Universal Credit family of 3

Johnmork

Hello,

I am currently looking for a new property to rent and working out if I am eligible to get anything from Universal Credit. I went through the calculators and it seems that I can get more than 700 GBP per month, but I doubt that this is true, that is why I want to get some advice from your experience.

My situation:
Currently I am looking for a place to rent in the area of Bow, London, monstly looking for 1 bedroom flat with a reception room, which is around 1250-1500 GBP here per month. But if I will not be eligible for Universal Credit I will think about something that is a bit further from this place for housing prices, I might be better to travel a bit more, pay a bit higher for travelling but cheaper for housing, but still I am considering every option, that is why I am writing here.

We are a family of 3, me, my wife and a child of 1 year old, born on 2017-Dec-15.
My current income – 37000 GBP per annum before taxes, I just changed the job and that is what is on my contract at this moment, I am working full time, 37.5 hours per week, office based job;
My last year income was 8600 GBP;
My wife income – 0, she is looking after our child, she had no income last year as well;
We are currently not getting any benefits, even for child or anything other;

I can not understand this Universal Credit system, it seems that my salary is quite good, but for a family is a bit low, as I can not live with that at all. Can somebody give me an advice, should I try to rent here and go for UC and if I will be eligible for that or should I just stick somewhere a bit further from this place and live without UC. Can somebody do a calculation for me on provided information and tell me how this thing works?

Also a side question. If my bedroom entitlement is 2 bedrooms (housing allowance 311GBP), but if I will rent a 1 bedroom with reception room is the entitled housing allowance money still be for 2 bedrooms or one bedroom?

Thank you very much for your help.

poppy12345

Universal credit is calculated on monthly income, not annual like tax credits were.



A family of 3 would be entitled to 2 bedroom housing allowance rate.

Johnmork

The monthly income is 3083 GBP per month before taxes. I am full time employed.

calcotti

The calculation goes something like this


UC basic amount £498.89
child element £231.67
housing costs £1347.21 (based on £311/week)
MAXIMUM £2078.23


If earnings are say £2375 (gross of £37000 less tax and NI)


Work Allowance £198


Excess earnings £2177


Earnings deduction £1371.51 (63% taper)


UC payable £706.72/month

Johnmork

calcotti wrote: »

The calculation goes something like this


UC basic amount £498.89
child element £231.67
housing costs £1347.21 (based on £311/week)
MAXIMUM £2078.23


If earnings are say £2375 (gross of £37000 less tax and NI)


Work Allowance £198


Excess earnings £2177


Earnings deduction £1371.51 (63% taper)


UC payable £706.72/month

Is this correct? As some people say that it is impossible for me to get this amount and I don't know why.

Also do you think this calculator is really tells close to exact what I should expect getting? As I am really confused at this moment, so many different opinions. Also I have heard that if my income is more than 2400gbp per month I won’t get anything. Is that true as with child benefits it will be this much?

Also another thing – my wife and a child is not currently living with me, she will move here as soon as I find another place. She does not have the NIN, but she ofc will go for that as soon as she will be there. But maybe this will be a problem as we are both not UK passport holders, we are Europeans, but I’ve been living here for few years now and she was not.

calcotti

Child benefit is ignored when calculating UC.

Please have another go with an online calculator and see what answer you get. My calculation is my best stab at it but I cannot offer any guarantees.


I'm not sufficiently familiar with right to reside etc to want to comment on how that may affect you. Moreover with all the politics going on at the moment I would be very reluctant to guess the rules in a few months time if it all goes belly up.

Johnmork

calcotti wrote: »

Child benefit is ignored when calculating UC.


Please have another go with an online calculator and see what answer you get. My calculation is my best stab at it but I cannot offer any guarantees.

I am getting same results as you do, but there is so many different opinions, and I don't want to make a bad decition, because if I won’t get anything I will be screwed on such a high rentals

poppy12345

Johnmork wrote: »

my wife and a child is not currently living with me, she will move here as soon as I find another place. She does not have the NIN, but she ofc will go for that as soon as she will be there. But maybe this will be a problem as we are both not UK passport holders, we are Europeans, but I’ve been living here for few years now and she was not.

Would this cause problems when claiming benefits here? Or have i got this wrong?

calcotti

If you're getting the same results in a calculator I am reassured that my calculation is correct. However whether you will be able to claim with your wife and child I am not sure. i recommend you seek advice from an advice agency such as Citizens Advice - ideally one with an immigration expertise.

Alice_Holt

poppy12345 wrote: »

Would this cause problems when claiming benefits here? Or have i got this wrong?

It is likely this may apply:
https://www.citizensadvice.org.uk/benefits/coming-from-abroad-and-claiming-benefits-the-habitual-residence-test/eea-nationals-and-the-habitual-residence-test/eea-nationals-claiming-benefits-as-a-family-member/

But the Right to reside / habitual residence test is very complicated, and frequently misapplied by the DWP.

As calcotti has suggested the OP should get advice, if UC is necessary to afford the rental costs.

poppy12345

Alice_Holt wrote: »

It is likely this may apply:
https://www.citizensadvice.org.uk/benefits/coming-from-abroad-and-claiming-benefits-the-habitual-residence-test/eea-nationals-and-the-habitual-residence-test/eea-nationals-claiming-benefits-as-a-family-member/

But the Right to reside / habitual residence test is very complicated, and frequently misapplied by the DWP.

As calcotti has suggested the OP should get advice, if UC is necessary to afford the rental costs.

Thanks Alice, that's what i thought.