UC Calculator Vs Award

andylong42

I used to receive Tax Credits until I took a new job with a good pay rise. Last year I was made redundant and have taken a cut in wage so thought I might as well try UC. I completed the calculator and to my surprise it said I should receive over £300. I completed my application in early November and it offered me an advance of £750. A bit of googling showed this is the amount of the first payment, so that made sense with a months back payment. I was expecting to get my award for this kind of figure and even started to budget for Christmas on it. 

I've just received my award online and it's a big fat zero. I phoned them and they said it's because I earn too much, however I entered that amount accurately in both the calculator and application. My salary is approx £39,500 (it varies month to month) but my wife doesn't work and we receive DLA & Carers for our son.
In fact, the award is actually - (minus) £1400, based on my take home pay of £2300 this month x 63%.
I have gone through the calculator again very carefully and it is still saying £350Ish per month. I also took the advance last month so I'm worried about paying back now. 
What is going on???? Does my salary sound too high to receive UC? 

calcotti

andylong42 said: Does my salary sound too high to receive UC? 

That depends on your maximum UC entitlement which in turn depends on your circumstances so there is no way to answer that question without more information. How much is rent? How many children? What level of DLA does son receive? Any savings?

andylong42 said: In fact, the award is actually - (minus) £1400, based on my take home pay of £2300 this month x 63%.

That sounds as if you are misreading the Statement, £2300 x 63% is £1449 so that is the earnings deduction to be taken into account not the UC payable amount.
The Carer’s Allowance will also be deducted in full - £291.42/month.

UC maximum amount will include couple element, housing element (for rent), child element, carer element and possibly disabled child element.

If you are including rent did you check the maximum allowed http://lha-direct.voa.gov.uk/search.aspx

NedS

Please can you detail exactly what is says on your statement - the different elements you have been awarded, and how much, and also the deductions that have been made, what they are for and how much.

andylong42

Here is the full reward. I am not querying the fact I am not entitled to UC, I am just concerned that I put the same information into the calculator and got a figure of £350/month. I am also concerned that I received an advance of £750.00 that I now owe back which I assumed would have been deducted from the monthly award. I was surprised that I am entitled to anything due to my salary, but based on the calculator and the advance I presumed it must be correct. 

With regards to rent I own my home (mortgaged). 

Standard allowance

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

£594.04

Carer

You said that XXXX is caring for someone.

£162.92

Total entitlement before deductions

£756.96

What we take off (deductions)

Take-home pay

Take-home pay is what's left after tax, National Insurance and any pension contributions have been deducted.

The amount we'll use to work out your Universal Credit is £0.00

Take-home pay breakdown for XXXX

Earnings reported by your employer	£2,314.55

The amount we'll use to work out your Universal Credit is £2,314.55

The total take-home pay for XXX and XXX this period is £2,314.55

Every £1.00 you earn in take-home pay reduces your Universal Credit by 63 pence.

From 30 March 2020, the Minimum Income Floor does not apply.

We will tell you when this changes. Find more information in your journal.

‑ £1,458.17

Other benefits

We take money off your payment

As this is an average of other benefits that you're continuing to claim

Hayley Long:

Carer's Allowance‑ £291.42

Total deductions

‑ £1,749.59

calcotti

They haven’t included anything for your child or children (who I assume lives with you). What level of DLA does he get? Did you provide details when you claimed UC.

if a child was included not only would your maximum amount be higher but £512 of your earnings would be ignored which reduces the earnings deduction by £322.56.

obviously we can’t compare it with the calculator result because we don’t know what you entered into the calculator.

andylong42

Thats interesting - I have 3 children, one of which gets lower rate mobility and middle rate care. So they have missed all 3 off the claim? I have been very careful to ensure the information I entered into the calculator is accurate and matches my application. 

calcotti

andylong42 said:

Thats interesting - I have 3 children, one of which gets lower rate mobility and middle rate care. So they have missed all 3 off the claim? I have been very careful to ensure the information I entered into the calculator is accurate and matches my application. 

Did you declare the children when you claimed UC. Were they all born before April 2017?

You should post a note on your journal in the payments section saying that you have looked at your statement and note that your children have not been included in the calculation and would they please review the calculation.

poppy12345

Do they all live with you if so did you include them in your claim? Was at least 1 of them born after April 2017? Are they all in full time non advanced education?

Forget about what you entered into the calculator because that doesn't matter now.

andylong42

Yes I definitely did. Thanks for the advice -I've updated my journal asking them to check this. Fingers crossed! 

calcotti

If all three children were born before April 2017 that adds a child element of £752.51. There would also be a lower rate disabled child element of £128.25. This increases the maximum UC entitlement to £1,638.12. Because of the earnings disregard referred to earlier the total deductions are now £1,427.03. This leaves UC payable of £211.09.

However there will be a deduction to repay the advance. If you agreed to pay this back over 12 months the deduction will be £62.50/month so you will only be paid £148.59.

Perhaps you would be kind enough to come back and let us know how you get on.

andylong42

I certainly will. Hopefully I will hear back tomorrow on my journal. One other question - I mentioned that my take-home pay fluctuates monthly. The figure they have based this on I presume will be my December pay (I get paid on the 7th and haven't seen a payslip yet). Will the award be calculated monthly depending on the pay that month? My November pay was lower than this.