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How is universal credit effected by 18hr a week job

eggyf7
eggyf7 Posts: 55 Forumite
in Benefits & tax credits
Hi currently in the not capable for work bracket but feel with doc could maybe manage part time. Recently applied for Tesco which is 18hrs and around £8.50 an hour. Can anyone explain what happens working above the permitted 16hrs? Read about 63p being deducted from every £1 but not sure?

Comments

  • huckster
    huckster Posts: 5,551 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    There is no set hours amount affecting a UC claim. If you work, then they deduct 63p from each £1 earned. If you have limited capability for work on your claim, there is also a work allowance, so you get to keep more of your earnings, than a straightforward 63p per £1 deduction.

    You need to advise UC when you start working. If you have an online full service claim, you can report change of circumstance, work and earnings, through your online claim. If the UC account is not one you log into online, then give UC a call.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • amyjaj
    amyjaj Posts: 106 Forumite
    As you are getting the Limited Capability for work element, you will get a work allowance of £198. This mean you can earn £198 before deductions are taken from your UC. I believe Tesco employees are paid 4 weekly. So £8.50 x 18=£153 x 4= £612-£198=414 x 63= £260. So £260 will be deducted from you UC. Also because you are paid 4 weekly there will be 1 month where you are paid twice in one assessment period by Tesco and you will not get UC that month.
  • eggyf7
    eggyf7 Posts: 55 Forumite
    amyjaj wrote: »
    As you are getting the Limited Capability for work element, you will get a work allowance of £198. This mean you can earn £198 before deductions are taken from your UC. I believe Tesco employees are paid 4 weekly. So £8.50 x 18=£153 x 4= £612-£198=414 x 63= £260. So £260 will be deducted from you UC. Also because you are paid 4 weekly there will be 1 month where you are paid twice in one assessment period by Tesco and you will not get UC that month.

    Thanks very much for that clarification. As an aside would I be able to be topped up with a working tax credit element? Would I be eligible for any sort of housing benefit or be liable for full rent? I don’t know how any of this works clearly
  • huckster
    huckster Posts: 5,551 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Working tax does not exist. Under UC, it is a Work Allowance as the other person explained in their calculation.

    If the housing is permanent and not temporary or sheltered housing through the council, then yes you can add housing rent costs to the UC claim.

    Suggest you call UC to have a chat about this.They will explain housing to you, so you know what to do.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • amyjaj
    amyjaj Posts: 106 Forumite
    edited 18 July 2018 at 6:20AM
    You will still get your housing element. If you take your overall award, housing element, standard allowance and Limited Capability element and add together, then minus the housing element and the £260 deduction, whats left will be your personal allowance, this replacing Working tax credits. DWP have messed mine up and owe me £1188 so far!
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