DRO Approved - Pay rise and Universal Credit (joint)

red_orchid

Hi there,

I recently received confirmation of my DRO. It was very stressful, but now I have a moratorium period ahead of me. I have two questions in this regard.

1. As every year, my salary will increase in April, by around £1,500. After deductions, this translates into an additional £70-£80 per month. I am already receiving emails about higher bills, so I will hardly feel the difference. Do I have to declare this change to the OR?
2. My partner and I are expecting a baby in May. When completing the DRO budget, our joint income was taken into account. She will soon be on SMP, which is around £180 per week, which is about half of her current earnings. If we apply for Universal Credit (for the first time), will this affect my DRO? If so, do I need to report this change? I have not included any expenses for the baby in our budget.

fatbelly

When the new amounts come in, do a calculation. It's probably going to be June before you can do that

If your surplus is over £75 you are supposed to let them know

red_orchid

Thank you for your response @fatbelly.

According to preliminary calculations, it does not appear that our joint budget will increase, and the costs for a child in the first year range from £6,000 to £11,000. (According to moneyhelper.org)

I want to make sure that I am doing everything correctly with regard to DRO (overthinking). I will definitely have records of my expenses, but I am wondering if, for example, I need to call them after I get a pay rise or if we will be granted Universal Credit.

fatbelly

The official guidance says that you do not normally need to contact the IS during a DRO.

They do say that you should contact them if you get a large change and they give an example of a large inheritance.

They say that if you have an increase in income it is often offset by more expenses and before talking to them about this you should run it past a debt adviser.

They really don't want to have to spend time on intricate calculations.

That is why I suggested leaving it till all the changes are in place, then doing your sums and if still under £75 surplus just continue with the DRO.

sourcrates

Try not to overthink things here, income is expected to rise, and costs will always follow.

The key figure that matters is the £75 surplus, do you still meet that or not?

Never under budget, always allow a good margin for costs.

You only need report if you exceed the above figure, ideally you don`t ever want to contact the IS again.