Universal Credit Payments - Varying figures

GregK2

Hello all, I wonder if anyone more knowledgeable than myself could review my UC payment figures. So far since our daughter started nursery and our claims began, I've had a hard time working out how some of it is calculated. The biggest variance seems to be with the childcare portion which I don't fully understand why. Then there's the housing allowance, which seems to be a strangely round number (£500) despite the rate we are entitled to. Then the random increase in that amount this month.

The deduction is also lower this month despite other things being broadly the same.

The May payment which covers April costs is the most bemusing to me.

TIA

calcotti

Housing costs = £118.52 x 52 / 12 = £513.59. Don’t know why DWP have varied the figure. You’d have to ask them.

The most likely explanation for lower childcare cost is that for some reason DWP have overlooked or misread one of the invoices you submitted. Again the only way to be sure is to ask them.

For the earnings deduction you get a part of your earnings, known as a work allowance, which is ignored. A deduction of 63% is made from earnings over this allowance. The allowance was increased for the first assessment period starting after early April. In your case this has kicked in with your June payment which has resulted in the reduced deduction.

huckster

With regard to childcare this is how they work it out.

Say assessment period (AP) is 10th May to 9th June.

Childcare is submitted to UC on 15th May as Childcare of £500 was paid on 15th May covering childcare dates 15th May to 14th June.

In this example UC will only include on this AP statement, the childcare that falls between 15th May and 9th June. The childcare from 10th June to 14th June will be in the next months UC statement. UC simply calculate daily rate of childcare i.e. £500 divided by number of days between 15th May and 14th June = daily rate x number of childcare dates in AP x 85%. They only pay childcare up to end of AP, as they don't include future childcare dates.

Using the same AP dates, if the childcare invoice submitted on 15th May and you paid on 15th May was say £500 but it covered childcare from 1st May to 31st May, then all of the childcare is payable in the AP statement. This is because UC will include childcare dates you have paid in arrears as well as childcare within the AP. They just don't pay childcare dates that fall within a future AP, until the relevant AP statement is reached.

Hope that is clear. You just have to remember to report the childcare in the same AP you paid for the childcare. UC will then include childcare, apportioned as above.

In regard to Housing, is this private rent, social rented ( housing association ) or shared ownership. If you look up your postcode on thr Local Housing Allowance website, which Broad market area do you live in. Some rates did increase April/May time and may have increased your Housing from June statement.

GregK2

Thankyou both for replying. It is becoming clearer! I am always reporting childcare as soon as the invoice is received to try and keep things as consistent as possible.
The housing is private rent, Peterborough area which I looked up yesterday and saw the 2 bed allowance is £118.52 per week but I hadn't looked this up before so it may have only just increased to that which explains the increase in housing payment this month.

Only thing I don't get is the low childcare payment received in May compared to other months.

calcotti

GregK2 wrote: »

Only thing I don't get is the low childcare payment received in May compared to other months.

Huckster and I have both given you possible explanations.

huckster

You can work it out for yourself.

When did you report the childcare to UC, which must be same AP as you paid it.

In the UC statement issued at the end of the AP you reported childcare was paid, you should see an amount which reflects.

1) childcare dates you paid for in arrears which were before the AP start date.
2) childcare dates that were within the AP.
3) less 85%

Remember to work out daily rate of childcare based on calender period and not the actual childcare dates. So 1st May to 31st May Childcare of £31 in total would be £1 per day. Any childcare dates that are beyond (future) the AP end date being considered, are included in the next AP statement.

GregK2

Thank you both for taking the time to explain things