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TC pension age claimants
Firstly, massive thanks to Housing Systems/UC Notes for the presentation on this subject at the recent NAWRA conference. I was away for the actual day so have only just caught up with the recording of the session.
Now…...
We have heard nothing from our DWP liaison people about this. Nothing.
Has anyone seen any DWP publicity about this, or are people going to start getting letters (from July onwards) with no warning or explanation?
Has anyone seen the wording of the ‘Tax Credit Closure Notice’ that will be sent out?
There are complications to many of the potential claims (timing of claim, ensuring TCs are accurate and up to date, mixed age couples, transitional protection….), but it looks as if the last person who will be aware of this will be the poor old claimant.
I can’t find a single thing on the subject under a DWP heading.
Are they hoping that as it’s ‘only’ about 28,000 claimants, it will all be OK?
We’ve received (via our Charity Director) an information pack for third parties helping TC claimants who are migrating but it says it’s not for sharing publicly, but happy to ping you a copy if you let me know your email Andrew.
Clara our benefits specialist has had a few meetings with DWP to understand what is going on and we’re currently drafting some content for our website.
There is also this on gov.uk Move to Universal Credit if you get a Migration Notice letter which does cover tax credits as well as other benefits.
We’ve also already had some enquiries from our local advisers about clients so I think there is some awareness. Still not seen any of the notices etc but they won’t start getting sent until next month i.e. next week.
And yes, the Housing Systems session for NAWRA was extremely helpful.
Any chance of a copy of the pack, Paul?
Any chance of a copy of the pack, Paul?
Of course Gareth, email me.
Afternoon
I saw a cl yesterday with I think this exact issue and unsure what to advise. Cl is single and 77 YO and is in receipt of SRP, private and occupation pensions totalling £17600 p.a.
Cl is responsible for an 8 YO child and is in receipt of full CTC of circ £4000 p.a. They have no rent or CT liability.
They have received a letter from HMRC stating that by the end of 2024 they will be asked to apply for UC as their TCs will be finishing
My understanding is that they would not be eligible to claim UC, being single and of retirement age and because of the level of their pension income, they would not be eligible to receive PCG. Does TP extend to PCG or is it just for UC i.e. if their TCs award is closed will they lose out on the £4000 p.a. currently being received via CTCs?
Many thanks for any thoughts on this
Afternoon
I saw a cl yesterday with I think this exact issue and unsure what to advise. Cl is single and 77 YO and is in receipt of SRP, private and occupation pensions totalling £17600 p.a.
Cl is responsible for an 8 YO child and is in receipt of full CTC of circ £4000 p.a. They have no rent or CT liability.They have received a letter from HMRC stating that by the end of 2024 they will be asked to apply for UC as their TCs will be finishing
My understanding is that they would not be eligible to claim UC, being single and of retirement age and because of the level of their pension income, they would not be eligible to receive PCG. Does TP extend to PCG or is it just for UC i.e. if their TCs award is closed will they lose out on the £4000 p.a. currently being received via CTCs?
Many thanks for any thoughts on this
As your client only receives CTC, she can apply for PC to replace the lost income.
From what you’re saying, that means adding one child element to her Minimum Income Guarantee. Assuming she isn’t entitled to any other elements, I make that her MIG equals £294.94 p/w PGC (£218.15 for her plus £76.79 for the child) or £15,336.88 p/a so on basis she has other income of £17,600, then this means she wouldn’t be entitled at all on the face of it.
But I think the effect of the new para.3 Schedule IIB means your client should be entitled to some TP for the difference between her current income and what she would receive once the CTC award ends -
Transitional additional amount
3. An additional amount of the appropriate minimum guarantee (“the transitional additional amount”) applies in accordance with regulation 6(6)(e) if the weekly amount determined in accordance with paragraph 4 (representative weekly amount of child tax credit), combined with the weekly amount of state pension credit (if any) to which the claimant was entitled on the migration day, is greater than the weekly amount determined in accordance with paragraph 5 (indicative SPC amount).
Which then leads us to para.6(b) of the Schedule (para.5 basically says work out her PC entitlement as above with the child element) which tells us that:
6. The initial amount of the transitional additional amount is—
(b)if the amount of the guarantee credit in the indicative SPC amount is nil—
(i)the sum of the representative weekly amount of child tax credit and the amount, if any, by which the income deducted in the calculation of the indicative SPC amount exceeds the amount of the appropriate minimum guarantee; minus
(ii)the amount of the maximum saving credit, but only if the indicative SPC amount includes a savings credit or would do but for the claimant’s income being such that the condition in section 3(2)(b) of the Act is not met.
As this potentially includes PC Savings Credit entitlement, it’s impossible to work out what that means for your client but I think the most important thing for your client to do when she receives the migration notice is to try to make a PC claim and see what happens. The intention is to ensure people aren’t any worse off so you would hope the TP would make sure this happens.
Sorry, just to add, it’s not “impossible” to work our her Savings Credit entitlement of course, it’s just a very complex calculation but we’re hoping the Entitled To benefit calc will soon be able to help out with making these kind of calculations.
Sorry, just to add, it’s not “impossible” to work our her Savings Credit entitlement of course, it’s just a very complex calculation but we’re hoping the Entitled To benefit calc will soon be able to help out with making these kind of calculations.
Our reckoner (under test) says £103.17 Transitional PCand no Savings Credit
Sorry, just to add, it’s not “impossible” to work our her Savings Credit entitlement of course, it’s just a very complex calculation but we’re hoping the Entitled To benefit calc will soon be able to help out with making these kind of calculations.
Our reckoner (under test) says £103.17 Transitional PCand no Savings Credit
Thanks Gareth.
Many thanks for the responses Paul and Gareth reassuring to know and great to have para to quote on PCG MR as pretty sure they will not apply TP automatically 😊
Many thanks for the responses Paul and Gareth reassuring to know and great to have para to quote on PCG MR as pretty sure they will not apply TP automatically :)
Be useful if you could let us know how they get on Marie, good luck.