We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Still receiving UC when working?

Options
My daughter was on UC for about 12 months

She started a Restart scheme about 6 months ago, earing about £880 a month but still appears to receive a small amount of UC (about £4.00 last time she checked)

Is this correct, why is she still getting UC when earning £880 a month?

She lives at home so no housing to take in to consideration.
«13

Comments

  • Rubyroobs
    Rubyroobs Posts: 1,084 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Earnings will reduce her monthly Uc by 55p for each pound she earns so it is possible she will still get a little Uc.
  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    edited 24 June 2022 at 4:59PM
    She would need to look at her UC payment calculation to establish that.

    What UC elements does she receive?

    Have UC her correct pay details?

    Does she have a work allowance?

    Etc,etc

    Has she notified UC of relevant changes ?

    If incorrect, UC will recover any overpayments from her.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,303 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    UKSBD said:
    My daughter was on UC for about 12 months

    She started a Restart scheme about 6 months ago, earing about £880 a month but still appears to receive a small amount of UC (about £4.00 last time she checked)

    Is this correct, why is she still getting UC when earning £880 a month?

    She lives at home so no housing to take in to consideration.
    Her UC statements will show how it's calculated and she should be able to see whether they've taken into account her wage properly.
  • UKSBD
    UKSBD Posts: 842 Forumite
    Part of the Furniture 500 Posts Name Dropper
    thanks all

    she's just logged in 
    for 14th June it says

    "Standard allowance = £265.31

    What we take off (deductions)
    Take-home pay =  ‑ £204.17

    Earnings reported by your employer = £944.22

    The first £573.00 of your take-home pay doesn't affect your Universal Credit monthly amount. Every £1.00 you earn in take-home pay over this amount reduces your Universal Credit by 55 pence.

    Savings and investments =  ‑ £39.15

    Total deductions = minus‑ £243.32

    Your total payment for this month is £21.99"

    I understand most of that but why doesn't "The first £573.00 of your take-home pay doesn't affect your Universal Credit monthly amount"

    Is that the same for everyone?


  • UKSBD
    UKSBD Posts: 842 Forumite
    Part of the Furniture 500 Posts Name Dropper
    I think I have found the answer.

    She has mental health issues

    Although she didn't get any extra money when on full UC she was classified as "limited capability for work" (the lower of the 2 versions, she wasn't expected to apply for work, but her advisor helped her with CV's and things like that)

    I think this is why she got on the Restart scheme, which she is still on now but still not sure if they will keep her on when it is finished.

    Her Universal Credit Coach (or whatever they are called) Knows her circumstances, so I assume everything is correct.

    IF she does carry on in employment, will she be reassessed and the £573 allowance will stop?


  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 24 June 2022 at 6:28PM
    Because she has LCW the first £573 of earnings are ignored (known as the Work Allowance). This means that the 55% taper rate is only applied to the remaining £371.22 and therefore only £204.17 is deducted from her maximum amount.

    If she did not have LCW the 55% would apply all the earnings and there would be no UC entitlement.

    When she reaches 25 her maximum amount will increase to £334.91.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • UKSBD
    UKSBD Posts: 842 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Will she be reassessed for the LCW if they carry on employing her after the scheme finishes?

    She is one of those people that can slip through the net, although she can work, she is pretty unemployable unless the employer is really tolerant

    She has OCD tendencies and little jobs that most employers would expect someone to do in 10 minutes can take her 30+ minutes.

    The OCD also effected her even applying for jobs (which I assume is why she was on the LCW) The Restart scheme was a real godsend for her and has really helped, such a shame it wasn't longer  :/

    We've just got to hope her employer will keep her on when it is them who have to pay her.
  • UKSBD
    UKSBD Posts: 842 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Just to add - She only works 25 hours
  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,303 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    A reassessment can happen at any time, but it seems they're on hold for the moment anyway.  In terms of what happens next, maybe some others will have more insight.  

    It seems over the past couple of years more employers have really started to take note of equality and inclusion, so hopefully she may be more likely to find an accommodating employer than even just a few years ago.  Hopefully this current job will help boost her confidence to know she *is* employable by companies who actually value people and what they can do, and not just focus on profit.
  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    UKSBD said:



    She has OCD tendencies and little jobs that most employers would expect someone to do in 10 minutes can take her 30+ minutes.

    The OCD also effected her even applying for jobs (which I assume is why she was on the LCW) 
              May be worth looking at a PIP application (if see is not already getting it).

          https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.