Joint WTC - move to ESA

JonnycJonny

What would happen if I were to move on to ESA after being working 16 hours a week self employed ? I am very unwell. My wife and I have WTC and Child Tax credit. Will we be automatically moved onto UC or can we continue to receive WTC for up to 28 weeks if my wife is still working 16 hours ? I get the SDP.

I know this is a little complex but can anyone help. 

calcotti

You can claim new style ESA if your NI record is complete for 2019-29 and 2020-21.

You can be treated as still working your normal hours for 28 weeks and continue to receive WTC. After that 28 weeks is up, if you are not working, your wife will need to be doing the required numbers of hours for your situation if you are to continue to receive WTC. If you are treated as incapacitated that would be 16 hours. If the WTC were to stop CTC would continue anyway because there are no working requirements for CTC.

Given that you currently get the disabled worker element in your WTC I would expect you to be better off remaining on WTC for the next 28 weeks (but it will depend on your circumstances). Beyond that if you were to reduce to CTC only it may be better to switch to UC. However there is no way to compare other than by doing calculations.

Nobody is automatically moved to UC. A UC award can only begin if the claimant applies for UC. If you were to apply for UC your Tax Credits would immediately end. Therefore you should not apply for UC unless you have checked whether or not you are better off being on UC or Tax Credits. Either use a benefits calculator or contact an advice agency.

(However, sometime before Spring 2025 you will be contacted and be told that your Tax Credits will end and that if you wish to continue to receive benefit support you should apply for UC.)

if you are very unwell you may also want to explore PIP.
https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/ . Or are you already getting that?

poppy123456

I believe the severe disability element of WTC will only continue after 28 weeks if you're claiming either Enhanced daily living PIP or High rate care DLA. Not sure on the disability element (I always find tax credits confusing)

https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-disability/#disability element

calcotti

OP could still get the severe disability element, if applicable, even if not working himself. 

The disability element, if he is getting it, however would stop after 28 weeks because that is linked to him working.

JonnycJonny

I get Enhanced PIP - hence the SDP.

Things aren't looking good and ESA seems to be the way forward to enable us to make ends meet - hope to return to work again at some stage. 

Thank you both for your replies - helpful.