Universal Credit Earnings Taper

Hello,
Hopefully someone could help with their experience on the following interesting conundrum as I seem to be getting conflicting advice .
Currently claiming UC and receiving £880 /m (317 JSA + £563HB), single , outside London with no working allowance.

I have applied for a couple of temporary roles (fingers crossed) that are both for 4wks and will fall in line with the dates for earning evaluation. I am aware that the earnings taper means I would retain 37% and benefits would be reduced by 63% (no issue) .

However, one role is paying me £840 and the other £960. On the first , I believe I would retain approx £310 (37%) and my UC would be reduced by c £562 (63%).

So I have 2 questions if I may :-
1. theoretically as the earnings in the period for the 2nd role (£960) are greater than my £880 payment under UC, would I receive £0 for the period ?
So actually nothing retained v the £310 retained earnings for the lower paid job? Is it possible to retain any earnings if total income is more than the usual monthly award ? I would be significantly 'worse off' by earning a little more

2. Despite being only a temporary job for a month, would the second scenario also mean that my earnings have exceeded my award under UC and would as a consequence end my claim (I.e. I would have to go through the whole process again in Jan to re-register ?)

Apologies for the length, but something doesn't seem right to me and maybe I am missing something - feel free to highlight !
I guess would also apply to those taking on temporary Christmas jobs and finding the same predicament.

Anyway, thanks
R

Comments

  • Alice_Holt
    Alice_Holt Posts: 5,921
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    edited 17 November 2018 at 11:59AM
    Put the numbers into a few benefit calculators to double check.

    It doesn't appear you have accounted for the work allowance which will now apply.
    Can't understand your 37% and 63% numbers - are they supposed to add to the earnings in first role of £840? They total £872 not £840 nor indeed £960
    You need to look at earnings plus UC for a complete picture.
    I think when you an get accurate calculation you won't be ' significantly worse off' by earning a little more'
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • huckster
    huckster Posts: 4,789
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    edited 17 November 2018 at 12:11PM
    Edit

    I think it would be easier to use a benefits calculator, as suggested. Not sure with my sore head that my last suggested method works :)
    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: 4,789
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    This is what I was thinking of

    Nil UC threshold
    This is the amount of total earned income above which there would be no entitlement to UC. It is the amount of income needed to reduce the UC award to Nil. It is calculated as follows:
    1. Find the maximum amount of the UC award (add up all of the relevant elements)
    2. Deduct any unearned income (if relevant)
    3. Divide the figure in step 2 by 63 and multiply the result by 100
    4. Add the amount of any applicable work allowance (this may be Nil)
    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.
  • Thanks for the replies both - appreciated .
    With £0 work allowance (no children , single) it's a straight calculation based on a 67% reduction . Based on a reduction of £444 on previous earnings of £688 I will extrapolate from there to find the sweet spot. I don't really want to go beyond and have to go through the inevitable reapplication hassle for the sake of a 4wk post .
  • bigbill
    bigbill Posts: 928
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    You do not re-apply for UC if your earnings nil the award your still on it for 6 months, this helps if your earnings go up or down or do seasonal or zero hours work.
  • rjw273
    rjw273 Posts: 36 Forumite
    I found the best online benefit calculator to be http://policyinpractice.co.uk/ . It also breaks down the calculations on the Results page so you can see how taper rates and work allowances affect you.

    If you're on UC, your overall income ( UC + earnings) should always go up if you take a better paid job. You should keep 37p for every extra pound you earn which is better than the old benefits system.
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