Universal Credit and the NHS Pay Offer

CAA
CAA Posts: 10 Forumite
Part of the Furniture First Post Combo Breaker
edited 11 May 2023 at 3:25PM in Benefits & tax credits
My partner and I claim Universal Credit, I work full time, my partner currently isn't working. I work in the NHS and you may seen the improved pay offer accepted recently, this includes 2 non-consolidated awards which will be paid in June, totalling roughly £2000 in my case. We have the option to take this in a lump sum or in up to 10 instalments.

My question is this: This extra £2000, taken in a lump sum will obviously impact our Universal Credit payment the month after. We will likely receive nothing. The next months following our Universal Credit payment should return to normal. But are we likely to be overpaid Universal Credit over the course of the year, because my yearly wage while be significantly higher but our Universal Credit will remain the same, apart that one month.
I suppose what I am asking is, the the end of the financial year, is there a yearly assessment of how my wage compares to the amount of Universal Credit we have received?

Thank you.

Comments

  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    CAA said:
    ..But are we likely to be overpaid Universal Credit over the course of the year, because my yearly wage while be significantly higher but our Universal Credit will remain the same, apart that one month...
    UC is calculated on a monthly basis so your total annual income doesn't matter.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • peteuk
    peteuk Posts: 1,920 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    CAA said:
    My question is this: This extra £2000, taken in a lump sum will obviously impact our Universal Credit payment the month after. We will likely receive nothing. 
    UC is used as a top up for low paid workers, so yes youll get nothing for the month you get your bonus. My advice is take the £2K pay yourself your normal UC payment and then stick the rest in savings for the rainy-day or pay off debt. 

    When your wage returns to normal (with the 5% pay increase) your UC will return but may be less because of your pay rise. Because UC is calculated monthly then, as already mentioned, there is no risk of an overpayment in the year. 
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
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  • CAA
    CAA Posts: 10 Forumite
    Part of the Furniture First Post Combo Breaker
    edited 11 May 2023 at 4:56PM
    Ok thank you very much.

    Looks like when UC reduces to zero, the claim gets stopped and I'll have to reapply.
    Universal Credit: How your earnings affect your payments - GOV.UK (www.gov.uk)

    Edit: Scratch that, I didnt read it properly, it looks like it will restart automatically.
  • peteuk
    peteuk Posts: 1,920 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Just noticed your edit as I was going to hit the post button...

    But for others - 

    "If it’s been 6 months or less since your last Universal Credit payment, you’ll automatically start getting payments again. If it’s been more than 6 months, you’ll need to reapply for Universal Credit." 
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    CAA said:
    Ok thank you very much.

    Looks like when UC reduces to zero, the claim gets stopped and I'll have to reapply.
    Universal Credit: How your earnings affect your payments - GOV.UK (www.gov.uk)

    Edit: Scratch that, I'd didnt read it properly, it looks like they will restart automatically.
    Originally UC claim would be closed after a month of nil payment the claimant when when needed to make a rapid reclaim (through their UC journal). At the moment claims appear to be left open for six months.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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