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UC payments increase if wages go down

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So cna someone explain to me what they mean by this as I earn different amounts each month at the moment .

If you stop working or your wages go down, your payment will increase 

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  • HillStreetBlues
    HillStreetBlues Posts: 6,140 Forumite
    1,000 Posts Third Anniversary Homepage Hero Photogenic
    k2020 said:
    So cna someone explain to me what they mean by this as I earn different amounts each month at the moment .

    If you stop working or your wages go down, your payment will increase 
    With UC there is a deduction depending on how much you earn, the more you earn the bigger the deduction until there is no entitlement to UC.
    Your base rate remains the same but the less deductions the more your UC award (payment) will be for the assessment period.
    Let's Be Careful Out There
  • peteuk
    peteuk Posts: 2,000 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 27 January at 12:24PM
    The reduction of your UC is 55p for every pound you earn so for every £10.00 you earn they reduce your UC by £5.50.  So if in Jan you earn £10.00 less than December then in that UC you’ll receive £5.50 more. 

    Base rate £100 - wage £20 = Reduction of £11.00 so Payment of £89.00

    Next month 

    Base rate £100 - wage £10 =Reduction of £5.50 so payment is £94.50
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