Moving from tax credits to UC

help2024

Hi, I’m hoping someone can help me as I’m panicking. I am currently awarded PIP standard rate for daily living and the enhanced rate for mobility. I work 30hrs a week from home due to mobility issues and up until now have been on working tax/child tax credit with the disability element payment. My child is now 18 so my child tax credits will reduce dramatically from the end of This month. I received my migration letter the other day to move to universal credits. I’ve put my information into a benefits calculator and I am getting conflicting information. I think but I am unsure that I will only be entitled to universal credits if I am awarded the LCWRA. Does anyone know if I will be awarded the LCWRA with claiming PIP, will I need to do an assessment as I have already been through the process for tax credits. Feeling really scared and panicky due to losing nearly half my monthly income in a few weeks. It does state about transitional protection but I’m not sure if I will be awarded LCWRA as I am working but only from home. Any help would be much appreciated and thank you for taking the time to read this. 

poppy123456

You will need to make sure you claim UC by the deadline in the letter. There will be Transitional protection in place if you'll be worse off when you apply but if you're not worse off then of course the TP will not be included.

Your PIP award doesn't automatically entitle you to LCWRA and this only applies to those of state pension age and above, if they're claiming either Enhanced daily living PIP or high rate care DLA.

You wouldn't have been through a work capability assessment when claiming Tax credits because this isn't needed for the disabled element.

When you claim UC you will need to make sure you report your health condition. You will then need to provide a fit note within 7 days of that and continue to send them without any gaps until a decision is made on your WCA.

If found to have LCWRA then the element will be included from the 4th month after you reported your health condition.

Please also be aware that if you're entitled to TP when you do claim this will erode over time so if other elements increase or are added then the TP will erode until such a time it erodes completely. This may mean that you may not be any better off if found to have LCWRA.

You can see the descriptors here for LCWRA. https://www.benefitsandwork.co.uk/universal-credit-uc/uc-faq/limited-capability-for-work-related-activity

If your child is remaining in full time non advanced eduction then your tax credits/child element of UC can continue.

When you claim UC if you have no children on your claim then you will not be entitled to the work allowance. If found to have either LCW/LCWRA then the work allowance will apply. Without the work allowance any earnings received each assessment period will reduce your UC by 55%. More details on work allowance here. https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances

help2024

Thank you so much for replying. So my situation will be
no children on the claim
working 30hrs from home
pip enhanced mobility, standard daily care
will I be entitled to LCW if I am working? 

I’m literally going to be losing up to £650 a month. I don’t understand it all and the payments. 

help2024

How can I hand in a fit note to dwp if I’m working? But I’m at a huge advantage of finding and keeping jobs due to my disability. 

poppy123456

You won't automatically be entitled to either LCW or LCWRA because a PIP award doesn't automatically entitle you to either of those. There are some conditions that will automatically entitle you to LCWRA but the following must apply to you.

1. You are terminally ill, i.e. you are suffering from a progressive disease and your death in consequence of that disease can reasonably be expected within 12 months

2. You are receiving treatment for cancer by way of chemotherapy or radiotherapy
For this to apply you must either be actually receiving it, or:
you are likely to receive such treatment within 6 months; or
you are recovering from such treatment;
and the decision maker is satisfied that you should be treated as having limited capability for work-related activity.

If they don't then you will need to go through the work capability assessment first. When you claim and report your health condition you should be referred for the WCA from day 29 of your claim. Once referred you will then receive the UC50 form which you will need to fill in and return with all your extra evidence. You will likely need an assessment (similar to PIP but different criteria) because most people have them.

You won't be any worse off when you do claim UC because of the TP, as advised above. Though you won't be entitled to the work allowance until you're found to have either LCW or LCWRA.

Once you claim UC your first payment will be 1 month and 1 week later. You can request an advance payment when you claim but this does need to be repaid back and your future payments will be reduced to pay it back. UC will then be paid on the same date each month. After you receive your first payment you can request your payments to be made twice a month instead. Doing it this way will mean you'll receive half of your payment twice a month instead of once a month. More details here. https://www.gov.uk/universal-credit/how-youre-paid

It's also worth remembering that even if you didn't receive the migration letter now then your CTC would end on 31st August anyway because your son/daughter is leaving FTE so you would have been worse off anyway.

help2024

Thanks for replying. I’m just not sure how I’m going to manage. I can’t walk further than 50m and everything is a battle but I’m still battling. I would probably be better off leaving my job and getting my council tax and rent paid. I get the transitional protection but this won’t last long. Many thanks for replying though x

poppy123456

Before leaving your job i'd advise you to look at the figures first because managing on just UC alone isn't going to be easy.

For LCWRA if it's the mobilising descriptor that applies to you then please be aware that they also take into consideration your ability to use a self propel wheelchair. It's not just about your ability to walk.

help2024

I would only gain by £75 a month for working a 30hr week to what I would if i left my job. I choose to work as it’s all I’ve got right now but it seems pointless if I am not going to gain. I’m on high doses of morphine and have been for a long time. There doesn’t seem enough support for single disabled people. 

poppy123456

It will be better if you're found to have either LCW or LCWRA because then you'll have the work allowance. As you'll be claiming for help with the rent your WA will be £379/month. This means you can receive that amount of earnings each month before the 55% deductions apply. You will then be owed some money from the start of your claim.

Hannah_Alumni

@help2024 Hello Welcome to the community! I wanted to share Scope's advice pages on Work and Benefits as you may find it useful to read