Surplus earnings

Intel1982

Hi, sorry just another question regarding UC. I had previously posted, but quick background is that my husband earns £52k basic and gets a one off Christmas bonus payment of £7.5k.

I understand universal credit is calculated every month and that any surplus earnings will be carried on until it's exhausted. From what Ive read it's anything over £300 extra earnings - does this mean our eligibility for universal credit will effectively be wiped out due to this bonus? We pay extra into husband's pension and have two disabled children which is why we would have some entitlement to universal credit. 

Thanks 

peteuk

According to your other thread youve used the bonus to pay your mortgage.

https://forums.moneysavingexpert.com/discussion/6496839/universal-credit#latest

Why open a second thread stating something else?  The answer to this is very easily googled, and has been covered in many areas of this forum, but here’s the simple answer.

If you have more than £6K at the end of your assessment period then you should declare this, this will then reduce the amount of UC you will receive.  The reduction is £4.35 for every £250 over £6K. (So if you have £6200 reduced by £4.35, £6251 reduced by £8.70 etc) 

If you have more than £16K in savings or capital then your entitlement to UC stops. 

Obviously in your previous thread youve suggested you've paid your mortgage with the bonus and this keeps you under the £6K, depending on when you paid this, you may still need to report it eg OH receives it 24 Dec,  assessment period ends 28 Dec and then you make the overpayment on 05 Jan.  Techncally you had over £6K in your account at the end of your assessment period.  

Intel1982

Yes I have used the Christmas 2023 bonus to overpay the mortgage as stated. I'm not on universal credit at the moment so I'm looking for information as to what will happen if I am on universal credit and receive a 2024 Christmas bonus. I am aware that people can see my previous threads!

You haven't actually answered my question, my question was regarding surplus earnings. This is not such an easy subject to google.

Spoonie_Turtle

Assuming the bonus is treated as earnings and not capital:

Surplus earnings apply to earnings £2500 above the point at which earnings make your UC a nil payment.  So I would guess at most this might affect 3 months of your UC, but probably less if you're normally entitled to UC after your husband's ordinary wage.

https://www.entitledto.co.uk/help/universal_credit_surplus_earnings

If they do change the threshold to £300 then obviously it would affect your subsequent UC for longer, but 6 months is the maximum.

Intel1982

Thank you 🙏

housebuyer143

How do you get UC with earnings of £60k?

Spoonie_Turtle

housebuyer143 said:

How do you get UC with earnings of £60k?

They already said - two disabled children.  That makes a huge difference to entitlement.

If you're not sure how UC works I suggest you read this page https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/how-much-youll-get/

peteuk

Intel1982 said:

Yes I have used the Christmas 2023 bonus to overpay the mortgage as stated. I'm not on universal credit at the moment so I'm looking for information as to what will happen if I am on universal credit and receive a 2024 Christmas bonus. I am aware that people can see my previous threads!

You haven't actually answered my question, my question was regarding surplus earnings. This is not such an easy subject to google.

I Missed the question about surplus earning, however i stand by the fact you could have included this on your first thread, no where on the initial question does it mention your talking in the future.

There is a few threads that discuss voluntary pension payments and UC, as you will need discuss this as UC works initially on take home pay and will not in the first instance take into account this payment.  

sheramber

housebuyer143 said:

How do you get UC with earnings of £60k?

The OP did say
I'm not on universal credit at the moment so I'm looking for information as to what will happen if I am on universal credit and receive a 2024 Christmas bonus.

poppy12345

peteuk said:

Intel1982 said:

Yes I have used the Christmas 2023 bonus to overpay the mortgage as stated. I'm not on universal credit at the moment so I'm looking for information as to what will happen if I am on universal credit and receive a 2024 Christmas bonus. I am aware that people can see my previous threads!

You haven't actually answered my question, my question was regarding surplus earnings. This is not such an easy subject to google.

I Missed the question about surplus earning, however i stand by the fact you could have included this on your first thread, no where on the initial question does it mention your talking in the future.

 

In their first thread they did state in the first paragraph that they found out they may qualify for UC. To me that suggested they don't currently claim it so are talking about the future. The also mentioned about using the 7.5k for their mortgage.

"I was just discussing my income and it was suggested we might qualify for universal credit, I've got a couple of questions if anyone could help"?

I do agree that this question could have been asked on their other thread, rather than start another because it does get confusing.

sheramber

from the OP's other thread they  do not currently claim UC but have found out they may be entitled to some.

I did the turn to us calculation and it was giving us an entitlement but I'm not sure whether that's because I entered the additional pension contributions, I'm wondering whether we would be entitled at all without these.

ReportQ

If the OP had stuck to the one thread it would nave been clearer.