Staying Within the UC System When Not Eligible For Any Benefit

UKSBD

My daughter is currently classed as LCW

She works part time and receives a small amount of UC

From next month she will be working an extra day which means her UC payments will probably be zero.

It's not guaranteed that the extra day will be permanent, so can she stay within the UC system even though her payments will be zero, so she doesn't have the hassle of reapplying if her hours are reduced again?

Note: She still lives with us so doesn't claim housing allowance or anything else

Rubyroobs

I believe the claim should stay open even if she had up to six months of zero payments. If it did close she can do a rapid reclaim within six months using the same log in details .

poppy12345

As she has LCW and doesn't claim for help with any rent then she will have the work allowance, which has increased now because of the 10.1% benefits increases this month. This means she can receive £631/month earnings before any deductions apply.

Dont forget also that other elements have also increased so her standard allowance will increase to £292.11 (inder 25) The first increases will apply to those with assessment periods that start from 10th April, with first increase being 16th May. Some will need to wait until their June payment before seeing any increase.

UKSBD

poppy12345 said:

As she has LCW and doesn't claim for help with any rent then she will have the work allowance, which has increased now because of the 10.1% benefits increases this month. This means she can receive £631/month earnings before any deductions apply.

Dont forget also that other elements have also increased so her standard allowance will increase to £292.11 (inder 25) The first increases will apply to those with assessment periods that start from 10th April, with first increase being 16th May. Some will need to wait until their June payment before seeing any increase.

She will be earning approx £540 a month above the work allowance so assumed it will be zero

Is the taper rate still 55% ?

Is the calculation  292.11 - (540x55%)  

£292.11 - £297 = £0

Edit to add - She was working 19 1/2 hours a week - From May will be earning 26 hours a week (just above min wage)

poppy12345

Yes, it's still 55%. With those earnings, you are correct her UC will reduce to zero.

tifo

poppy12345 said:

the work allowance, which has increased now because of the 10.1% benefits increases this month. This means she can receive £631/month earnings before any deductions apply.

Has the work allowance also increased? I ask because this month (few days ago) they've still applied £573 (couple) to our earnings and deducted remainder at 55p per £1.

Found it. Yes, it's increasing to £631 so will prob do so in my next assessment. That means a few more pounds back from the increased AET.

NedS

tifo said:

poppy12345 said:

the work allowance, which has increased now because of the 10.1% benefits increases this month. This means she can receive £631/month earnings before any deductions apply.

Has the work allowance also increased? I ask because this month (few days ago) they've still applied £573 (couple) to our earnings and deducted remainder at 55p per £1.

The work allowance will increase to £631, but only for APs starting on or after 10th April - so that's the next AP

The earnings taper remains the same at 55p in the pound.