Would I be better off changing to Universal Credit from Tax Credits?

calcotti

Nannytone said:

I may have missed it so I apologise if this question has already been asked.
OP, is your husband paid monthly or 4 weekly?

You didn't miss it - was not stated nor was question asked

Jobfromhome said: his paid weekly

That means the UC payable with fluctuate and will not be what I said per month (the total over a year will be unchanged).

Because UC is calculated monthly in some months he will have 4 weekly earnings payments taken into account and UC will be a bit higher than I calculated but every third month he will get 5 weekly payments taken into account and the UC payable will be less than I calculated.
https://www.gov.uk/government/publications/universal-credit-different-earning-patterns-and-your-payments/universal-credit-different-earning-patterns-and-your-payments-payment-cycles#if-youre-paid-weekly

What is his weekly take home pay?

Jobfromhome

poppy12345 said:

Jobfromhome said:

Nannytone said:

I may have missed it so I apologise if this question has already been asked.
OP, is your husband paid monthly or 4 weekly?

his paid weekly

This ^^ as UC entitlement depends on earnings received during your assessment period, as previously explaned. Being paid weekly will see some months will less money because of the payment cycles with his earnings because some months he will receive 5 wages rather than 4. See link and scroll down to weekly payments. https://www.gov.uk/government/publications/universal-credit-different-earning-patterns-and-your-payments/universal-credit-different-earning-patterns-and-your-payments-payment-cycles

dam so everytime he gets a 5 wage month I read it as the payments stop and we have to apply again

calcotti

Jobfromhome said: dam so everytime he gets a 5 wage month I read it as the payments stop and we have to apply again

That isn't correct.

When you have 5 weekly earnings payments within an assessment period, your income may be too high to qualify for Universal Credit in that month.

For some people that would happen but given the size of your entitlement you will just see a variation in the amount you receive. As per my previous post - What is his weekly take home pay?

Jobfromhome

calcotti said:

Nannytone said:

I may have missed it so I apologise if this question has already been asked.
OP, is your husband paid monthly or 4 weekly?

You didn't miss it - was not stated nor was question asked

Jobfromhome said: his paid weekly

That means the UC payable with fluctuate and will not be what I said per month (the total over a year will be unchanged).

Because UC is calculated monthly in some months he will have 4 weekly earnings payments taken into account and UC will be a bit higher than I calculated but every third month he will get 5 weekly payments taken into account and the UC payable will be less than I calculated.
https://www.gov.uk/government/publications/universal-credit-different-earning-patterns-and-your-payments/universal-credit-different-earning-patterns-and-your-payments-payment-cycles#if-youre-paid-weekly

What is his weekly take home pay?

take home is 350 a week

Jobfromhome

calcotti said:

Jobfromhome said: dam so everytime he gets a 5 wage month I read it as the payments stop and we have to apply again

That isn't correct.

When you have 5 weekly earnings payments within an assessment period, your income may be too high to qualify for Universal Credit in that month.

For some people that would happen but given the size of your entitlement you will just see a variation in the amount you receive. As per my previous post - What is his weekly take home pay?

he takes home 350 a week, yes I read it as we would have to reapply everytime he has a 5 week pay month. That would be so much hassle.

calcotti

Updated calculation based on 4 children and net earnings of £350/week.

housing £140/week = £606.67/month. Less housing costs contribution £75.53. Housing element £531.14

standard allowance £596.58, child 1 £282.50, children 2 - 4 (3 x £237.08) £711.24, housing £531.14. Maximum UC = £2.121.46

Month with 4 earnings payments. Earnings £1,400.00. Work Allowance £293.00. Earnings taken into account £1,107.00. Earnings deduction £697.41. UC payable £1,424.05.

Month with 5 earnings payments. Earnings £1,750.00. Work Allowance £293.00. Earnings taken into account £1,457.00. Earnings deduction £917.91. UC payable £1,203.65.

calcotti

Jobfromhome said:.. I read it as we would have to reapply everytime he has a 5 week pay month. That would be so much hassle.

That would only be the case if no UC was payable. (Even for those that it does apply to it isn't much hassle because there's  rapid reclaim process to reactivate the claim.)

strawb_shortcake

You may also be entitled to open a Help to save account, I think these are great ideas to encourage saving, and both you and your Husband can open one (if applicable)

Jobfromhome

calcotti said:

Updated calculation based on 4 children and net earnings of £350/week.

housing £140/week = £606.67/month. Less housing costs contribution £75.53. Housing element £531.14

standard allowance £596.58, child 1 £282.50, children 2 - 4 (3 x £237.08) £711.24, housing £531.14. Maximum UC = £2.121.46

Month with 4 earnings payments. Earnings £1,400.00. Work Allowance £293.00. Earnings taken into account £1,107.00. Earnings deduction £697.41. UC payable £1,424.05.

Month with 5 earnings payments. Earnings £1,750.00. Work Allowance £293.00. Earnings taken into account £1,457.00. Earnings deduction £917.91. UC payable £1,203.65.

you are so good with figures,

so UC payable £1,424.05 on 4 week pay months

and

UC payable £1,203.65. on 5 week pay months

plus our child benefit

then it all changes when our 18 year old goes to uni

but like I say we get 170 a week TC now due to go down to 121 a week August 31st

its like UC nearly pays our whole rent. If this is all near enough right it would be amazing for us

calcotti

Actual UC will vary with actual wages received. Calculation assumes that the net pay of £350 is the correct figure. The figure UC will use will be the gross pay less NI, income tax and pension contributions. If there are any other deductions these may be added back for UC purposes.