SEISS May payment being classed as surplus income affecting July Universal Credit calculation

luckynumber13

I have just submitted and received this months payment info on UC.  They still seem to be using the SEISS payment from May to reduce our UC payment by counting it as earnings on going (so July affected by a payment that was supposed to cover March, April and May support). 

Has anyone else had this happen - I have messaged them via the UC online portal to ask if this is correct? 

I work in the events industry so we aren't even allowed to go back to work yet as our type of events is still banned so its not like I can work if I wanted to (which I do). 

luckynumber13

I ave just found some info in the journal section.  They have classed a proportion of the SEISS as surplus income and deducted it from the July claim.  My understanding is that SEISS was not being processed in this way.  Anyone else had it happen? 

poppy12345

Yes surplus earnings can affect following UC payments. It will depend on your maximum UC entitlement and how much SEISS you received. https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/self-employment/surplus-earnings-and-losses/

luckynumber13

Great thanks, I am sure when the SEISS was launched the surplus rule was not going to apply, but at least they have used all the surplus up this month so will be able to claim more next month.  Its so annoying when the grant doesn't replace our lost earnings and also the 3 month grant is now covering 6 months period yet furlough covered employed people each month from March and will go right through to October, and we can't go back to work either :-( 

bradztheman

luckynumber13 said:

I ave just found some info in the journal section.  They have classed a proportion of the SEISS as surplus income and deducted it from the July claim.  My understanding is that SEISS was not being processed in this way.  Anyone else had it happen? 

How much was your grant amount? And how much does they class as surplus income?

bradztheman

If i declared 2300 grant last month will i get anything for UC this month? When i declared it in mid june i didnt get a UC payment for end of june, will i get one end of july?

poppy12345

bradztheman said:

If i declared 2300 grant last month will i get anything for UC this month? When i declared it in mid june i didnt get a UC payment for end of june, will i get one end of july?

It will depend what your maximum UC entitlement is.

bradztheman

poppy12345 said:

bradztheman said:

If i declared 2300 grant last month will i get anything for UC this month? When i declared it in mid june i didnt get a UC payment for end of june, will i get one end of july?

It will depend what your maximum UC entitlement is.

£400 ish

bradztheman

So will i or won't i get that this month?

calcotti

luckynumber13 said:

Great thanks, I am sure when the SEISS was launched the surplus rule was not going to apply, but at least they have used all the surplus up this month so will be able to claim more next month. 

I recall that the Understanding UC website was updated early on to make clear that SEISS would be taken into account as earnings in the normal way and mentioned the surplus earnings rules (without going into detail). It has since been expanded to provide more information https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/self-employment/

calcotti

poppy12345 said:

bradztheman said:

If i declared 2300 grant last month will i get anything for UC this month? When i declared it in mid june i didnt get a UC payment for end of june, will i get one end of july?

It will depend what your maximum UC entitlement is.

In this case because of the £2500 disregard it is probable that the grant will only affect the month in which it is received given that the grant is less than £2500 - however it could be affected by other there is other income to be taken into account.
If there is no other income I would expect full UC the following month.