Children allowance

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Peter99
Peter99 Online Community Member Posts: 65 Connected
edited September 2020 in Universal Credit (UC)
I always wondering why DWP always failed to notify the claimants and to give them the choice whether or not they want to submit their claim for UC. I know a lot of people who would not have submitted their UC claim if they were aware what await them when Child Tax Credits are moved to UC. Are DWP allowed to keep people in the dark ?

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  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited September 2020
    HI,

    Up until a couple of months ago there was no warning online when you submited a claim for UC.

    Thankfully, that has changed now and you do get a warning before submitting the claim and it tells you that if the claim is submitted your tax credits will end and you will not be able to reclaim tax credits.

    There's also a warning on the automated message when ringing HMRC, i know this because i rang them this morning regarding my tax credits claim.

    Whether the claimant wishes to continue with the UC claim after this warning is entirely their decision.
  • Peter99
    Peter99 Online Community Member Posts: 65 Connected
    @poppy123456
    Thanks for that. 
    Most people who made a claim for UC last year didn't have that opportunity of this warning. Do they have a case against the DWP?
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Unfortunately not because once a claim for UC has been made then you can never go back to tax credits. Although not everyone is worse off claiming UC, some are better off than when they were claiming tax credits.
  • Peter99
    Peter99 Online Community Member Posts: 65 Connected
    edited September 2020
    @poppy123456
    Hi,
    The problem is when you are no longer eligible for UC because you earn more or have more savings, you lose your Children allowance but whereas you don't lose it under HMRC. But DWP don't warn you of this when people applied for UC. That is the injustice. There should be a way of remedy for these people if they want to end their claim for UC.
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Children allowance? I'm assuming you mean the child element of UC?

    I completely agree with you that before they added this warning there were a lot of people that claimed UC during lockdown and then had their tax credits terminated because of this. Thankfully, that's now recified with the warning.

    Although paying off debt when claiming UC is not classed as deprivation of capital, which is a very good thing because with other certain legacy benefits it is classed as deprivation of capital.
  • Peter99
    Peter99 Online Community Member Posts: 65 Connected
    @poppy123456

    Thank you for the explanation 
  • janer1967
    janer1967 Online Community Member Posts: 21,922 Championing
    I must agree to an extent here when I applied for UC credit a couple of years ago my child tax credit ended immediately yet I didnt get paid any UC for a period of time as I had my final wages from work in the first assessment period.

    I am aware it will have all worked itself out in the end but it was a surprise to me
  • Peter99
    Peter99 Online Community Member Posts: 65 Connected
    @janer1967
    The additional injustice will be when you stop claiming UC for whatever reasons,  you will also lose your child Tax credit, unlike when it was administered by HMRC. 
  • janer1967
    janer1967 Online Community Member Posts: 21,922 Championing
    @Peter99 Unfortunately or fortunately for me that wont apply I am doomed to be on UC now till I reach pension age as I can no longer work and also my son will already be an adult then too
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited September 2020
    Peter99 said:
    @janer1967
    The additional injustice will be when you stop claiming UC for whatever reasons,  you will also lose your child Tax credit, unlike when it was administered by HMRC. 

    The only time UC will end will be if the claimants earnings are too much, which was exactly the same as tax credits. Unless of course they have savings in excess of £16,000. Or they decide to end their claim, which will be entirely their decision and not DWPs to stop the claim.
  • Peter99
    Peter99 Online Community Member Posts: 65 Connected
    edited September 2020
    @poppy123456
    That is exactly my point. The Government moved your Tax Credits, without proper notification and without your consent, from more secured HMRC to the punitive UC rules. DWP then blame you for putting your children in poverty, when your UC ends for whatever reasons. I hear there is a case going on at the Tribunal in regarding of this injustice and it will be interesting to know the outcome. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    The Government didn't make anyone claim because you don't automatically move across to UC. A person has to make the claim theirself. Although i do agree that there should have been a warning from the start that a claim for UC would end any tax credits they may have been claiming.

    UC works well for some and not for others. Some are better off, some are worse off.

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