UC help please

kanari

Hi,

Me and my husband have a UC joint claim, we have two children, we didn't work for the last 12 months and our earning is £0, and we are affected by the benefit cap.

I have some questions if you could help please :

1 - My husband will start a part time job from next month and will earn £700 net a month, is this will take off the cap or he should earn it for the 12 months before claiming UC to be exempt from the cap ?

2 - Recently I knew that I can be exempt from the cap if I care for a disable person more than 35 hours a week, which I do I care for my disable sister who get PIP enhanced rate for both components and she get severe disable premium, the thing is I am unpaid carer and not getting carer allowance and don't want be paid anyway as I am not caring for her for money, so I want to know please how can I benefit from the cap exemption as an upaid carer, and how my sister premium will be affected if the UC add the carer element to my payment ?

Thank you

Spoonie_Turtle

Re number 2, do you mean the Severe Disability Premium?  Which benefit does she claim that includes it?  If she does receive the SDP then you claiming the carers element of UC would stop her receiving the SDP.


Okay I've looked up benefit cap exemptions. 
https://www.gov.uk/benefit-cap/how-earnings-affect-when-benefit-cap-starts
You should be exempt with your husband's earnings.  The previous 12 months thing is to see if people are eligible for a 9-month grace period if their earnings stop or drop below the threshold.

The wording there, 'get UC because you care for someone ... ' seems to me to mean including the caring element.  However there are people here who may know for certain 

kanari

Spoonie_Turtle said:

Re number 2, do you mean the Severe Disability Premium?  Which benefit does she claim that includes it?  If she does receive the SDP then you claiming the carers element of UC would stop her receiving the SDP.


Okay I've looked up benefit cap exemptions. 
https://www.gov.uk/benefit-cap/how-earnings-affect-when-benefit-cap-starts
You should be exempt with your husband's earnings.  The previous 12 months thing is to see if people are eligible for a 9-month grace period if their earnings stop or drop below the threshold.

The wording there, 'get UC because you care for someone ... ' seems to me to mean including the caring element.  However there are people here who may know for certain 

Thank you so much for your reply and all information. 

Yes I mean severe disability premium and it's included in ESA support group. 

poppy12345

You have to be receiving either the carers element or carers allowance to be exempt from the benefit cap, just being an unpaid carer is not enough. If you claim either of those for looking after your sister then she will lose the Severe Disability premium (SDP) which is £67.30 per week.

When your husband starts working providing he earns at least £617 per month (after deductions) then you will be exempt from the benefit cap. See link for confirmation.

https://www.gov.uk/benefit-cap/when-youre-not-affected

His earnings will also reduce your UC by 63% if you don't have the work allowance. If you have dependent children on your UC claim then you will have a work allowance which means you can earn a certain amount each month before the deductions apply....  £293 per month if you receive help with your rent. Or £515 if you don't receive help with the rent. https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances

kanari

poppy12345 said:

You have to be receiving either the carers element or carers allowance to be exempt from the benefit cap, just being an unpaid carer is not enough. If you claim either of those for looking after your sister then she will lose the Severe Disability premium (SDP) which is £67.30 per week.

When your husband starts working providing he earns at least £617 per month (after deductions) then you will be exempt from the benefit cap. See link for confirmation.

https://www.gov.uk/benefit-cap/when-youre-not-affected

His earnings will also reduce your UC by 63% if you don't have the work allowance. If you have dependent children on your UC claim then you will have a work allowance which means you can earn a certain amount each month before the deductions apply....  £293 per month if you receive help with your rent. Or £515 if you don't receive help with the rent. https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances

Thank you so much for all information really helpful thank you. 

Yes we have two dependent children 10 and 6 years old on our UC,  and get help with rent aswell. 

poppy12345

That means you will be able to earn £293 per month before the 63% deductions apply. Use a benefits calculator and put in your husbands expected earnings in and it will tell you how much you'll be entitled to. Don't forget the standard allowance is expected to reduce by £86 per month from October 2021. https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=fb8d72cf-ecca-44a2-b58d-1a644cb81a52

kanari

Sorry to ask again,  so my husband will start to earn around £700 net a month with both child and housing elements in our UC, we will have the work allowance and will not have the deduction of 63% ?

poppy12345

kanari said:

Sorry to ask again,  so my husband will start to earn around £700 net a month with both child and housing elements in our UC, we will have the work allowance and will not have the deduction of 63% ?

Yes you will have the deductions but the first £293 of his earnings will not be counted so they will take into account £407 and this amount will used for the 63% deductions. Have you used the benefits calculator above as advised?

You will also not be affected by the benefit cap providing he continues to earn at least £617 per month.

kanari

poppy12345 said:

kanari said:

Sorry to ask again,  so my husband will start to earn around £700 net a month with both child and housing elements in our UC, we will have the work allowance and will not have the deduction of 63% ?

Yes you will have the deductions but the first £293 of his earnings will not be counted so they will take into account £407 and this amount will used for the 63% deductions. Have you used the benefits calculator above as advised?

You will also not be affected by the benefit cap providing he continues to earn at least £617 per month.

I am really grateful for all the help and information you gave me thank you so much. 

Yes I have used the calculater and all is clear for us now.