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Limited Capacity for Work decison and getting a job - An urgent enquiry!

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Comments

  • calcotti said:
    So maximum UC is £1070.03. You are paid £1039.56 because of the deduction (presumably for an advance or debt). The fact that some of this is paid direct to your landlord can be ignored.  
    Because you have LCWRA you will have a Work Allowance of £292.
    If the deduction is ignored your UC nil threshold is £1070.03 / 0.63 + £292 = £1,990.46. This is the amount you could earn before your UC entitlement would be nil.

    if you earned £1000/month (after tax, NI and pension contributions) the earnings deduction would be (£1000-£292) x 63% = £446.04.
    if you earned £900/month the earnings deduction would be (£900-£292) x 63% = £383.04.

    Be award though that if you are reassessed and found Fit for Work you would lose not only the LCWRA element but also the Work Allowance.
    Thank you so much, you've made it make sense!
    If i may use your calculations as example -
    Maximum UC : £1,070.03 - Deductions from wages - £383.04 = £686.99
    Wages :  £900 - Deductions - £383.04 = £516.96
    UC + Wages = £1,203.95

    Is that correct? Or am I missing something? 

  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 25 March 2021 at 1:14PM
    BamberBoing said:Maximum UC : £1,070.03 - Deductions from wages - £383.04 = £686.99
    Wages :  £900 - Deductions - £383.04 = £516.96
    UC + Wages = £1,203.95
    Is that correct? Or am I missing something? 
    You have misunderstood. If your earnings are £900 that is what you receive as earnings. The earnings deduction is what is deducted from the UC maximum amount to arrive at the amount payable..
    So in the scenario above
    Maximum UC : £1,070.03 - Deductions for wages - £383.04 = £686.99
    Wages :  £900
    UC + Wages = £1,586.99
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • calcotti said:
    BamberBoing said:Maximum UC : £1,070.03 - Deductions from wages - £383.04 = £686.99
    Wages :  £900 - Deductions - £383.04 = £516.96
    UC + Wages = £1,203.95
    Is that correct? Or am I missing something? 
    You have misunderstood. If your earnings are £900 that is what you receive as earnings. The earnings deduction is what is deducted from the UC maximum amount to arrive at the amount payable..
    So in the scenario above
    Maximum UC : £1,070.03 - Deductions for wages - £383.04 = £686.99
    Wages :  £900
    UC + Wages = £1,586.99
    Ah, I see!  Really huge thanks for making me understand! Think I was tying myself up in mathmatical knots!  :s
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Going from no work to 25 hours a week is a big jump so make sure you look after your health.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • willow_loulou
    willow_loulou Posts: 1,067 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Hi, 
    live been doing permissible work whilst on ESA for several years now, I only do a few hours a week and that’s enough for me. 
    If you’re capable of 25 hours a week I wouldn’t expect to remain on the reduced capacity for working for very long. If I were you I would start on fewer hours and make sure you can manage before jumping into the 25. This gives you the security of the benefit moving forward in case you can’t cope. The most important thing here is that you look after yourself and don’t take on too much. I have a life long life restricting illness that I manage by pacing myself. It’s the key to returning to work. 
    Take care of yourself and good luck, oh and well done on getting a job! 
    Life happens, live it well.
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