Universal credit and apprenticeship

Gloomygob

Hello

Asking on behalf of a family member:

Single parent has the chance to do an apprenticeship. In the first year of the apprenticeship, they would be working 30+ hours a week but would be on the apprenticeship first year wage of £3.90 an hour. Would they be eligible for universal credit? If they were eligible, how much would they receive?

I'm having trouble finding a clear answer to this on google so any information would be really great.

Thanks!

calcotti

Apprentices can claim UC
https://www.litrg.org.uk/tax-guides/employment/apprenticeships
https://www.turn2us.org.uk/Benefit-guides/Apprenticeships-and-benefits/Apprentices-Work-related-requirements-under-Univer

Their maximum UC entitlement will include a basic living allowance, a child element and a housing element (if they pay rent). Because they are a parent a portion of there wages will be ignored (the amount ignored depends on whether or not they are receiving the housing element). For any wages in excess of the amount ignored there will be a 63% deduction from the maximum amount to arrive at the amount payable.
There are benefit calculators here https://www.gov.uk/benefits-calculators

Gloomygob

Thank you, that’s great and very helpful!

Do you know how the wages affects the universal credit in terms of job searching?

For example, if I work 30 hours at NMW it’s around £260 but if I work 30 hours at the apprentice NMW it’s £124. Will universal credit see that as working for 30 hours or will they judge it based on my age NMW and decide I’m only working 15 hours financially? Or do they recognise that I’m on apprentice NMW and adjust the hours to reflect that?

Thank you again!

calcotti

Gloomygob wrote: »

Thank you, that’s great and very helpful!

Do you know how the wages affects the universal credit in terms of job searching?

For example, if I work 30 hours at NMW it’s around £260 but if I work 30 hours at the apprentice NMW it’s £124. Will universal credit see that as working for 30 hours or will they judge it based on my age NMW and decide I’m only working 15 hours financially? Or do they recognise that I’m on apprentice NMW and adjust the hours to reflect that?

Thank you again!

If you read the second link in my previous post it says that an apprentice working for 30+ hours will have no work search requirements. I don't think the level of earnings is relevant (other than in respect of any earnings deduction to be made to calculate the amount of UC payable).

calcotti

It appears to be covered by Regulation 90 (4) of the UC Regulations
https://www.legislation.gov.uk/uksi/2013/376/regulation/90/made

Claimants subject to no work-related requirements - the earnings thresholds

90.—(1) A claimant falls within section 19 of the Act (claimants subject to no work-related requirements) if the claimant’s monthly earnings are equal to or exceed the claimant’s individual threshold.
---
(4) A claimant falls within section 19 of the Act if the claimant is employed under a contract of apprenticeship and has [F7monthly] earnings that are equal to or exceed the amount they would be paid for—
(a) 30 hours a week; or
(b) if less, the expected number of hours per week for that claimant,
at the rate specified in regulation 4A(1)(d) of the National Minimum Wage Regulations, converted to a monthly amount by multiplying by 52 and dividing by 12].
(b) if less, the expected number of hours per week for that claimant,

Gloomygob

Thank you very much! Really appreciate it

tomtom256

You might need to get someone in your local jobcentre to do a manual override of your labour market regime, as this is something the system will not automatically do, for people on an aprenticeship scheme.

It's in guidance, but the service centre and some work coaches may not know about it, as it isn't something covered in training.

Gloomygob

Is that something that would be done at the initial meeting with the work coach? Requesting the override I mean?

huckster

Why not get your relative to copy/paste the regulation 19 details of the act noted above into your journal and remind the Work Coach/Universal Credit that they need to apply the working enough- no work related requirements work group to your claim for the period of the apprenticeship,

Then when they see the Work Coach they can point to the journal message. Take the apprenticeship documents to the Job Centre, if not already provided, so the details can be recorded.

calcotti

Can also refer to Advice to Decision Makers
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/728459/admj2.pdf

Paragraph J2089

Apprentices
J2089 Where a claimant is working under a contract of apprenticeship then no work- related requirements can be placed on them if their monthly earnings are equal to or exceed the amount which would be paid at the NMW rate for apprentices working
1. 30 hours a week or
2. the expected number of hours per week for that claimant, if less than 301.
Note: in 1. and 2. above the amount should be calculated as a monthly amount (multiplied by 52 and divided by 12).

Couldn’t find this when I looked earlier in the week.

NedS

tomtom256 wrote: »

You might need to get someone in your local jobcentre to do a manual override of your labour market regime, as this is something the system will not automatically do, for people on an aprenticeship scheme.

It's in guidance, but the service centre and some work coaches may not know about it, as it isn't something covered in training.

Thank you - every day's a learning day