment.

 if you pay your rent by direct debit might be worth contacting your landlord to explain and see what your options are if you can’t afford to cover it till you get paid by uc. Any housing benefit you got will be paid for another 2 weeks after you claim but if your rent is due in advance you’ll owe 3 weeks by time your first uc payment comes in and if your rent agreement states you must pay a month in advance you may have to make up the difference out of your own pocket - you may able to clear this with an additional monthly payment on top of your standard rent rather than in 1 go. Uc does cover the housing benefit for those weeks but as you’re now being paid monthly in arrears the amount you get covers the previous months rent - your payment in October covers Septembers rent so once you’ve paid the allowance you’re given your balance is still partially in arrears for the coming month and most landlords require you to pay fully in advance.

I recently migrated and it’s been a nightmare- it seems it’s quite common to have issues with the first payment but I’m still trying to get issues I had with mine sorted and have now gone from to debt free to owing rent, a uc advance and a tax credits overpayment - as apparently tc was paid 1/2 in arrears and 1/2 in advance rather than fully in arrears like uc.

peteuk

mandco said:

I recently migrated and it’s been a nightmare- it seems it’s quite common to have issues with the first payment but I’m still trying to get issues I had with mine sorted and have now gone from to debt free to owing rent, a uc advance and a tax credits overpayment - as apparently tc was paid 1/2 in arrears and 1/2 in advance rather than fully in arrears like uc.

TC was a yearly amount but paid in 13 payments, the yearly sun would have been based on your income declared on renewal.  Normally with TC at the end of the financial year, it would be recalculated and corrected. 

As you have migrated to UC you have received an in year tax end, and so it would have recalculated your earnings to the end date and then recalculated how much you should have been paid for the period of X April until close.  Moving forward your UC will be calculated on your monthly earnings so is a lot less likely to sustain an overpayment unless you dont tell them about a CoC. 

peteuk

tacpot12 said:

Part of the reason that 'they' think that you can cope with this gap is that i) lots of Tories were involved in making the rules and they can't image someone having no savings at all and ii) they wanted Universal Credit to be a monthly benefit because that makes sense to people who work and might need to claim Universal Credit in the future, so they expected/wanted there to be some pain in moving from weekly to monthly benefits. Paying benefits weekly doesn't make sense to Tories who think that everyone is able to manage their money as well as they 

There’s nothing stopping you from getting your UC putting it the bank and then releasing a set amount weekly.  Thus paying you weekly.

If you get the housing element this can be paid direct to your landlord on request. (I believe)

Bottom line is monthly payments suit most people, it’s the way UC is set up, as you've transitioned from TC yes there is going to be a change, but sadly I’m unaware of how you’d change to weekly payments.