Forum Home» Benefits & Tax Credits

Will this trigger UC switch?

New Post Advanced Search

Will this trigger UC switch?

edited 30 November -1 at 1:00AM in Benefits & Tax Credits
10 replies 852 views
BeclouBeclou Forumite
4 posts
edited 30 November -1 at 1:00AM in Benefits & Tax Credits
My partner and I currently receive WTC and CTC. I return to university (nursing) in September and my partner will be giving up work to continue his studies and to be around for childcare. 2 children under 5. We are in Scotland if that makes any difference. Obviously we wont be claiming out of work benefits. But will we lose our tax credits when we inform them neither of us are working?

Replies

  • Alice_HoltAlice_Holt Forumite
    3.8K posts
    1,000 Posts Fourth Anniversary Name Dropper
    ✭✭✭✭
    I would have thought that the WTC element would be lost, as neither of you will be working the requisite hours.

    I suggest you get a benefit check at your local advice centre.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • BeclouBeclou Forumite
    4 posts
    Yes. I would lose the WTC. But it was the ctc I was worried about. As under current system they dont take student income into account.
  • _shel_shel Forumite
    3.5K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Beclou wrote: »
    Yes. I would lose the WTC. But it was the ctc I was worried about. As under current system they dont take student income into account.

    Yes they do
    Don't Buy The S*n
  • poppy12345poppy12345 Forumite
    9.3K posts
    Fifth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    _shel wrote: »
    Yes they do
    Sorry that's not correct. Student loans are ignored when calculating tax credits. See link. https://www.turn2us.org.uk/Benefit-guides/Student-Support/How-does-student-support-affect-tax-credits
  • calcotticalcotti Forumite
    8K posts
    Tenth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    For the avoidance of doubt - Child Tax Credit entitlement will continue, the amount obviously dependant on your circumstances.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • _shel_shel Forumite
    3.5K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    poppy12345 wrote: »
    Sorry that's not correct. Student loans are ignored when calculating tax credits. See link. https://www.turn2us.org.uk/Benefit-guides/Student-Support/How-does-student-support-affect-tax-credits

    They took my hubbys Masters Loan in to account
    Don't Buy The S*n
  • calcotticalcotti Forumite
    8K posts
    Tenth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    poppy12345 wrote: »
    Sorry that's not correct. Student loans are ignored when calculating tax credits. See link. https://www.turn2us.org.uk/Benefit-guides/Student-Support/How-does-student-support-affect-tax-credits

    The link only identifies certain student income/loans as ignored. My reading is that maintenance loans are generally taken into account and that if a loan is available you are assumed to have one even if you have not applied.

    However for the OP it looks as if a nursing bursary would be ignored - and I think these are still available in Scotland.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • edited 20 May 2019 at 8:58AM
    sleepless_saversleepless_saver Forumite
    2.7K posts
    Part of the Furniture
    ✭✭✭✭
    edited 20 May 2019 at 8:58AM
    "Bursary
    If you are a nursing or midwifery diploma or degree student starting your course in autumn 2018, you can get a non-means-tested nursing and midwifery bursary of £6,578. In the first year, an extra £60 initial expenses allowance is paid. In the fourth year, the bursary is reduced to 75 per cent.
    Grants for living costs
    Available grants for living costs are:

    means-tested dependants' allowance for a spouse, civil partner, partner or dependent child(ren). The allowance is £3,640 for an adult or first child, and £557 for each subsequent child. Note: support for children is still included in nursing and midwifery bursaries, even though it has been abolished for other undergraduates;
    single parents' allowance of £2,303 if you are single, widowed, divorced or separated and bringing up children on your own;
    childcare allowance of up to £2,466 if you pay for registered or formal childcare;
    disabled students' allowance (see Cross reference);
    travel expenses and 'reasonable accommodation costs' for placements."
    Source: CPAG Benefits forS Students in Scotland Handbook. https://www.onlinepublications.cpag.org.uk/
  • sleepless_saversleepless_saver Forumite
    2.7K posts
    Part of the Furniture
    ✭✭✭✭
    My previous post is not relevant and I have edited it.
    What I should have quoted from CPAG guide (which is available in full at the link below) shows that nursing bursary is taken into account in assessing means tested benefits.

    "Grants and loans
    Grants
    A grant is defined as an educational grant or award, bursary, scholarship or allowance, and does not include education maintenance allowance or discretionary fund payments.Footnote In general, grants intended for living costs are taken into account and grants for other costs are disregarded. For the way that discretionary funds are treated, see Cross reference.

    If you are not eligible for a student loan, deduct from your grant:

    £390 for books and equipment;
    £303 for travel.
    An assessed contribution from a partner or parent counts as income, whether or not you receive it. However, for income support (IS) and income-related employment and support allowance (ESA), if you are a disabled student, only include contributions that are actually paid.
    .......

    Nursing and midwifery students' grants
    The following grants are disregarded:

    childcare allowance;
    disabled students' allowance;
    dependants' allowance for a child, and single parents' allowance – for IS, income-based JSA and income-related ESA. However, if you have been getting IS or JSA since before 6 April 2004 and still have amounts for children included, the dependants' allowance for a child and single parents' allowance are taken into account. These allowances are taken into account for HB in all cases.

    The following are taken into account:

    nursing and midwifery bursary;
    single parents' allowance – for HB, and some existing IS and JSA claimants with no CTC award (see above);
    dependants' allowance for an adult;
    dependants' allowance for a child – for HB, and some existing IS and JSA claimants with no CTC award (see above)."

    Source: https://www.onlinepublications.cpag.org.uk/
    CPAG benefits for students in Scotland guide
  • BeclouBeclou Forumite
    4 posts
    Student income definitely doesnt come into account when calculating tax credits. I have phoned them numerous times about this as I have had a year out.
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support