Universal Creidt miscalculation?

Zoezo

Hi all,
　
I wonder if someone with a bit more experience/knowledge could help me please? As I don't seem to be getting an answer from DWP.　
I've had to switch to UC following a break up, previously was award Tax Credits as a joint claim (childcare element).　


I've just had my calculation, and they have only awarded circa 35% (£335) of my Childcare cost for the assessment period (£621 (that not inlcuding £243 paid in vouchers)　


I had a one-off bonus that month meaning I took home £1,300 - I have no idea what the cap on earnings is to affect childcare cost element (and they haven't answered me!)　


My standard take home is £1,030　
Now single parent to two (6 and 2 year old)　
No surprise I am worse off under UC scheme　


TIA

calcotti

UC is worked out as a maximum entitlement from which deductions are made. The deduction is applied to the whole award not separate bits of it. If you have had a bonus payment this will be taken into account and 63% of it applied as a deduction to work out the payment due. You shouldn't think of this as applied to individual elements of your UC award. Next month when your earnings are 'normal' you will get a higher UC payment.


If you saying that in the calculation the childcare costs are only showing as 35% of what you have confirmed as paid in the period that may be wrong.

Zoezo

Thank you, I thought that may be the case - I will have to contact them again to find out about the childcare %

Zoezo

So UC is calculated:　
　
e.g £1,000 take home - £409 'working allowance' = £591
£591 - 63p per £1 (£372.33) 'A'　


'Award' + child allowance + childcare (up to 85%) - A (£372.22) = end award figure

calcotti

Zoezo wrote: »

So UC is calculated:　
　
e.g £1,000 take home - £409 'working allowance' = £591
£591 - 63p per £1 (£372.33) 'A'　


'Award' + child allowance + childcare (up to 85%) - A (£372.22) = end award figure

That's correct method (the terminology is actually 'standard allowance', 'child element' and 'childcare element'). From £8th April work allowance went up to £503 (for those with no housing element) - I don't know how the £409/£503 is applied for an assessment period that crosses over the 8th April. Note also that there is a cap to childcare costs also.

https://www.entitledto.co.uk/help/Calculating-Universal-Credit
https://www.entitledto.co.uk/help/Work-allowance-Universal-Credit
https://www.entitledto.co.uk/help/Childcare-overview-Universal-Credit

https://www.entitledto.co.uk/help/Universal-Credit-Rates

Zoezo

Thank you calcotti - I'm new to benefits so not up on the terminology yet!
I don't hit the childcare cost cap luckily (it's expensive but not that expensive) my period crosses 18th - 19th, so I won't see the £503 until May - no housing element.
Thanks for the clarification, I can check all is correct next time

calcotti

In your case
standard allowance - £317.82
child element - £508.75
maximum entitlement = £826.57 plus allowable childcare element.

Going forward for net earnings of £1000. Earnings taken into account £497 (after work allowance of £503). Earnings deduction £313.11.

UC payable = £513.46 plus allowable childcare element.