Tax Credits and Loss of employment

Anagran · 16 June 2018 at 9:59PM

I was wondering if anyone could advise what is likely to happen in the following situation?

Me and my partner claim some child tax credits which includes a small amount of childcare element.

We both work, Partner FT and me PT 25 hours per week (2 children).
Total earnings approx £30K.

I am losing my job and will likely be out of work for a while as I search for something else.

How will this affect the CTC we receive?

I assume the childcare element will be stopped immediately?

Also is this going to cause us to be move to UC (we are in an area where it is rolled out so certain changes of circumstances will get you switched over?)

I have been on entitledto etc, but find it really difficult to get my head round.

Thanks

Darksparkle · 17 June 2018 at 12:17PM

You'll get a four week run on of the childcare element then entitlement to that will stop. CTC continues but potentially at a revised amount if the income is changed.

Your claim for TC won't end so won't trigger a move to UC.

Ezorqs · 17 June 2018 at 1:39PM

Depending on how long you have worked over the past few years, you might also be able to get "New Style JobSeekers Allowance" formerly "JSA Contributions" this is bog standard £73.10 per week. Doesn't take into account your partner or savings, payable for up to six months I believe. This is not Universal Credits and you should ring up the JSA New Claims line not the Universal Credit line to apply.

Working Tax Credits and Child Tax Credits are different things I might point out. It should go up if your income is reduced. There are additional benefits like Child Benefit that might also be applicable.

Working Tax Credits gets a Four Week Run on, but I'm not aware that Child Tax Credits stops at all.

Anagran · 17 June 2018 at 7:36PM

Thanks for the replies.

I do not get Working TC, just Child TC. Good to know about the 4 week run on.

I was really panicking as I am sure I saw somewhere that becoming unemployed could trigger a move onto UC which would not be good.

So you think I will be able to stay in the old TC system and possibly claim New Style JSA along side this? I will look into that, thanks.

Icequeen99 · 17 June 2018 at 7:48PM

Anagran wrote: »

Thanks for the replies.

I do not get Working TC, just Child TC. Good to know about the 4 week run on.

I was really panicking as I am sure I saw somewhere that becoming unemployed could trigger a move onto UC which would not be good.

So you think I will be able to stay in the old TC system and possibly claim New Style JSA along side this? I will look into that, thanks.

yes, this is possible, but make sure the JC+ don't push you to claim UC in order to get access to the Contribution based JSA. If you are unsure, get help from a local welfare rights organisation.

IQ

Darksparkle · 17 June 2018 at 7:51PM

Anagran wrote: »

Thanks for the replies.

I do not get Working TC, just Child TC. Good to know about the 4 week run on.

I was really panicking as I am sure I saw somewhere that becoming unemployed could trigger a move onto UC which would not be good.

So you think I will be able to stay in the old TC system and possibly claim New Style JSA along side this? I will look into that, thanks.

You do get WTC, it's just that the amounts are reduced to zero due to income. You wouldn't get childcare element if you didn't get wtc elements.

If your tax credit claim ends or you claim a benefit that is being replaced by UC then you'd move to UC.

Ezorqs · 17 June 2018 at 8:00PM

Hi Dark,

Plenty of JSA claimants claim Child Tax Credits and this is often paid throughout the life of the claim, in some cases Child Tax Credits has to be input due to limitations (whether you're actually paid Child Tax Credits or not... damned family premiums).

Contributory Benefits i.e. JSA (Conts) are not being replaced by UC. I suspect they will be eventually, but not yet.

Darksparkle · 17 June 2018 at 8:23PM

Ezorqs wrote: »

Hi Dark,

Plenty of JSA claimants claim Child Tax Credits and this is often paid throughout the life of the claim, in some cases Child Tax Credits has to be input due to limitations (whether you're actually paid Child Tax Credits or not... damned family premiums).

Contributory Benefits i.e. JSA (Conts) are not being replaced by UC. I suspect they will be eventually, but not yet.

I'm well aware that contributions based JSA isn't being replaced by UC. I'm not sure why you are telling me that?

Anagran · 17 June 2018 at 9:26PM

Thanks again everyone,

I did not realised that about Childcare TCS being part of Working Tax Credits, thanks for the info.

In my current situation I might not actually claim JSA anyway. Hopefully it will only be short term that I am out of work.

I think what I really need to know is when I inform CTC/WTC about the change in circumstances of now being out of work, will this force us onto UC?

So if people are saying no to that, then that is good news.

poppy12345 · 17 June 2018 at 11:21PM

Anagran wrote: »

Thanks again everyone,

I did not realised that about Childcare TCS being part of Working Tax Credits, thanks for the info.

In my current situation I might not actually claim JSA anyway. Hopefully it will only be short term that I am out of work.

I think what I really need to know is when I inform CTC/WTC about the change in circumstances of now being out of work, will this force us onto UC?

So if people are saying no to that, then that is good news.

No, not unless you claimed a benefit that is being replaced with UC. If you decided to claim New style contribution based JSA this is not part of UC.

Tax Credits and Loss of employment

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