Working Tax Credits and Savings

Voyager2002

indigogirl wrote: »

But what about this story then?

http://menmedia.co.uk/accringtonobserver/news/s/349002_benefit_fraud_mum_failed_to_declare_savings

The link is to a news story published in December 2003. The rules changed since then.

thor

I think there is going to be a lot of noise coming from Tory voters in a few years time when the Universal Credit begins to replace all benefits. This is because unlike the tax credits, UC will not disregard capital and people with savings beyond a certain level will find that they will either have their payments slashed or stopped altogether. Now given that Ian Duncan Smith has stated that anybody claiming now will not lose out with UC, surely this will prove to be a big lie?

zagfles

thor wrote: »

I think there is going to be a lot of noise coming from Tory voters in a few years time when the Universal Credit begins to replace all benefits. This is because unlike the tax credits, UC will not disregard capital and people with savings beyond a certain level will find that they will either have their payments slashed or stopped altogether. Now given that Ian Duncan Smith has stated that anybody claiming now will not lose out with UC, surely this will prove to be a big lie?

The UC white paper does say: "If the amount of Universal Credit a person is entitled to is less than the amount they were getting under the old system, an additional amount will be paid to ensure that they will be no worse off in cash terms."

It'll be interesting to see how they handle this. One way would be to change the "old system" to look more like the new system before transition, eg introduce captial rules into tax credits now. But if they were going to do this I'd have thought they'd have done it already in the spending review or budget.

The words "cash terms" probably means that eg if someone is getting £3000 in tax credits now but they'd be entitled to nothing under the new system, their claim could never exceed £3000 eg if they have another child they wouldn't get more nor inflation rises. But presumably their claim would still need to be reassessed for income/circumstance changes eg income going up or child too old for CTC. So they'd need to assess people against two systems, the old and the new, until the point where either the old system gives them nothing or the new system gives them more. And for how long - presumably there'll be a time limit on the transitional protection, if they just rely on inflation/circumstance change it'd take decades to get everyone off.

thor

Mark my words, if it does mean those with savings are going to be barred from the UC then there will be a huge uproar from their core support( i.e. those who work but do not earn enough to do without tax credits yet at the same time deplore any claiming JSA or IB)

ruggedtoast

We applied for working tax credits recently and I had to put down my income from savings from last year. However we have recently bought a house and used all of these as a deposit, so we now have no savings just a big mortgage.

There was nowhere on the form to indicate this. They tell you on their website that you have to tell them if your financial circumstances change so they can recalculate the payment, but they dont seem to give you a way to give an up to date snapshot of your finances at application?

zagfles

ruggedtoast wrote: »

We applied for working tax credits recently and I had to put down my income from savings from last year. However we have recently bought a house and used all of these as a deposit, so we now have no savings just a big mortgage.

There was nowhere on the form to indicate this. They tell you on their website that you have to tell them if your financial circumstances change so they can recalculate the payment, but they dont seem to give you a way to give an up to date snapshot of your finances at application?

There isn't anywhere on the form, you need to ring them and give them an estimate of your total income for this year. This includes wages, taxable interest over £300 etc. If it's lower than last year your payments will increase, but be aware that if you actually earn more that the estimate there'll be an overpayment, so tell them again if it changes.

coluk

On the Introduction of the new all in one payment (universal credit) that savings limit is be £16,000. But I believe there is to be a transitional arrangement for existing savings for 6 years. Can anyone clarify this please?

Is the increase in hours for married couples, only for married couples not single parents?

SambaRamba wrote: »

Hello, my partner and I currently get WTC and Child Tax Credit, but are unsure how much we are currently allowed to have in a savings account in order for it not to affect our benefits.

Also, if you are given cash by a member of your family which you use towards your mortgage, does anyone need to be informed?

Thanks very much. Any advice appreciated.