Universal credit for couples...

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rjw273
rjw273 Posts: 36 Forumite
edited 20 May 2018 at 6:01PM in Benefits & tax credits
I work full time and earn roughly £1300 per month gross. My wife doesn't work mainly because we would be no better off under the current tax credit system however she is capable of working (ie, not disabled etc). We have 2 children at primary school.

Surprisingly under Universal credit we will be better off so am keen to move onto it but am confused by the claimant commitment side of things. It implies that between us we should be earning about 60hrs X min. wage (35hrs for me and up to 25hrs for her). But I have also read somewhere that as long as you (as a couple) earn above what they call the Administrative Earnings Threshold (AET) then my wife wouldn't HAVE to work.I think the AET is around £600 /month for couples so we are comfortably above that.

So does anyone know for sure is my Wife would HAVE to start work or not? She is more than willing to if required and we know we'd be better off with her working but i just want to know whether she would be required to for us to get UC
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  • huckster
    huckster Posts: 4,823 Forumite
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    If you have used benefits calculators such a Entitledto or Turn2us, then they are pretty accurate, if you entered the correct information.

    How old are the children ? Do they have any disability issues which additional benefits can/are being claimed for ?

    Will you be including housing rent costs in a UC claim ?

    If the combined earnings is not above conditionality earnings threshold as a couple, which relates to hours at national minimum wage, then yes if the kids are over 5 years old, DWP will expect her to look for at least part-time work. If she needs childcare to be paid to help, UC can pay 85% towards the costs. So if as a couple her work hours meant neither of you could provide care, then UC could pay towards registered childminder costs. E.g if the school closed at 3pm and your wife or you would not be able to pick them up until 6pm.
    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.
  • rjw273
    rjw273 Posts: 36 Forumite
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    The kids will be 5 and 9 very soon and there are no disabilities with any of us. We currently get Child benefit, child tax credit, housing benefit and a little bit of working tax credit.

    I've seen the following on a couple of reliable websites which made me ask the question about my wife working...

    "If you are a couple and earning less than your joint earnings threshold but more than £541 (AET) you will be subject to all work related requirements except for looking for work. You will still need to be ready for work and go to work focussed interviews..."

    The way i interperate that is that my wife wouldn't necessarily be required to work for us to get UC.

    Again i just want to say that my wife is more than willing to work and is very capable. We don't have anyone who could look after our kids on a regular basis so childcare would be very tricky... particularly during school holidays if we both have to work.
  • rjw273
    rjw273 Posts: 36 Forumite
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    Another site seems to say something very similar....

    "The work search requirement and work availability requirement must not be imposed where...
    ...the claimant is a member of a couple whose combine weekly earnings are above the AET ..."
  • huckster
    huckster Posts: 4,823 Forumite
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    Yes no problem claiming UC as a couple.

    Some of what you are reading is about in work requirements for those already in work.

    If you earn £1300 net a month gross that is about national minimum wage after tax. As a couple, if your wife is not working with children over 3 years of age, then as a couple you are not earning above conditionality earnings threshold. E.g 2 people both earning national minimum wage. So there would be a requirement for your wife to look for work. The Job Centre Work Coach would obviously look at caring responsibilities for children, as to what work is available to suit school hours etc. It would be a light touch approach.

    The whole approach of Government policy with Universal Credit, is that single people or couples earning less than minimum wage, is to find work, find more work or better paid work, so that earnings exceed national minimum wage, so no benefit money is payable.
    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.
  • huckster
    huckster Posts: 4,823 Forumite
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    https://www.entitledto.co.uk/help/Claimant-commitment-Universal-Credit
    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.
  • huckster
    huckster Posts: 4,823 Forumite
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    For further information regarding light touch

    https://www.whatdotheyknow.com/request/301588/response/743734/attach/3/FOI%204794%20part%201.pdf
    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.
  • rjw273
    rjw273 Posts: 36 Forumite
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    Thanks for all the info and advice.

    With both kids at primary school from 9am to 3pm it doesn't leave a lot of available time for her to work. Also would they take into account the 12 or so weeks each year that they're not at school or the chance they could be off sick. Everything i read about it seems a bit vague.

    Are there any examples similar to our situation that you could show me just to give us an idea of what our CET would be?

    Its a shame UC has got so much negative press. Yes there have been some teething problems but the principles behind it are spot on and it would benefit us quite a bit .
  • Ineededaname
    Ineededaname Posts: 148 Forumite
    edited 21 May 2018 at 8:04PM
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    Hi,
    If you are a couple and earning less than your joint earnings threshold but more than £541 (AET) you will be subject to all work related requirements except for looking for work. You will still need to be ready for work and go to work focussed interviews...
    The work search requirement and work availability requirement must not be imposed where...
    ...the claimant is a member of a couple whose combine weekly earnings are above the AET ...

    This is essentially correct. Huckster is wrong on this one.

    There are two earnings thresholds - the CET and AET. The CET is essentially minimum wage multiplied by your expected hours of work (35 as standard). With a youngest child aged 5 the standard hours for the lead carer is 25. I think the household CET is just these figures combined but I may be wrong on this.

    Anyway - as someone mentioned previously the current household AET is £541. As you earn more than that this would move your wife into the Light touch regime. People in Light Touch CAN be mandated to attend jobcentre interviews and are 'expected' to do everything they can to earn more themselves. In reality however, they do not have a work coach and do not attend the jobcentre. They are essentially left alone - although this could of course change in the future.

    It's quite common for couples to claim in a similar situation to yours. You absolutely should make the claim. You would actually be better off if your wife could find work - just not by loads. Remember you also need to consider the future - if your wife is out of work for years she will find it more difficult to be in a well paid jobs when the children are older. Best case scenario is she finds something part time that fits in with the school hours. If you weren't aware however you could also look into reclaiming childcare costs. If childcare would be needed for your wife to work you should be able to claim 85% of it back. This can actually be done through Universal Credit, although if you do earn too much together the claim would eventually close.
  • atlantis187
    atlantis187 Posts: 1,444 Forumite
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    stay on tax credits mate. you will lose out in the long run on universal credit. Do not trust this government remember UC are designed to take money of people not give people more money.

    I would be very careful about voluntarily opting to go onto UC.
    If I was you I would leave it till push comes to shove.
  • huckster
    huckster Posts: 4,823 Forumite
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    I have always found 'light touch' a bit contradictory. Government will encourage those earning below conditional earnings threshold to look for work or better paid work, but in the couple situation, where one person is earning about national minimum wage, the other part of the couple is treated as light touch, with work search being voluntary.

    I should imagine that any Government trying to steer people off benefits will review this light touch treatment. The current light touch approach must be confusing. On the one hand people are told they should be looking to work and then there is this a voluntary work search requirement. This may be because politically there is a dilemma about parents working and not being around for their children, plus the issues for employers.
    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.
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