Universal Credit - starting a new job, my benefits depend on what day I am paid?

logh

I start a new job on Monday, so I called Universal Credit to advise them to stop paying me.

The person who I spoke to advised me that I would continue to receive Universal Credit until HMRC advised the DWP that I had received my salary. He implied that the date of my first wage payment would affect how much Universal Credit I got paid.

Does this mean if I get paid monthly instead of weekly, I would get an extra 3 weeks of Universal Credit payments?

I am rather confused by this situation, and would be grateful for your advice.

logh

Nobody know about this? Seems strange that my payment amount would be influenced by the date of my wage.

kingfisherblue

I've no idea, but it would seem sensible to me if you hang on to any UC payments, in case they claw them back at a later date.

NYM

UC is paid in arrears so presumably any deduction from it due to earnings will be calculated accordingly.

...at least, that's how I understand it.
Turn to Us - Universal Credit

Mersey_2

Yes, that sounds right, but for the wrong reason.


UC payments are paid monthly in arrears and they are based on monthly assessment periods.


The period relates to the date when you first claimed UC. Most employers should inform HMRC in 'real time' of employee earnings and self employed UC claimants have to inform UC by telephone each month of their earnings within 7 days of that assessment period in order to be paid any UC.

logh

Here is my exact situation. My initial claim was on the 2nd of the month, and my UC has been paid every month on the 8th of the month.

I am paid weekly in my new job, with a 1 week delay. I started working on Monday 30th November, and my first weekly wage will be paid on Friday the 11th of December.

When I get paid my Universal Credit on December 8th, will any deduction be made from my UC payment due to my new job?

Mersey_2

Yes, that's normal (your monthly UC assessment period will be 2nd-1st of the next month and payment sent within 7 days after that).


If you're paid on the 11th, that will fall in the following (02.12.15-01.01.16 period) and so affect your Jan 2016 payment.


Also, it isn't an either/or scenario.


You will still receive a UC payment in January, it'll just be reduced accordingly. Eg say you're a single man, you're allowed £111 work allowance pcm that doesn't affect your UC payments. Then, for every £1 you earn over this £111, 65p is taken off your net pay and reduces your next UC payment by 65%.


You should also receive a breakdown in the post explaining any calculation.

missapril75

Mersey wrote: »

You will still receive a UC payment in January, it'll just be reduced accordingly. Eg say you're a single man, you're allowed £111 work allowance pcm that doesn't affect your UC payments. Then, for every £1 you earn over this £111, 65p is taken off your net pay and reduces your next UC payment by 65%.

This is beginning to sound like it has similarities to the old Supplementary Benefit system.

Although SupBen was paid in advance it wasn't cut off when starting work (it could be extended until wages were due) and if wages were "low enough" the benefit could still be paid.

Give it another couple of years and we might be back to National Assistance. :rotfl:

logh

Thank you for the clear explanations, and the good info from everybody. I think I understand it now