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Original poster

Only £36 per month better off with potential new job. No incentive to move off UC

108 replies

BonnyEm · 22/06/2021 21:45

I went for a job interview today. It went well. Hopefully I'll know next week if I've been successful or not.
My hours at my current job are 5 per week. Potential new job 16 per week. We currently receive universal credit.
I sat with dh earlier this evening to work out our finances and taking on the new job would only benefit us by £36 a month.
I would still take the job if offered and try to progress up the ladder or to work more hours if offered.
However, I was disheartened that the increase would be so little. You can see how benefits trap people. There's little point to working more hours than I am now, in my case financially.

OP posts:
Maddermax · 22/06/2021 21:49

I think the difference is with your old job you need benefits and with your new job you don't so you are much better off. You are well enough off to not need help. You may only have an acta £36 a week but you will no longer require assistance. That's a big improvement.

PurplePansy05 · 22/06/2021 21:49

What about your pension? Surely this and the fact you can progress up the ladder or move to a better paid job soon after this one are good incentives? I agree jobs shoul pay way better than benefits too, but that's the whole other debate. I'd focus on the positive opportunities, OP. Congratulations on your new job Flowers

UhtredRagnarson · 22/06/2021 21:52

OP If you can afford to put all the extra income you’ll make from the new job into your pension (this is allowed under UC) you will still be on the same income from UC as you are currently but your pension will be much better off. Is that an option?

Interested in this thread?

Then you might like threads about this subject:

Benefits
SilverGlassHare · 22/06/2021 21:52

Self-respect? Mental health benefits? The risk of relying on benefits when the next government might cut them drastically?

UhtredRagnarson · 22/06/2021 21:54

There is a lovely and very smart MNer who knows about this stuff and has advised folk before but I’ll be damned if I can remember her name! Maybe something to do with ice cream? Confused

Original poster
BonnyEm · 22/06/2021 21:56

It's £36 per month, not per week.
We'd still be entitled to UC but less than what we are entitled to now.

@PurplePansy05 I already pay into a pension, that will remain unchanged. Progression is the only benefit

OP posts:
UhtredRagnarson · 22/06/2021 21:57

OP do you receive housing benefit as part of your UC claim?

Readeatcake · 22/06/2021 21:58

Benefits are never going to be a perfect solution. You were given assistance to bring you up to a decent wage. Now that you have increased your hours your help decreases in line with your new wage. But you gain more things like a pension and helping to put back into the system for others.

When my brother and his partner had their first baby they earned just above the threshold for financial help. But those who were just under or significantly under gained more help that brought them over my brother's and partners earnings. Is that fair? No. But again they were putting into pensions etc

daseychain · 22/06/2021 21:58

It's not about being £36 better off, it's about earning your money, a wage instead of benefits. Can you really not see that?

Original poster
BonnyEm · 22/06/2021 21:58

@UhtredRagnarson

OP do you receive housing benefit as part of your UC claim?
No, as we own (mortgage) our house
OP posts:
UhtredRagnarson · 22/06/2021 22:00

If you receive HB with your UC claim then £292 per month of your wage is disregarded for the calculation. So anything you earn over £292 shove it into your pension and UC will only calculate based on the £292 and there will be no deduction for your income.

If you don’t receive HB then the disregard is £500 and something. Everything you earn over that- shove into pension. No deduction of UC for income.

That’s if you can afford to.

Do the sums and see what you can manage on.

UhtredRagnarson · 22/06/2021 22:00

Use the entitled to website to mess around with the numbers and see what works out best for you.

SleepingStandingUp · 22/06/2021 22:01

It is hard op. DH has had a pay-rise and my Tax Credits have dropped by more than his rise so we're worse off. Long term though,when I'm back in work and we get no assistance that increase will be ours though. And if he goes for other jobs he's got his current wage as a bar. Hopefully the next pay-rise won't hurt as much whereas being in tax credits, we're at the mercy of the Govt!

Original poster
BonnyEm · 22/06/2021 22:02

@daseychain

It's not about being £36 better off, it's about earning your money, a wage instead of benefits. Can you really not see that?
Of course I can see that and I will take the job if offered as I said in my OP. It's just disappointing when we're trying to clear our debt, take on more hours and it isn't going to go up as much as I'd hoped.
OP posts:
accentdusoleil · 22/06/2021 22:03

You will experience to add to your to CV which May lead to better paid or more enjoyable job

Mountaingoatling · 22/06/2021 22:03

It must feel disheartening but it is so often about the long game with a career. See it as a small step...in a few years this may be the turning point that launched you on to much greater things. Good luck and congratulations.

SleepingStandingUp · 22/06/2021 22:03

@daseychain

It's not about being £36 better off, it's about earning your money, a wage instead of benefits. Can you really not see that?
But it's also about keeping a roof over your head. If op adds on petrol and childcare at £50 a month she might not be able to afford to work if they're already tight for money.
NeverFull · 22/06/2021 22:03

The value of having a job is so much more than the extra cash though.

LizzieSiddal · 22/06/2021 22:04

I know it’s not a lot but you need to look at it more long term,

In a few years time, if you take the job, you may be much better off than £36 a month. Plus you’ll have learnt and developments other skills.

If you don’t take the job you will be in the same financial situation as you are now as well as having no further work skills.

Iliketeaagain · 22/06/2021 22:04

The thing is what the government gives, they can also take away. Benefits are a safety net, so if you can work more hours, even if it's not much more money, you should be working if you are able to.

Being on benefits makes you vulnerable to policy change and beholden to whatever the government decides they should be, wrong calculations etc etc.

Plus the benefits of mental health, well-being, role modelling behaviour to your child(ren) that you should work for money when you are able to rather than relying on a benefits system.

valadon68 · 22/06/2021 22:04

You will increase your earning potential and gain experience though OP, and in times of need that translates into independence, which is so valuable. It's an investment which translates into more than just hard cash. This is a stepping stone, so good luck and I hope it all works out Brew

UhtredRagnarson · 22/06/2021 22:05

Yes it sticks in the gullet that doing an extra 11 hours work a week only earns you the princely sum of £9!! 82p an hour. Yay! Hmm

How about employers pay enough that people are getting a living wage for every hour they work??

valadon68 · 22/06/2021 22:05

X post with about 3 PP!

DesdemonaDryEyes · 22/06/2021 22:08

5 hours a week can hardly be classed as a job?

Nohomemadecandles · 22/06/2021 22:08

I agree, it's rubbish. But it's a stepping stone out.

Until a fairer system arrives, we rely on people like you to do it. Many won't. And we wonder why apathy reigns

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