Home Sports Martin Lewis’ MSE urges 1,000s of parents to make easy check ahead of deadline to see if they could be £1000s better off

Martin Lewis’ MSE urges 1,000s of parents to make easy check ahead of deadline to see if they could be £1000s better off

0
Martin Lewis’ MSE urges 1,000s of parents to make easy check ahead of deadline to see if they could be £1000s better off

[ad_1]

MARTIN Lewis’ MoneySavingExpert has urged thousands of parents to make an easy check ahead of an upcoming deadline.

The consumer site is warning Brits that they could be £1,000s a year better off by swapping from tax credits to Universal Credit.

Martin Lewis' MSE has urged thousands of parents to make an easy check ahead of an upcoming deadline

1

Martin Lewis’ MSE has urged thousands of parents to make an easy check ahead of an upcoming deadlineCredit: ITV

It comes as households have until July 31 to check the information in their tax credits renewal pack is correct and respond to HMRC.

More than 500,000 people claim tax credits and will need to reply to HMRC by the deadline to confirm them for the 2023/24 tax year.

Writing in this week’s MoneySavingExpert (MSE) newsletter the team said: “If you get Tax Credits, check out Tax Credits renewal help, as getting it wrong can be a nightmare.

“Should you shift from Tax Credits to Universal Credit? Parents with higher childcare costs are among those likely better off on Universal Credit.”

Martin Lewis’ MSE warns anyone with a credit card debt to get ‘key weapon’ NOW
My family will save £900 a year on essential bill thanks to Martin Lewis' tip

The Department for Work and Pensions (DWP) will start moving those on tax credits to Universal Credit across the whole of the UK from September.

Around 700,000 individuals will be better off following a move from the legacy benefits to Universal Credit, while another 50,000 will see no change.

It’s important to bear in mind though that 300,000 could be worse off, and should not move until they absolutely have to as they could end up with less money.

It’s expected that all tax credit claimants will move over to Universal Credit by the end of 2024 when the legacy benefit will be scrapped for good.

You can actually choose to move over to Universal Credit from tax credits at any time – but it’s best to check before doing so as you might not be better off.

Those with higher childcare costs are expected to be among those better off as the maximum amount of help available on Universal Credit is rising by £1,000s per year, according to MSE.

This is due to the amount of cash parents can claim a month going up last week from £646 to £951 for one child, and from £1,108 to £1,630 for two – an increase of £522 per month.

You should consider carefully what moving over means for your money, as you can’t move back once you’re on Universal Credit.

How can I check if I’ll be better off?

MSE recommends using an online benefits calculator can help you compare and are free and easy to use.

It said: “Our calculator gives you an indication of how much Universal Credit you’re likely to get, plus will give details of other benefits you might qualify for.

“Importantly, it’ll also tell you whether you’re likely to receive more or less if you switch over from your current benefits to Universal Credit – look out for the little flag on your results page.”

The easy check takes just 10 minutes.

You can also use free calculators from charities such as Turn2Us and EntitledTo, and it’s also worth asking them for advice.

If you do find you’re better off on Universal Credit you can start making a claim straight away.

But, there’s still things to be aware of as moving to Universal Credit can affect other benefits you get, so check this carefully too.

Also, calculators can’t confirm for sure exactly what you’ll get.

MSE warned: “It’s very important to understand if you apply for Universal Credit while claiming a legacy benefit, you can’t switch back – so if you end up getting less (or nothing), you’re stuck with it.

“However, if you wait to be moved over by the Government you’ll get ‘transitional protection’, which tops up your benefit payment so you don’t lose out.

“So take your time to get it right. As it’s such a big decision, always talk to a benefits expert before making the switch.”

What is Universal Credit?

Universal Credit is a welfare scheme that was designed to combine a number of old “legacy benefits” into a single monthly payment.

Whether you are eligible will depend on your individual circumstances.

You may be eligible if you meet all of the following criteria:

  • You’re on a low income or out of work
  • You’re 18 or over (there are some exceptions if you’re 16 to 17)
  • You’re under State Pension age (or your partner is)
  • You and your partner have £16,000 or less in savings between you
  • You live in the UK

How much is Universal Credit?

Universal Credit payments are made up of a standard allowance and then various additional payments that depend on your circumstances.

This is how much you will get as your standard allowance each month:

  • Single, under 25 – £292.11
  • Single, 25 or over – £368.74
  • Couple, joint claimants both under 25  –  £458.51 (for both)
  • Couple, joint claimants, one or both 25 or over – £578.82 (for both)

You may also get additional payments depending on your circumstances.

You may be able to get a top-up if you have children:

  • For those with a first child born before April 6, 2017, the extra amount is £315
  • For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is £269.58
  • For those with a disabled child, the lower rate additional payment is £146.31 and the higher rate is £456.89

If you have a disability you could get an extra amount depending on your circumstances:

  • For those deemed to have limited capability for work, the extra amount is £146.31 
  • For those deemed to have limited capability for work or work-related activity, the extra amount is £390.06

Universal Credit claimants can get an additional amount if they’re caring for a severely disabled person for at least 35 hours a week.

The amount you get is £185.86.

Moment hotel staff get revenge on sunbed hoggers as worker snatches towels
How to get rid of flies with clever 89p hack using common kitchen items

You can also get an increased work allowance:

  • The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is £631
  • The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is £379

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.



[ad_2]

LEAVE A REPLY

Please enter your comment!
Please enter your name here