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Practical tips to help you improve your credit rating and avoid expensive high interest loans

What Will Changes To Working Tax Credits Mean For You (2019)?

An image of scrabble tiles spelling tax credits

In late 2018, it was announced by the UK Government that plans were in place to start transferring people from the existing benefits or tax credits onto Universal Credit from July 2019.

In a process known as managed migration, it was announced by the Secretary of State has announced that this process will begin as a pilot scheme for approximately 10,000 people initially.


What is Universal Credit?An image of a financial word cloud

Universal Credit is a payment to help with your living costs. You may be eligible if you’re on a low income or out of work.

Universal Credit will replace the following benefits:

If you currently receive any of these benefits, you cannot claim Universal Credit at the same time.

Universal Credit is being introduced in stages across the UK. You do not need to do anything until you hear from the Department for Work and Pensions (DWP) about moving to Universal Credit, unless you have a change in circumstances.

This change has not been greeted with universal joy. For more on why this may be, please check out this BBC article titled – ‘What is universal credit – and what’s the problem?


What does this mean for my income?An image of a financial chart

The government stated that by 2018 – 2019 eight out of ten households will actually be better off thanks to the introduction of the national living wage and the increase in personal tax allowance to £12,500. There will also be an extension to childcare subsidies.

What this means for each individual family is unclear but there is no need to believe your income will reduce dramatically.


What should I do next?An image of a confused man

If you are not currently receiving tax credits and you believe you might be eligible in full or in part it would be a good idea to follow the advice on the Gov.uk website.

If you are currently claiming tax credits you should be sent a renewal pack. Usually, your credits will automatically renew but it is extremely important that you read the information enclosed very carefully because if you fail to advise the Tax Credit Office of changes to your income you might find yourself having to pay the money back if you have been overpaid.

Changes you will need to inform the tax office about are detailed here.


One Option

If you are worried about your short term financial situation and are struggling to make ends meet, getting a loan may be a suitable option?

Even if you have a bad credit history our lenders can help as they specialise in poor credit loans. We offer some of the best loan rates available and all you need to do is fill in a quick and simple online form, and you’ll then find out all the loans you qualify for.


Warning: Taking on additional debt can cause you serious money problems.

For help, go to moneyadviceservice.org.uk. Please only consider taking on additional borrowing if you are sure that you will have a way of paying this back. Please see our Responsible Lending Policy.

Clare McDonald
Clare McDonald
As a mother of two, Clare knows the importance of being careful with money, so writes posts from personal experience.Clare also loves to find great deals, so shares her finding here.

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