UC migration letter from Child tax credits.

anotherquestion

Hi there folks,

We have just got the UC migration letter from Child Tax Credits to UC, and would like some advice.
Myself and my partner do have quite a lot of savings due to a frugal standard of living, and at the moment we realise that we won't be entitled to any UC after the one year transitional protection is up.

Even at the moment we feel more inclined NOT to even apply for UC at all within the three months allowed as we feel, it will be a lot of hassle etc going to interviews, getting all bank statements etc.

I understand the initial stage of UC is an online application, but am I right in thinking all the above mentioned points must be adhered to as well.

Many thanks for your advice.

NedS

Yes, if you make a claim for UC then you will need to attend any required appointments at the Jobcentre and provide any evidence requested (including bank statements to verify your capital), and you will have to agree to any commitments as part of your UC claim.

It is your choice whether you wish to claim UC or not. As you say, you would likely be eligible to receive UC for up to 12 months with transitional protection. Only you can decide if you want to claim UC, or not. Currently around 25% of tax credit claimants have chosen not to make a claim for UC so you would not be alone either way.

peteuk

I would apply personally and I will explain why. 

Firstly as you know if you have over £16K as your are transiting you will be given a years protection.   If you have over £6K your UC will be reduced depending on how much you have.  This is calculated at £4.35 for every £250 or part of therein.  Eg £6001 will reduce by £4.35, equally £6245 will only have that initial £4.35 deduction.  £6251 will mean a £8.70 reduction. 

Secondly a UC application will provide you with an in year end to your TC. If you dont apply, your TC will end but you will still have the end of the year TC review, so therefore any change of circumstance betweeen now and April 25 may mean an overpayment of TC even though your haven’t claimed them since X (the end of your 3 months transition) 

Yes you will be expected to attend some appointments however this depends on your circumstances, and I believe it would be foolish to not claim on the perception that you’ll need to attend every week/fornight etc. You wont fully know until youve applied.  

anotherquestion

Thank you for reply, Tax credits are due to end in January 25, at the moment even though I have asked for advice, we are really leaning towards not applying for UC, and willing to take the hit of loosing the transitional protection.

As regards the Tax Credits estimated income for 24-25 it is definitely a few thousand above what income will be for tax year 24-25.

So just wondering, if we don't claim UC and when they come to review the 24-25 award, am I right in thinking that they will calculate the real income we have, but as that would probably be a Tax Credit underpayment for the whole 12 month period (April 24 to April 25) that they would instead only apply any underpayment to the period up to  January 25 when the Tax credits end for us, in other words April 24 to January 25?

Many Thanks.