Universal Credit

TatyDanny

Hi There,

I wonder if anybody has any advise on my situation.
I began receiving UC in April 2019 as I was off sick from work and they stopped paying me sick pay.
Now fast forward to July 2019, after an ongoing sick pay dispute the company admitted fault and I received a back payment of £6,112 before tax.
The backpay was for underpayment of sick pay before I started receiving UC, can UC now stop my payments as a result of the back payment from my employer (who I am no longer employed with)?

Many thanks

[Deleted User]

TatyDanny wrote: »

Hi There,

I wonder if anybody has any advise on my situation.
I began receiving UC in April 2019 as I was off sick from work and they stopped paying me sick pay.
Now fast forward to July 2019, after an ongoing sick pay dispute the company admitted fault and I received a back payment of £6,112 before tax.
The backpay was for underpayment of sick pay before I started receiving UC, can UC now stop my payments as a result of the back payment from my employer (who I am no longer employed with)?

Many thanks

If course they will, it's income.

Sheepski

The assessment period in which you received the money will show a £0 payment for that month; as the £6,112 will be treated as income.

From then on; if you still have £6,000+ as capital your UC will be deducted by around £4.35 a month if at the level you mention.

TatyDanny

Sheepski wrote: »

The assessment period in which you received the money will show a £0 payment for that month; as the £6,112 will be treated as income.

From then on; if you still have £6,000+ as capital your UC will be deducted by around £4.35 a month if at the level you mention.

do you mean that I will not receive a payment for the month of the assessment where I received the payment of 5k and following that they will reinstate the payments I used to receive minus £4+?

Many thanks for your help

TatyDanny

_shel wrote: »

If course they will, it's income.

Even though that was money I was owed and didn't receive whist on sick leave. I was scraping by to make ends meet. I had to use my credit card to buy the necessities and I have needed to use a large portion of that 6k (actually 5k after tax) to pay back my credit card to avoid further charges?

[Deleted User]

TatyDanny wrote: »

Even though that was money I was owed and didn't receive whist on sick leave. I was scraping by to make ends meet. I had to use my credit card to buy the necessities and I have needed to use a large portion of that 6k (actually 5k after tax) to pay back my credit card to avoid further charges?

It doesn't matter what period it was for what matters is when it was paid.

In the month you get it it will be counted as income and you will get no UC.

Following months you will be classed as savings that could effect your payments if UC if you already have savings.

calcotti

Sheepski wrote: »

The assessment period in which you received the money will show a £0 payment for that month; as the £6,112 will be treated as income.

From then on; if you still have £6,000+ as capital your UC will be deducted by around £4.35 a month if at the level you mention.

The £4.35/month deduction would be each £250, or part thereof, above £6,000. The first £6,000 is ignored.

Given that you have spent most of the money to pay off debt there will be no impact on future payments of UC but you will not be entitled to anything in the month in which you received it. Check your journal to make sure your UC claim has not been closed. In theory this is supposed to happen when there is a nil entitlement. If i5. Has been closed you can make a rapid reclaim through your journal.

TatyDanny

calcotti wrote: »

The £4.35/month deduction would be each £250, or part thereof, above £6,000. The first £6,000 is ignored.

Given that you have spent most of the money to pay off debt there will be no impact on future payments of UC but you will not be entitled to anything in the month in which you received it. Check your journal to make sure your UC claim has not been closed. In theory this is supposed to happen when there is a nil entitlement. If i5. Has been closed you can make a rapid reclaim through your journal.

Thats very helpful thank you very much

NedS

_shel wrote: »

It doesn't matter what period it was for what matters is when it was paid.

In the month you get it it will be counted as income and you will get no UC.

Following months you will be classed as savings that could effect your payments if UC if you already have savings.

There is also the surplus earnings rule to consider as some of the £6,112 may carry forward to future months as surplus earnings and affect future UC payments.

calcotti

NedS wrote: »

There is also the surplus earnings rule to consider as some of the £6,112 may carry forward to future months as surplus earnings and affect future UC payments.

Good point, I’d forgotten that.

OP, it is possible that the sum will reduce your UC for the month after you received it as well (possibly to nil). The rules are complicated and how it affects you depends on what your maximum UC entitlement is.

It’s very unfair as has you received this money at the right time it would not have affected your UC but unfortunately it’s how the UC rules work.

Sheepski

calcotti wrote: »

The £4.35/month deduction would be each £250, or part thereof, above £6,000. The first £6,000 is ignored.

Which is what I said xD

That if they had the levels of capital they mentioned; £6112 then her UC would be reduced by £4.35 a month. If they spend some of that and went below £6k it wouldn't affect it.