How do I pay back the advance payment from UC if I get a job?

Got2Save

I might have a job (just waiting to hear) and if I get it, what happens with the advance payment I got? I applied for an advance payment of £158 which is supposed to be paid off monthly via reduction in Universal Credit per month. However, what happens with the advance payment if I get the job? Does it get written off or do I need to pay it back through my job?

marliepanda

It won't be written off...
They'll balance the 'debt' against any UC you are entitled to, then you'll have to actively pay it back yourself, they won't just deduct it from your wages.

teddysmum

They won't write it off, as you should have more income from which to pay.

Mersey_2

An advance payment of UC is just that - it's giving you your UC entitlement earlier than the usual UC monthly payment date.


It's not a DWP loan.


Also, UC payments are based on any employment income received in the previous monthly UC reporting period.


I haven't known any UC Claimants owing a liability in the way your post suggests. (Unless they received an overpayment from the DWP or an emergency loan).

dktreesea

It's not written off but there doesn't seem to be a mechanism whereby you can pay it out of your wages. They are restricted to 40% of the UC you would be entitled to in clawing back the advance payment, but it seems to be they can only claw it back if you have any UC entitlement. So say you were getting £250 a month UC, and in this month you work enough so you only get a £50 UC top up. They can claw all of this back, i.e. less than 40% of the UC entitlement.


I've seen this particular problem in action and think it a ridiculous burden on the taxpayer that a person can work but not pay back what they owe DWP out of their earnings. Imagine if HMRC worked like that? ! It only seems to get paid back in months that give rise to a UC payment.

teddysmum

dktreesea wrote: »

It's not written off but there doesn't seem to be a mechanism whereby you can pay it out of your wages. They are restricted to 40% of the UC you would be entitled to in clawing back the advance payment, but it seems to be they can only claw it back if you have any UC entitlement. So say you were getting £250 a month UC, and in this month you work enough so you only get a £50 UC top up. They can claw all of this back, i.e. less than 40% of the UC entitlement.


I've seen this particular problem in action and think it a ridiculous burden on the taxpayer that a person can work but not pay back what they owe DWP out of their earnings. Imagine if HMRC worked like that? ! It only seems to get paid back in months that give rise to a UC payment.

That's very odd, as if you need help you have to pay back, but if you don't (could have a very good salary) you don't need to pay back.

dktreesea

teddysmum wrote: »

That's very odd, as if you need help you have to pay back, but if you don't (could have a very good salary) you don't need to pay back.

I asked this very question. Apparently the DWP have a debt management team which write out to you to make arrangements to pay back the advance/loan/overpayment. They're as bad as the council for getting back overpayments of housing benefit.


I say "apparently" because nine months later no such letter had been forthcoming. They're utterly hopeless. The person in question (one of my family) eventually got a number for them and rang them to make a payment over the phone. They told her they didn't have the facility to take an over the phone payment and just to wait until they get a letter out to her.


Thank goodness HMRC are a bit more together. Can you imagine, ringing their Debt Management Office so you can pay your outstanding NICS, and being told they can't take a payment and could you wait a few months while they get around to sending you out a letter? No chance!