Are my calculations correct?

Johnm2019

Hi,

I have just been let go by my employer and updated the change last night on my Universal Credit account. My Universal credit amount is calculated between the 27th of the month to the 26th of the following month. My usual payment date from UC is the 3rd.  I just got my statement saying I will be paid £859 on the 3rd of November due to me receiving about £1200 through work.

I am expecting one final payment of about £200 this Friday the 30th, so am I correct in thinking that my December 3rd payment would be the full entitlement of £1554 due to my income between the 27th of October to the 26th of November being £200. I have also checked and seen that the benefit cap will apply to me from the 26th of November as I've had a 9 month grace period. We live in outer London, private rent and have a baby. Can I just confirm that I should still receive about £1550 next month, very worried the cap means I will get 0 due to the amount I've previously earned. If someone could put my worries at ease I'd be very grateful.

calcotti

Johnm2019 said: I am expecting one final payment of about £200 this Friday the 30th, so am I correct in thinking that my December 3rd payment would be the full entitlement of £1554 due to my income between the 27th of October to the 26th of November being £200. 

As you have a child you will have a Work Allowance of £292/month. If the £200 is your only household income in this month it will be ignored because below the Work Allowance. You will therefore, as you say, be entitled to the full UC amount.

The benefit cap limits the maximum amount of benefit you can receive in a week. It cannot nil the amount. Previous earnings are not relevant.
If you have been earning more than  £604/month for the last twelve months the benefit cap grace period will not have started yet. https://www.gov.uk/benefit-cap/how-earnings-affect-when-benefit-cap-starts

When you say you live in outer London is that inside or outside Greater London - it makes a difference to the benefit cap amount when this applies.
If outside Greater London the cap limits your benefit to £364.62. To work out the maximum UC if the cap applies you need to deduct Child Benefit so £364.62 - £21.05 = £343.57/week which is £1,488.80/month.
[EDIT - I inadvertently used the wrong figure for the cap in this post - see correction later in thread.]
If inside Greater London the cap limits your benefit to £442.31. To work out the maximum UC if the cap applies you need to deduct Child Benefit so £442.31 - £21.05 = £421.26/week which is £1,825.46/month which therefore wouldn't impact your entitlement.

Johnm2019

calcotti said:

Johnm2019 said: I am expecting one final payment of about £200 this Friday the 30th, so am I correct in thinking that my December 3rd payment would be the full entitlement of £1554 due to my income between the 27th of October to the 26th of November being £200. 

As you have a child you will have a Work Allowance of £292/month. If the £200 is your only household income in this month it will be ignored because below the Work Allowance. You will therefore, as you say, be entitled to the full UC amount.

The benefit cap limits the maximum amount of benefit you can receive in a week. It cannot nil the amount. Previous earnings are not relevant.
If you have been earning more than  £604/month for the last twelve months the benefit cap grace period will not have started yet. https://www.gov.uk/benefit-cap/how-earnings-affect-when-benefit-cap-starts

When you say you live in outer London is that inside or outside Greater London - it makes a difference to the benefit cap amount when this applies.
If outside Greater London the cap limits your benefit to £364.62. To work out the maximum UC if the cap applies you need to deduct Child Benefit so £364.62 - £21.05 = £343.57/week which is £1,488.80/month.
If inside Greater London the cap limits your benefit to £442.31. To work out the maximum UC if the cap applies you need to deduct Child Benefit so £442.31 - £21.05 = £421.26/week which is £1,825.46/month which therefore wouldn't impact your entitlement.

Hi, thanks for your response. We live outside of London, we are in Southend. Regarding your calculations, I was under the impression the limit was 384.62 outside of Greater London. If thats correct would it be 384.62 x 4 = about £1540.  Then regarding child benefit we normally get £82 a month. Would that then cease to be paid?  As I need to claim for council tax reduction but on previous occasions of applying they have asked for bank statements showing UC amount, but I was told on here recently I should be able to apply straightaway. As my council tax is due on the 10th of each month.

Johnm2019

If it helps I have copied and pasted the following from my UC account

What you're entitled to

Standard allowance

You get a standard amount each month. You said you're in a couple

£594.04

Housing

You said your rent is £725.00 per month.

You will have to pay your housing to your landlord.

£725.00

Children

You get support for 1 child

£235.83

Total entitlement before deductions

£1,554.87

calcotti

Johnm2019 said: Hi, thanks for your response. We live outside of London, we are in Southend. Regarding your calculations, I was under the impression the limit was 384.62 outside of Greater London. If thats correct would it be 384.62 x 4 = about £1540.  Then regarding child benefit we normally get £82 a month. Would that then cease to be paid?  As I need to claim for council tax reduction but on previous occasions of applying they have asked for bank statements showing UC amount, but I was told on here recently I should be able to apply straightaway. As my council tax is due on the 10th of each month.

Quite right - my apologies I mistyped it and copied the error into the calculation!
£384.62 - £21.05 = £363.57/week x 52 / 12 = £1,575.47/month maximum UC payable even if entitlement is otherwise higher. 

Child Benefit will always be paid. The cap would reduce the amount of UC payable but based on what you have posted the capped amount is slightly higher than your entitlement so will not affect you.
Apologies for my error earlier.

in respect of CTR many councils access DWP data so if you are in receipt of UC you would not have to provide further information as they will base the calculation on the figures used for UC - but probably not true for all councils.

Johnm2019

calcotti said:

Johnm2019 said: Hi, thanks for your response. We live outside of London, we are in Southend. Regarding your calculations, I was under the impression the limit was 384.62 outside of Greater London. If thats correct would it be 384.62 x 4 = about £1540.  Then regarding child benefit we normally get £82 a month. Would that then cease to be paid?  As I need to claim for council tax reduction but on previous occasions of applying they have asked for bank statements showing UC amount, but I was told on here recently I should be able to apply straightaway. As my council tax is due on the 10th of each month.

Quite right - my apologies I mistyped it and copied the error into the calculation!
£384.62 - £21.05 = £363.57/week x 52 / 12 = £1,575.47/month maximum UC payable even if entitlement is otherwise higher. 

Child Benefit will always be paid. The cap would reduce the amount of UC payable but based on what you have posted the capped amount is slightly higher than your entitlement so will not affect you.
Apologies for my error earlier.

in respect of CTR many councils access DWP data so if you are in receipt of UC you would not have to provide further information as they will base the calculation on the figures used for UC - but probably not true for all councils.

Hi Calcotti, thanks again for your in depth answer, however just slightly confused!!

My Universal credit account says I am entitled to £1554.87 each month. The benefit cap as you said is £1575.47 a month for my circumstances, I thought child benefit was one of the benefits included in the benefit cap. Would that mean I'd only get about £21 child benefit?  

Just a bit confused when you say I'll get the full UC entitlement plus my child benefit so equalling about £1640 month when the cap is £1575.  Thanks a lot for your help with this!!

Johnm2019

Just had a quick look and can see the following-

£384.62 per week (£ 1,666,67 per month or £20,000 per year) for couples and lone parents outside Greater London.

So our Max UC income is £1554, plus the £84 CB making £1638.  So we are just below that so would get around the £1638 figure each month?  This makes sense if correct!!

calcotti

Johnm2019 said:

calcotti said:

Johnm2019 said: Hi, thanks for your response. We live outside of London, we are in Southend. Regarding your calculations, I was under the impression the limit was 384.62 outside of Greater London. If thats correct would it be 384.62 x 4 = about £1540.  Then regarding child benefit we normally get £82 a month. Would that then cease to be paid?  As I need to claim for council tax reduction but on previous occasions of applying they have asked for bank statements showing UC amount, but I was told on here recently I should be able to apply straightaway. As my council tax is due on the 10th of each month.

Quite right - my apologies I mistyped it and copied the error into the calculation!
£384.62 - £21.05 = £363.57/week x 52 / 12 = £1,575.47/month maximum UC payable even if entitlement is otherwise higher. 

Child Benefit will always be paid. The cap would reduce the amount of UC payable but based on what you have posted the capped amount is slightly higher than your entitlement so will not affect you.
Apologies for my error earlier.

in respect of CTR many councils access DWP data so if you are in receipt of UC you would not have to provide further information as they will base the calculation on the figures used for UC - but probably not true for all councils.

Hi Calcotti, thanks again for your in depth answer, however just slightly confused!!

My Universal credit account says I am entitled to £1554.87 each month. The benefit cap as you said is £1575.47 a month for my circumstances, I thought child benefit was one of the benefits included in the benefit cap. Would that mean I'd only get about £21 child benefit?  

Just a bit confused when you say I'll get the full UC entitlement plus my child benefit so equalling about £1640 month when the cap is £1575.  Thanks a lot for your help with this!!

The benefit cap is £384.62/week. You use up £21.05/week of this with Child Benefit. This leaves £363.57/week which is £1,575.47/month. This would be the maximum amount of UC you could receive. From what you have posted your entitlement is £1,554.87 which is less than the capped amount - therefore the cap does no affect your UC.

The figure of £1,575.47/month already takes the Child Benefit into account (the deduction of £21.05). The actual benefit cap of £384.62/week is £1,666.67/month (£20,000 per annum).

I think you are also confusing yourself by thinking of a month as 4 weeks - it isn't. A monthly amount is calculated by multiplying the weekly amount by 52 and dividing by 12 (so 4.33 weeks).