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Retirement due to ill health

saim3281

hi, we have recently had to migrate to UC from tax credits. I now have to take early retirement on medical grounds. I am still in my transition period of 12 months. If my contract has been terminated does my UC end? we were on child tax credit.

Thanks

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poppy123456

The 12 months Transition period you mentioned only applies to those that had more than £16,000 in capital when you migrate from Tax credits.

Your UC will not end if you finish work. Did you report your health condition and provide a fit note when you claimed UC?

saim3281

hi,yes UC are aware of my ill health and I have provided a fit note.

I fall into the category of more than 16,000 capital.

I had been told my UC will end. So I’m confused. I did think the 12 months would be protected

poppy123456

You UC will not end if you stop working. UC is based on earnings received each month. The more earnings the less UC you’re entitled to, the less earnings the more you’re entitled to.

Do also be aware that if your capital drops below £16,000 in those 12 months and then goes back above it your UC will then end.

saim3281

can I ask where you got this information from - I’m not being rude. What you’re saying makes sense. Just wondering as I’ve not had a proper answer from UC

poppy123456

I’ve been advising people with benefits for several years. I’m not surprised you haven’t had answers from UC because they are not benefits advisors. You can see the regulations for TP and the capital disregard here https://data.parliament.uk/DepositedPapers/Files/DEP2023-0791/109._Move_to_UC-transitional_capital_disregard_V2.0.pdf

UC is for those that work and those that don’t work.

saim3281

thank you so much. 🤗

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