Universal credit and apprenticeships

ikcdab · 9 September 2017 at 9:08AM

I am helping a 25yo young man with employment. He is currently on PIP and ESA and living at home.
he intends to get his own flat and to take an apprenticeship which pays £131 per week for the first year.
The question: Is universal credit available to top up his apprenticeship earnings? The benefits calculators seem to suggest that there is a top up but I know there are obscure rules and I want to make sure that there is no 'special' rule around apprenticeships.
grateful for any advice that can be given.

pmlindyloo · 9 September 2017 at 10:17AM

The old benefits that he will be eligible for are housing benefit, working tax credits and council tax reduction.

If he remains on the old legacy benefit (ESA) then things to note would be that if he is receiving the standard living component of ESA then he would be eligible for the Severe Disability Premium with his ESA (£60 + a week) if he will be living alone (or treated as such) and no one claims Carer's Allowance for him. Plus he would be eligible for the one bed rate of local housing allowance rather than the shared accommodation rate.

Working tax credits would also be available if he met the conditions as regards apprenticeships.

Read here:

http://www.litrg.org.uk/tax-guides/disabled-people-and-carers/apprenticeships

It is extremely important that he finds out what kind of Universal Credit service is operating in his area. If it is a full service area then beginning to claim HB would mean he has to move to Universal Credit. (natural migration) On Universal Credit there is no Severe Disability Premium and he would only be entitled to the shared accommodation rate of local housing allowance. He would be eligible for extra money in place of working tax credit.

As you can see he would be far better off on the old legacy benefits (ESA ) and making a separate claim for HB, CTR and WTC.

It is complicated so before he makes any decisions he should check up about Universal Credit in his area. CAB would be a good place to start.

theronstar · 9 September 2017 at 5:31PM

A post code check on the Universal Credit website will tell him about availability in his area

ikcdab · 9 September 2017 at 7:48PM

Thank you. We are in a full service area so when he starts to rent he'll need to claim UC.
Are you sure about the LHA rules under UC?
When I spoke with the council they seemed to suggest that the shared accommodation rate dispensation when on PIP still applied even though we were in a UC area. However, I'll need to check again.

Universal credit and apprenticeships

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