Claiming UC housing element while working

bevnhayley

Hi,  I need some advise on how accurate entitled to and turn2us calculators are, I have been on these and both say I will be entitled to around £600 per month to help with my private rent for myself and 17 year old.
At the moment I am living with friends but now working full time earning £23500 per year, my 17 year old is working around 24 hours per week.  I have saved enough for a deposit but the monthly rent in north london is £1200 so I would need some assistance.  Before I take out a rental agreement would these calculators been acurate as i wouldn't be able to afford the rent and living costs if they are not.

poppy12345

They are only as accurate as the information you put into them. If you're not claiming child benefit for your child then for the UC if you're single then you'll be entitled to the standard allowance (over 25's) £409.89 and housing allowance for the 2 bedroom rate of Local housing allowance for the area that you're planning on living. Check the LHA here https://lha-direct.voa.gov.uk/

If you're child is still in full time education and you're still receiving child benefit for them then you'll also be entitled to the child element which is £281.25. You will also have a work allowance of £292 but if your child isn't in full time eduction there will not be work allowance which will mean your earnings will reduce your UC entitlement by 63% for every £1 you earn.

bevnhayley

Sorry I forgot her details she is 17 working 20 hours a week, so I dont get child benefit. I have put her details and mine accurately into the calculators, I'm just a bit concerned if they are accurate before I get into a rental agreement for the next 12 months.  

poppy12345

Then you won't receive the work allowance or the child element. It will just be the standard allowance (over 25) abd the housing element for the 2 bedroom rate as advised above. Check the link i posted to see what you maybe entitled to for this.

Your earnings will reduce your UC by 63% for every £1 you earn. Your daughters earnings won't affect how much you're entitled to. Non dependant deductions won't apply because she's under 21.

poppy12345

Do also be aware that the standard allowance has been increased temporary due to Covid19 and will be about £80 per month less from April 2021.

bevnhayley

Thank you so much for your help, I will check the link out.

poppy12345

I very much doubt that you will be entitled to as much as £600 per month UC. UC is based on earnings you receive during your monthly assessment period. For example, if you earned £2,000 during your AP with the 63% deductions you UC will be reduced as follows... £2,000 x 0.63 = £1,260 deductions.

bevnhayley

This is what I'm worried about, I dont want to sign a lease then fund out the calculators where not very accurate and then ending up in debt or not being able to afford the rent, but every calculator I try says roughly the same thing.

poppy12345

As i advised, they are only as accurate as the information you put into them. If you've put the incorrect info in then the calculation won't be correct. Did you check the LHA link that i posted? If so then how much is your maximum housing allowance for a 2 bed property in the area you're thinking of?

bevnhayley

This is the results from the link

North West London BRMA

Two Bedrooms Rate:

£287.67 per week

poppy12345

bevnhayley said:

This is the results from the link

North West London BRMA

Two Bedrooms Rate:

£287.67 per week

Per month that will be £1,246 Your standard allowance £409.89. Maximum UC entitlement = £1,655.89.

You stated above your annual earnings are £23,500. Monthly figure is £1958 x 0.63 = £1,233.75 deductions. Total UC monthly amount is £422.14. This will reduce further in April 2021.

You will of course need to change the monthly earnings figure yourself, if it's not correct and do the calculations as shown above. Not sure how you got the £600 amount.