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Universal Credit - Low payment

Hello all

I’m hoping someone can ease my anxiety.

I am, as of now, a single working parent. I pay approximately £360.00 per month (4 wk month) in nursery fees. That’s based on me working 38 hours per week.

Today I received a payment of £70! Do you think this is all I am entitled to? I read on here about an early payment computer glitch today, I’m hoping that’s a similar issue with mine?

If all I am entitled to, as a single working parent paying approx £360.00 fees, I will have to reconsider my working hours as on an overall month, I’m left with not a lot.

Hoping someone can help? This is all new to me !

Thank you

Replies

  • edited 31 December 2018 at 10:38PM
    calcotticalcotti Forumite
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    edited 31 December 2018 at 10:38PM
    If you log on to your journal you should be able to see how your payment has been calculated. What did you receive in previous months or is this your first month on UC?

    In order for anyone to advise you about your entitlement you will need to provide more information. How many children do you have, do you rent your home and how much do you earn?

    If you were paid early prior to a Christmas you may have had extra earnings taken into account for this assessmentperiod which will result in a lower payment this month. You would then expect Your next payment to be higher.

    I would expect your UC to be made up of a basic allowance (£317.82) plus a childcare amount (£277.08 if you have one child born before 6th April 2017) plus an allowance for rent (if applicable) plus 85% of your confirmed childcare costs. This will give a maximum entitlement. From your earnings there will an amount that is ignored (called a work allowance this is £198 if you are getting help with rent). 63% of the balance of the earnings received during the assessment period will be deducted from your maximum entitlement. This will then be the amount you are paid.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Thanks for reply

    It just says I’ve been paid £73.00, when working out the payment it says I could be entitled to over £509 but for every £1 I earn over £400 UC take 63p out of the ‘entitled to’ money. This month I walked away with £1157 before paying nursery fees. It’s all very confusing as I have never claimed UC before and don’t understand how the payments work.
  • edited 31 December 2018 at 10:51PM
    calcotticalcotti Forumite
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    edited 31 December 2018 at 10:51PM
    Because your work allowance is £409 I infer that you do not rent your home.

    I would expect therefore your UC to be made up as follows
    basic allowance £317.82
    childcare amount £231.67 (if you have one child born after 6th April 2017)
    plus 85% of your confirmed childcare costs.

    I do not understand therefore why the maximum entitlement you quote is only £509. On the figures above it would be £549.49 plus the childcare element.

    It looks likely that no childcare costs have been included. Have you provided evidence of your childcare expenditure to DWP, remember it is paid in arrears based on costs incurred.

    The 63% deduction of the balance of the earnings received during the assessment period less the work allowance is correct. Based on earnings of £1157 that would be a deduction of £471.24. That would result in a payment of £78.25 if no childcare costs have been included - if you spend £360 you would be entitled to get an additional £306 in your UC.

    You need to look at the breakdown to see what has been included.

    You need to make sure that you provide DWP with evidence of your childcare costs as and when you pay them.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • calcotticalcotti Forumite
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    Would add that I don'y have experience of anybody claiming childcare costs on UC. If anybody reading this does have experience it may help OP if they could post about their experience and what needs to be done to make allowable sure childcare costs are paid.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • hucksterhuckster Forumite
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    Childcare costs have to be reported to Universal Credit during the assessment period in which they are paid to the childcare provider.

    A claimant with a full service online claim can do this by logging into their claim, going to report a change in circumstances and reporting the childcare using the option shown. They need to enter the full information requested e.g. Name of childcare provider, providers registration number, date paid, amount paid, childcare dates, name of child and there is an upload option to upload a copy of childcare invoice and proof of payment. If you cannot upload documents, then a visit to the Job Centre will be required to provide the documents, but you still need to report the childcare on your online claim.

    If this is the first childcare, a copy of the invoice must be provided with proof of payment. The invoice must be childcare providers document which includes their full information and includes dates of childcare, name of child they are looking after. The invoice must not just be a handwritten letter without all information. Universal Credit will check that the childcare provider is properly registered to provide childcare. They won't pay childcare if it is provided by people not registered.

    If childcare is not reported to UC within the assessment period they are paid, but at a later date, then it will be necessary for a Decision Maker to decide whether they can be paid. A short delay in reporting is unlikely to be a problem, but if say more than a month delay, then it is possible they would not be paid.

    Once childcare is verified, UC include the childcare that falls within an assessment period. A childcare invoice paid might include childcare dates that are split over say 2 assessment periods.

    Important to note. If you have significant employment earnings and the deduction applied is more than any claim entitlements, you may end up receiving no payment. So for example you might have, standard allowance, plus children, plus childcare = £xxx, but if the deduction for earnings and any other deductions is more than £xxx, it means you will not receive any payment. Many people seem to think that childcare is paid, irrespective of employment income. This is not the case.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • calcotticalcotti Forumite
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    Thanks for posting that huckster. Lots of useful information there.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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