AET threshold

bec1993

Just after a bit of advice on what to do next. I currently work 13.17 hours a week at £11.00 per hour, I am paid 4 weekly so 13 times a month. 

13.17 x £11 144.86 p/w
£144.86 x 4 579.48 p/m
therefore putting me under the AET threshold and now having to visit the job centre and have a work coach etc about getting more hours, I have tried but struggle as I work in retail & have child care to fit around the job. I may be able to pick up one extra hour a week.
I queried UC on the AET as they state 15 hours p/w at NLW is £617 and that didn’t make mathematical sense to me but they’ve said it is based monthly and not 4 weekly so my question is if my wages were split into 12 months I would be above the threshold and why am I being penalised just because my pay cycle is 4 weekly and not monthly, working it out that way would be 
13.17 x £11 144.86 p/w
£144.86 x 52 7532.72 per year
7532.72 / 12 627 p/m
It just feels like a computer says no system with no thought on how the actual world works! I hope it makes as much sense as possible! I have tried speaking to UC about this and waiting on a response. Thanks.

bec1993

*13 times a year not a month!

kaMelo

I think your problem may be that being paid four weekly there will only be one month in a year where you earn over the AET, the month in which you receive two payments.

As far as I'm aware that's just how UC works. Is there any way to change your pay period to monthly?

calcotti

This is much a ‘computer says no’ issue. Has been a known issue for a long time but the system is set up to be able to average earnings so you will be treated as below the AET except for the one month of the year in which you receive two earnings payments.

DWP were challenged in court regarding a similar issue that arising in respect of the application of the benefit cap which affects those paid four weekly even though they would be exempt if paid monthly. Unfortunately the challenge failed and it was found lawful for DWP to look only at payments received within the month (please this is a key feature of the UC design).
https://cpag.org.uk/welfare-rights/legal-test-cases/current-test-cases/benefit-cap-and-those-paid-4-weekly

https://askcpag.org.uk/content/207484/uc-escaping-the-benefit-cap-and-pay-cycles

(Of course that this is how it works and is lawful doesn’t mean that it makes sense.)

bec1993

kaMelo said:

I think your problem may be that being paid four weekly there will only be one month in a year where you earn over the AET, the month in which you receive two payments.

As far as I'm aware that's just how UC works. Is there any way to change your pay period to monthly?

Unfortunately not, I suppose I’m just going to have to hope I get a sympathetic work coach, just a frustrating system which doesn’t appear to help the job centre staff or people in my position!

bec1993

@calcotti, really interesting reading, I imagine now the threshold has risen again a lot of people are going to be in the same position but looks like we’ll just have to put up with it for now however backwards it may seem!