Universal credit overstating take home

Couldbeanythin

Hi,  just wondered if this is correct.

I noticed on my UC credit statement that the reported take home payment from my employer was higher than my actual payslip take-home figure. I looked at this and the difference is the amount the student loan company took for repayment in my wage slip.

When I queried this they came back with this response:-

We found that you had third party deductions from your wage which are not allowable deductions. Therefore, we would take the full amount of earnings into account for the Assessment Period. RTI has calculated the Universal Credit payment correctly and no adjustments should be made.

Is that correct? I'm still waiting for further clarification. So essentially student loan repayments that I have no control over are not an allowable deduction?

kaMelo

Sadly not. UC is calculated on net pay after income tax, NI and pension contributions only. Student loan repayments are not an allowable deduction.

Alice_Holt

Yes unfortunately it's correct

https://www.whatdotheyknow.com/request/439851/response/1071946/attach/2/FoI 4509 reply.pdf?cookie_passthrough=1

Couldbeanythin

Thanks for confirming, was unaware of that.

Newcad

If UC didn't include it as being your income then UC would effectively be paying off your student loan for you, and paying off loans is not what benefits are supposed to be for.

If it wasn't being deducted from your wages then you'd get the money (affecting UC) and have to pay it to the student loan yourself, making things exactly the same overall as they curently are.