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Starting work and impact on benefits

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  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 18 January 2023 at 12:23PM
    However I would really like to know if anyone knows clearly if they will then remove the Benefits Cap due to my employed work. 
    Your employment status doesn't affect the benefit cap. It's going to be based on your earnings and UC only takes earnings into account when they are received.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,334 Forumite
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    edited 18 January 2023 at 12:27PM
    What are your caring responsibilities?  If you get the carer element you should be exempt from the cap.
  • poppy12345
    poppy12345 Posts: 18,880 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper
    Thanks for your warm wishes. That is far more than the Job Centre have given me. I was very surprised to not get so much as anything close to a 'congratulations' when I informed them I had got a job. I'm tough enough to not care, but it was harsh of them in my opinion....

    I do agree

    Anyway, I can ask my sister to loan me some money. If they apply the Benefits Cap for my payment on 2 March, then that combined with my earnings will just about cover my rent and bills but maybe not food. So I'll need to borrow some money. But it seems unfair if they apply the Benefits Cap given that I would have been working almost the whole of the assessment period.

    Could you get a Budgeting Advance as getting a job should cover a reason
    Unless they've earned more than £2,600 in the past 6 months. (£3,600 for couples) https://www.gov.uk/universal-credit/other-financial-support


  • HillStreetBlues
    HillStreetBlues Posts: 6,104 Forumite
    1,000 Posts Third Anniversary Homepage Hero Photogenic
    edited 18 January 2023 at 2:05PM
    Thanks for your warm wishes. That is far more than the Job Centre have given me. I was very surprised to not get so much as anything close to a 'congratulations' when I informed them I had got a job. I'm tough enough to not care, but it was harsh of them in my opinion....

    I do agree

    Anyway, I can ask my sister to loan me some money. If they apply the Benefits Cap for my payment on 2 March, then that combined with my earnings will just about cover my rent and bills but maybe not food. So I'll need to borrow some money. But it seems unfair if they apply the Benefits Cap given that I would have been working almost the whole of the assessment period.

    Could you get a Budgeting Advance as getting a job should cover a reason
    Unless they've earned more than £2,600 in the past 6 months. (£3,600 for couples) https://www.gov.uk/universal-credit/other-financial-support


    Why I used could, as I don't know how much OP has earned.
    OP  knows about it so OP can check if  qualifies.
    Let's Be Careful Out There
  • tomtom256
    tomtom256 Posts: 2,249 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    calcotti said:
    How long does that decision normally take? 
    Presumably this is a much easier decision for UC to make in a case where someone has obtained employment than in the case of someone who wants to reduce their self employment in order to be a jobseeker. Will OP be expected to take to appointment evidence of the new employment?

    Decision made by the end of the hour long appointment and yes if moving to PAYE, just need contract of employment or proof of job offer. If ceasing self-employment, will need evidence to show that, yes not as easy to proev, but should get an answer within the hour, unless further evidence is required.
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    What are your caring responsibilities?  If you get the carer element you should be exempt from the cap.
    I overlooked the possible implications of reference to caring.
    OP, if you provide 35 hours of care to someone who gets a disability benefit (mid care or high rate care DLA, either rate of Daily Living PIP or AA) but you don't already get the carer element you should report a change to your caring responsibilities. That would increase your maximum UC amount by £168.81 (assuming you don't get the LCWRA element). As spoonie says, if you are a carer you are except from the Benefit Cap.
    https://www.gov.uk/benefit-cap/when-youre-not-affected
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Did you check the grace period others advised ?
    The grace period for the Benefits Cap? I won't be eligible as I have only earned above the min amount for removal of Benefits Cap since September 2022
  • calcotti said:
    However I would really like to know if anyone knows clearly if they will then remove the Benefits Cap due to my employed work. 
    Your employment status doesn't affect the benefit cap. It's going to be based on your earnings and UC only takes earnings into account when they are received.
    Thank you for this. I guess that's the key info I need. So when I get paid on 28 February, that will be accounted for in the assessment period for 27 February - 26 March.

    I think it's quite unfair but it is what it is.

     So I will need to invoice earlier for my main self employed role that I will continue to do alongside my empires role, so that I can get paid more in the February assessment period. Will see if I can do a few more extra hours in that capacity also in February and I will delay a couple of invoices again to fall into February. It's not ideal and it's messy but I'm good at keeping track so if it's a simple case of only looking at actual earnings received in the bank to calculate my payment then it's the only thing I can do to not have a real struggle in the next month or so.

    Thank you for this info. 
  • What are your caring responsibilities?  If you get the carer element you should be exempt from the cap.
    I probably used the term more loosely than I should have as I am aware that caring has a specific meaning in the context of Benefits- sorry for this. I'm not eligible for any extra payments in this regard. I used the term to refer to me being a single parent with 3 children aged 8-12, and having experienced the loss of my husband 15 months ago when he passed away. Each of my children have 121 bereavement therapy in the local hospital and I spend about 7.5 hours in total each week taking them there, waiting there and bringing them home/back to school. 
  • Thanks for your warm wishes. That is far more than the Job Centre have given me. I was very surprised to not get so much as anything close to a 'congratulations' when I informed them I had got a job. I'm tough enough to not care, but it was harsh of them in my opinion....

    I do agree

    Anyway, I can ask my sister to loan me some money. If they apply the Benefits Cap for my payment on 2 March, then that combined with my earnings will just about cover my rent and bills but maybe not food. So I'll need to borrow some money. But it seems unfair if they apply the Benefits Cap given that I would have been working almost the whole of the assessment period.

    Could you get a Budgeting Advance as getting a job should cover a reason
    Unless they've earned more than £2,600 in the past 6 months. (£3,600 for couples) https://www.gov.uk/universal-credit/other-financial-support


    Why I used could, as I don't know how much OP has earned.
    OP  knows about it so OP can check if  qualifies.
    Since September I have earned around £700 per month so I haven't done the calculations but it would be above £2600 over 6 months therefore not eligible for this. I will have to ask family for a loan if I can't get my invoices to work as I have mentioned above. 
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