Tax and Universal Credits – An Update

5th August 2016

The introduction of Universal Credits nationwide has been delayed from the original timetable of all claimants being on Universal Credits by 2017.  The new timetable is such that existing claimants of Tax Credits will be merged onto Universal Credits between July 2019 and March 2022.

 

New single jobseekers are currently being introduced immediately to Universal Credits rather than Tax Credits.  New claimants with families are also now being introduced to the new system and the Government is rolling out Universal Credits to 5 jobcentres per month, increasing to 30 from July 2017 and then 55 per month and subsequently 65 per month.  We are reviewing the local councils information monthly to establish when additional claimants are moved across.

 

Once on Universal Credits, claimants will be subject to restrictions based on capital held, and their income will be subject to an imputed minimum level based on the living wage and this is likely to prevent many from being eligible.  Monthly returns will also be required too, updating the Universal Credits office of income for that month.  Failure to submit these returns will result in payments ceasing.

 

The full release from parliament can be found at http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2016-07-20/HCWS96/ however if you have any queries or would like any further information please contact us on 01769 572404.

If you would like to check whether your area is in a Tax Credit area or a Universal Credit area, you can check by visiting www.universalcreditinfo.net

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