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Forum Home  →  Discussion  →  Universal credit administration  →  Thread

Savings and Universal Credit

marh
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Information and support worker - Parkinson's UK, Darlington

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My clients are currently receiving CTC and WTC.  Can anyone clarify that under UC any savings and equity in property they own would be taken into consideration when determining if someone is eligible for UC whereas CTC/WTC takes no account of savings or equity in property?

Thanks

Jon Blackwell
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Programmer - Lisson Grove Benefits Program, Brighton

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marh - 14 May 2013 10:22 AM

My clients are currently receiving CTC and WTC.  Can anyone clarify that under UC any savings and equity in property they own would be taken into consideration when determining if someone is eligible for UC whereas CTC/WTC takes no account of savings or equity in property?

Thanks

Capital will be calculated for UC in a similar way to JSA(IB)/ESA(IR)/IS (so, e.g ,the value of the home they normally live in is disregarded).  New claimants with capital over 16,000 are not entitled to UC.

However, it is likely that claimants currently receiving CTC+WTC whose capital is over the 16,000 limit will qualify for UC transitional protection at the point of switchover (which, on the current timetable, would not be before April 2014 at the earliest).

I don’t think it’s certain yet that transitional protection will apply in these cases - policy may still be being developed - the regulations covering transitional protection won’t actually be needed until after the Pathfinder ends so it’s possible they won’t be available until the autumn.

Gareth Morgan
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CEO, Ferret, Cardiff

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The policy intention is (was?) that TP will apply to the c600k families affected.  The problems from that decision include

a)  TP is cash limited; there will be no increases year on year to meet increasing costs.
b) Changes of circumstance which will end TP may have a much greater effect on these groups of people.

LITRG
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Low Incomes Tax Reform Group

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Gareth Morgan - 14 May 2013 02:35 PM

The policy intention is (was?) that TP will apply to the c600k families affected.  The problems from that decision include

a)  TP is cash limited; there will be no increases year on year to meet increasing costs.
b) Changes of circumstance which will end TP may have a much greater effect on these groups of people.

My understanding is that you only get TP if you are managed migrated across but if you have a change of circs that causes HMRC to end the TC claim and direct you to claim UC then you won’t get TP. Is this intention in addition to that for these 600k families or only for those who are managed migrated across.

Victoria

Gareth Morgan
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CEO, Ferret, Cardiff

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TP will only apply to managed moves generally.

If you are moved onto UC by DWP / HMRC action while your circumstances remain unchanged, TP applies.

If you are moved because of a CoC, or you make a new claim, then tough; you are on calculated UC only.

LITRG
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Low Incomes Tax Reform Group

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Gareth Morgan - 14 May 2013 03:23 PM

TP will only apply to managed moves generally.

If you are moved onto UC by DWP / HMRC action while your circumstances remain unchanged, TP applies.

If you are moved because of a CoC, or you make a new claim, then tough; you are on calculated UC only.

Thanks!

Victoria