Calculate when UC would restart

longwalks1

A friend of mine has been on universal credit while off work sick for a long term illness for 2 years. He was made redundant in January and received £9,400 redundancy and back dated holiday pay.  Since being made redundant, his UC has stopped (which he fully understands) we assume because he had a large 1 off payment from his ex-employer.  The majority of this payment had gone to clear rent arrears (he has a private landlord who’s been pretty fair with him) and debts to family and friends. How would we work out when his UC would start again?

[Deleted User]

 If and when he notifies them he has used his savings. 

calcotti

britishboy said:

A friend of mine has been on universal credit while off work sick for a long term illness for 2 years. He was made redundant in January and received £9,400 redundancy and back dated holiday pay.  Since being made redundant, his UC has stopped (which he fully understands) we assume because he had a large 1 off payment from his ex-employer.  The majority of this payment had gone to clear rent arrears (he has a private landlord who’s been pretty fair with him) and debts to family and friends. How would we work out when his UC would start again?

That depends on why it stopped. You don't say when this payment was received and how many assessment periods have gone with no payment. Has the claim been closed or is it simply that his latest statement showed that nothing is payable? 

If the £9,400 was redundancy it should have been treated as capital and if this took him over £16,000 that would end UC entitlement altogether.
If he wasn't over £16,000 then the amount over £6,000 would reduce UC payable. He would need to inform them if he spent this and update them on his current capital.

The backdated holiday pay will have been treated as earnings and could result in nil payment for this AP. Unless there are surplus earnings to be taken into account next month his UC next month will be back to normal. 
He needs to look at his UC statement to see how the money has been treated.

If the claim was closed he needs to reclaim. He should be able to log into his journal and do a rapid reclaim. Note that if he does this all of the existing claim history will disappear so it would be advisable to download everything of importance (confirmation of LCWRA, monthly statements etc.) in case he needs to refer back.