Questions about Universal Credit on Maternity Leave

Moosic

Hi Everyone, I'm in need of some help on this. I'm currently three months into my maternity leave (first child born 16/11/2020) and due to return this november 2021. I will be receiving statutory maternity pay from my employer which i understand will be £151 a week. I live with my husband who is currently furloughed who earned £220.00pw before furlough, which is now £173.00pw. We have around £14,000 in savings, a house with a mortgage and £1300.00 going out per month on the mortgage and bills.  We have had a look at the UC application form to see if it is worth us applying, but it's quite confusing, would welcome any thoughts and advice please. I am 34 and have MS, my husband is 45. Thank you.

poppy12345

UC is based on earnings received during your monthly assessment period.  As you have a dependant child and won't be claiming for help with any rent then you will have a work allowance of £512 per month. Which means you can earn that amount of money each month before you start to see the 63% deductions.

If at least 1 of you is 25 then you'll be entitled to £409.89 standard couples allowance plus child element £235.83. As you have savings of more than £6,000 then your UC will be reduced by £4.35 per month for every £250 (or part there of over that amount)

My calculations are that you maybe entitled to a very small amount BUT because the standard allowance of UC is due to decrease from April 2021 by about £90 per month, unless they decide to keep the extra amount for longer because of Covid after April your UC will be reduced to zero from April 2021.

Use a benefits calculator to check the exact figures for yourself.

https://www.entitledto.co.uk/help/Universal-Credit-Rates

Edit to add, i note that you have MS do you claim a disability benefit such as PIP daily living or DLA mid/high rate care for yourself?

Moosic

Hi Poppy, thank you for all the info. I have just done a calculation and it looks like i'm not entitled to anything.
It was a little confusing on the better of calc 'Earnings and other income' page where it asked if i was in work. Obviously i'm on mat leave but I guess that would still mean I need to state that i am in employment.
With the MS situation i'm not classed in the PIP daily living or the DLA mid/high rate care.

Spoonie_Turtle

Moosic said:

Hi Poppy, thank you for all the info. I have just done a calculation and it looks like i'm not entitled to anything.
It was a little confusing on the better of calc 'Earnings and other income' page where it asked if i was in work. Obviously i'm on mat leave but I guess that would still mean I need to state that i am in employment.
With the MS situation i'm not classed in the PIP daily living or the DLA mid/high rate care.

What about the mobility?

pcman1985

Just to add, the couple over 25 element is £594.04 not £409.89 so you should get a but more UC , but of course could be reduced from April

calcotti

Earnings:- Net Earnings    1404.00 (324/week)

Less work allowance          512.00

Excess earnings                 892.00

Earnings tapered at 63%     561.96

Unearned Income:- Tariff Income 139.20 (on £14000)

 

Standard Allowance 594.04 plus Child Responsibility Element 235.83. Maximum Credit 829.87

Less tapered earnings 561.96 and unearned income 139.20

Universal Credit Payable 128.71/month

poppy12345

pcman1985 said:

Just to add, the couple over 25 element is £594.04 not £409.89 so you should get a but more UC , but of course could be reduced from April

Thanks for that. Of course i did know that but when looking for the figures, i noted the single person element, rather than the couples. Although if the OP filled out the benefit calculator correctly then it would have come back with that amount anyway.

poppy12345

calcotti said:

Earnings:- Net Earnings    1404.00 (324/week)

Less work allowance          512.00

Excess earnings                 892.00

Earnings tapered at 63%     561.96

Unearned Income:- Tariff Income 139.20 (on £14000)

 

Standard Allowance 594.04 plus Child Responsibility Element 235.83. Maximum Credit 829.87

Less tapered earnings 561.96 and unearned income 139.20

Universal Credit Payable 128.71/month

Which could potentially be about £90 less from April 2021, if the Government reduce the standard element.

Spoonie_Turtle

poppy12345 said:

calcotti said:

Universal Credit Payable 128.71/month

Which could potentially be about £90 less from April 2021, if the Government reduce the standard element.

Ohhhh I've just realised why they're willing to give a one-off almost equivalent payment and not keen on keeping the uplift - so fewer people are eligible for any UC.  Sorry, off-topic but that's just dawned on me.  Though we won't know until probably March what will actually be happening.

And back on-topic, might still be worth it for OP - an extra nearly £40 per month could really help.  (But yes, important to know and not be faced with a shock if they do remove the uplift.)