Tax credits and universal credit — Scope | Disability forum
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Tax credits and universal credit

debbiedo49 Member Posts: 2,904 Disability Gamechanger
edited November 2018 in Universal Credit (UC)
Don't know if this has been covered already but here goes. I'm currently on jsa and child tax credits and I do part time work under 12 hours. Anyway my area has gone live with universal credit and my jcp advisor is trying to get to grips with my circumstances really universal credit. She says I will only be required to move if I am better off? First off I find that hard to believe that I have a choice. Secondly she say there won't be any tax credits it will all be universal credit and that the rules for working no longer apply. For example to get wtc you must work 16 hours. So my question is - how will they work out your former tax credits and working criteria? Thanks for reading.


  • poppy123456
    poppy123456 Member Posts: 31,107 Disability Gamechanger

    Firstly, you will eventually have to move across to UC with managed migration you'll have no choice in that but this will be at least 2019 possibly much later than that for a lot of people. Unless a change of circumstances prompts a move in the meantime.

    When you do move across then all your other means tested benefits will move as well, with the exception of council tax reduction because it's not part of UC.

    There's different elements to UC and for child tax credits it becomes the child element. Housing benefit becomes housing element.

    JSA becomes the standard allowance of £317 per month but because you only work 12 hours per week under JSA with UC you'll need to look for work for the remainder of the time... 37 hours i believe. If you're unable to look for work for those amount of hours then you'll need to claim the LCW with a fit/sick note from your GP. Very much like ESA only a different name and paid monthly rather than fortnightly. Evidence will be needed to support a claim, like with ESA and a face to face assessment is most likely as most people have them. If the decision is LCWRA then you'll be paid the extra money per month for this and your claimant commitments will be turned off so you won't have to look for work on top of your existing 12 hours. If it's LCW only then there's no extra money.

    Claiming PIP/DLA has no affect on a UC LCW claim.

    Lots of information all about UC and how it works in this link but for now you don't need to worry.

  • Glen76
    Glen76 Member Posts: 13 Listener
    as you work 12 hours you won't be able to claim working tax credits however if you were to work an additional 4 hours so you are working 16 hours then you can claim working tax credits and will not need to move over as you are already in receipt of child tax credits. If you want to claim tax elements (which is working tax and child tax credits) of universal credit you can on 12 hours of working. UC calculate deductions from your allowance of what you earn. 
    I would do a benefits calculator and if you liaise with citizens advice then they will assist, I would imagine if you are not getting working tax credits you would financially be better off on UC. The other thing that you want to bear in mind is that if you move over to universal credit your payment will be monthly and it is likely that it will take 6-7 weeks until the first payment, which takes you up to Christmas obviously a bad time to change. 
    For the calculation of working tax credits for universal credit you do not need to give them a predication i.e. I will earn £6000 this year, as HMRC update universal credit each month on what you earned, in theory this resolves the over payments when people change jobs as the monthly calculation changes if your income does
    Hope that all makes sense
  • debbiedo49
    debbiedo49 Member Posts: 2,904 Disability Gamechanger
    Thanks that’s made things a lot clearer guys. I actually work 7 and half hours p w and (I was hoping to get more hours up to 16 so that I could apply for wtc but I’m finding jobs offering 15 hours not 16 p s which is bizarre. I’m not the only one either it seems there’s a gap between available jobs at 16 hours for some reason.) So I was thinking in the future is it still worth folllowing that plan to wtc or will it be gone soon? 
  • poppy123456
    poppy123456 Member Posts: 31,107 Disability Gamechanger
    Have you thought about 2 jobs to get your hours to 16 per week for the WTC? As you have a PIP award you'll be entitled to the disabled element on top.

    Working tax credits added to your child tax credits claim will still be available up until you're asked to move to UC, which as i advised could be 2019 or much later. As you're already claiming child tax credits then adding WTC to your claim isn't classed as a change of circumstances.

    Any housing benefit and CTR you claim could be affected and changes will of course need to be reported. Good luck with finding those extra hours!
  • debbiedo49
    debbiedo49 Member Posts: 2,904 Disability Gamechanger


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