Universal Credit - Could I really be entitled to it?

Moos_Mummy

Hiya




I have a query about Universal Credit which is fully up and running in my area. Please no judging, I'm just looking for some info please.

My partner and I have never claimed for benefits before as we have never been entitled to due to our salary. The only benefit we receive is the standard child benefit for 2 children.

It was mentioned to me to use the calculators such as entitledto and turn2us and both are saying that we are entitled to ‘XXX’ amount of UC each month (also shows the amount for the current benefit system claim as £0, we aren’t entitled). We have never claimed housing benefit, working tax credits or child tax credits.

I’m just not sure if this is correct. Our joint take home pay each month is approx. £3000 of which £1250 (2 bedroom) is for rent, £500 in childcare expenses, £136 council tax and then all of our other utility bills (Gas/Electricity/Water/Household food etc) on top of that. My partner works 35 hours a week and I work part time 17.5 hours a week.

Does this sound right to you? I understand that UC has been rolled out to help families who work with childcare/housing costs etc.

I keep hearing of how people have lost out on benefits since the system came in to place and that it’s rubbish etc. so can't see how we would be better off and others not if that makes sense.

We have made a claim and are awaiting our interview at the Job Centre but I just wondered if anyone had any information/advice/similar situations? Still have a feeling that we are going to turn up and they are going to say, no you are not entitled to a penny. To add, I have added all salaries, working hours, childcare payments and housing costs correctly on the calculators.


Many thanks, MM

sheramber

What are your gross salaries before any deductions?

Moos_Mummy

They are: £26,500 & £17,000




Total: £43,500

calcotti

sheramber wrote: »

What are your gross salaries before any deductions?

Gross salary is not relevant for calculation of UC. Net income is used.

In answer to OP some people are better off on Uc, some are worse off. Groups who are most often worse of appear to be the ill and disabled if they live alone and single parents.

In doing the calculation, if you are renting privately, have you checked the Local Housing Allowance for your area https://lha-direct.voa.gov.uk/search.aspx. This will cap the maximum help you can get with the rent which may be less than what you pay.

If all the rent is allowable the calculation would (I think) look like this

Joint claimants either aged 25 or over: £498.89
Eldest child £277.08
Second child £231,67
Housing costs £1,250
Childcare £500 x 85% = £425

Maximum UC payable £2,682.64

Earnings £3000
Work Allowance £198
Earnings used £2802
Earnings deduction (63%) £1765.26

UC payable = £2,682.64-£1765.26 = £917.38/month

Slightly surprised if no Tax Credit entitlement previously but I'm not going to try and work it out as it's academic anyway.

Moos_Mummy

Thank you! Yes I checked and for our area the cap was approx. £850. the LHA is Two Bedrooms Rate:£198.40 per week
I'm not really too sure what this means though, assuming that we may get help on the remaining rent we pay above that? We do privately rent.


Thank you for the breakdown of calculations you have done above, the online calculator gave me an amount of approx half of that amount you have given, but anything to us would be a bonus and a lot of help.

Thanks

calcotti

Moos_Mummy wrote: »

Thank you! Yes I checked and for our area the cap was approx. £850. I'm not really too sure what this means though, assuming that we may get help on the remaining rent we pay above that? We do privately rent.
Thanks

The Local Housing Allowance sets the maximum rent you can get help with. Anything above that has to be covered by you. Unfortunately government has kept LHA low while rents have continued to rise so there is a significant gap between LHA and rent in most areas. Using rent costs of £850 would amend the calculation to:

Joint claimants either aged 25 or over: £498.89
Eldest child £277.08
Second child £231,67
Housing costs £850
Childcare £500 x 85% = £425

Maximum UC payable £2,282.64

Earnings £3000
Work Allowance £198
Earnings used £2802
Earnings deduction (63%) £1765.26

UC payable = £2,282.64-£1765.26 = £517.38/month

Moos_Mummy

Thank you so much for breaking down the workings out, that looks similar to what it said on the system. I just find it unreal that we may finally get some help with cost of living still but I will find out next week for sure after our interview. It may look like we have a fair amount of money each month to some but living in the London area with the extortionate rental costs/childcare costs and travel etc it leaves us with not that much surplus income each month as a family of 4 so any little help towards living costs we are hugely grateful for.


Thanks again for your help xxx

rjw273

UC seems to reward working families the most. Probably the best thing to do is just apply for it and see what you get. If you weren't getting anything before then there's nothing to lose!

UC isn't half as bad as the press make out. I'm not saying it doesn't have its faults but the media only show us the most sensational stories for click bait.

poppy12345

rjw273 wrote: »

UC isn't half as bad as the press make out. I'm not saying it doesn't have its faults but the media only show us the most sensational stories for click bait.

Unless of course you're disabled and not fit for work... or maybe even a student that claims PIP, still in full time non advanced education and the parents can't claim tax credits because the student is 19 years old...

rjw273

poppy12345 wrote: »

Unless of course you're disabled and not fit for work... or maybe even a student that claims PIP, still in full time non advanced education and the parents can't claim tax credits because the student is 19 years old...

I'm fully aware there are winners and losers with UC and there have been problems with implementation for some claimants. However, the OP seemed unsure about UC and taking into account their circumstances, UC will probably be very good for them. I was just giving my opinion and trying to help.