Universal credit

Cheechee

Morning, 

I've now received my universal credit statement which tells me my standard allowance and support for 1 child plus deductions. Deductions were taken off because of a final payment from my employment (I'm now unemployed) and savings. (No problem because I expected this)

A few questions
1) do universal credit automatically know I will no longer receive any salary from a job.
2) after my tax credits stopped I have still been receiving child benefit, will that continue to be paid separately?
3) I am looking for a job but there was nothing on the statement about new style job seekers allowance. Should it be listed separately or is it included in the allowance?

Thanks

Cheechee

Just been googling and not sure if I need to claim separately for new style job seekers allowance, can I claim this alongside universal credit? Will it affect universal credit payment, is it worth doing.

Sorry for so many questions

Robbie64

You need to make a separate claim for new style JSA. It can be done online

https://www.gov.uk/jobseekers-allowance

Any JSA you receive will be deducted from your UC. The one advantage of getting JSA alongside UC is that it is paid every two weeks rather than once a month as is UC. You also get a better NI credit (class 1 instead of class 3). It is paid for 6 months. However, in terms of how much benefit you are paid over the course of a month, you will be no better off financially.

Your other questions:

1. Any earnings you get are reported by your employer to HMRC and through the RTI system passed to the DWP. Your UC is then automatically adjusted. Once your earnings cease and nothing is reported to HMRC / DWP then there will be nothing to deduct from your UC.

2. Child Benefit will continue to be paid separately.

Cheechee

Thanks for the info.
I have 36 years of qualifying NI contributions. I'm happy to be paid monthly.
Given this information, are there any benefits for me applying for new style JSA or should I just stay with universal credit on its own?

Robbie64

Cheechee said:

Thanks for the info.
I have 36 years of qualifying NI contributions. I'm happy to be paid monthly.
Given this information, are there any benefits for me applying for new style JSA or should I just stay with universal credit on its own?

Other than the two I mentioned, nothing really, especially if you're happy to be paid monthly. And with 36 years of qualifying NI contributions you should qualify for the maximum amount of State Pension in any case when you turn 66 or 67.

It's the big difference between the benefit system under UC and what went before (often referred to as the legacy benefits system). Back then you had to claim a contributory benefit if you were entitled to one before your income could be topped up by a means tested equivalent. So if you qualified for (old style) contributory JSA you had no choice but to claim that before you could be paid the means tested version of JSA (of which UC is now the equivalent).

calcotti

Robbie64 said:...And with 36 years of qualifying NI contributions you should qualify for the maximum amount of State Pension in any case when you turn 66 or 67.

Not necessarily. If OP has been contracted out at any stage they may not get full New State Pension even with 36 years of NI.
OP, it would be worth checking your State Pension forecast to see if you can increase your State pension with extra years. If you have a government gateway account you should be able to access your forecast online, if not you can ring the Future Pension Service on 0800 731 0175.

Robbie64

^

I have to admit I hadn't fully read up on the rules re: the new State Pension as my forecast had always shown I would get the full amount (£175.20 per week based on 2020/21 benefit rates) and that I "cannot improve (my) forecast any more". I had assumed it was because I have the minimum 35 years of qualifying NI contributions (in fact I have 38). Having now read how the new State Pension is calculated I realise it's not as clear cut as that.

calcotti

Robbie64 said: Having now read how the new State Pension is calculated I realise it's not as clear cut as that.

It’s going to be a long transition period during which time some people wii get less than the full new State Pension while others may get more.

Cheechee

I've checked my state pension forecast and it says

£175.20 is the most you can get

You cannot improve your forecast any more.

I was also contracted out many years ago.

So in terms of claiming universal credit, should I claim new style JSA as well.

Could someone tell me what is the best thing to do.

Thanks

calcotti

You get credits for State Pension from both JSA and UC sorry I got sidetracked in my last answer). In your case it makes no difference anyway. 

It’s up to you whether or not you wish to claim JSA as well As UC. As already explained you will not get more money overall by claiming JSA as well as UC but JSA is paid fortnightly whereas UC is paid monthly. With JSA you get Class 1 NI credits, with UC you get Class 3. The Class 1 Credits count for more than just State Pension https://www.gov.uk/national-insurance/what-national-insurance-is-for

A disadvantage to claiming JSA would be that it is taxable income so you may have to pay tax on it at a later date (it will not be taxed at source). Universal Credit is not taxable.