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UC salary threshold is £2500 pmc

194 replies

Reallyxx · 21/04/2024 19:18

On a separate thread, I was asked to google this. So, I have.

Quite many people earn £2000-£2500 pcm that they should be able to live on. So why are there UC benefits for that group?

So more than half of the population is on UC?? I am aware gov has driven wages down over the years, but it seems the net result is of 'more' people being on benefits.

Anyway, why not just 'not tax' these groups? As it seems like people pay 'some tax from their income that is £2500 net' whilst being entitled to 'benefits'.

OP posts:
Reallyxx · 21/04/2024 23:29

ButterflyKu · 21/04/2024 23:16

OP I’ll be honest, I don’t think you even know what it is that you’re trying to say. What’s the point of the thread? Are you trying to understand what benefits a working person can get?

Let’s say I earned £2500 a month (I don’t but I’m using your example). My monthly entitlement to UC is £3133 before any deductions. Once my wage of £2500 has been taken into consideration, I’d still receive £1967 via UC. That means I’d have £2500 via my pay and £1967 via UC which is a total of £4467.

As you can see, it’s ALWAYS in people’s favour to work as you’ll have more money that way. Depending on the elements of UC that someone has, will depend on how much they’re entitled too before deductions. My elements include private rent, childcare costs, childcare element, single person element, two disabled children element and a carer element.

A lot of people won’t get anywhere near as much UC as this hence why it doesn’t really make sense trying to judge the benefits system overall. It really depends on the person’s circumstances

Thank you. You have explained this very well.

OP posts:
ButterflyKu · 21/04/2024 23:16

Reallyxx · 21/04/2024 22:59

So, the maximum someone who works 16 hours and has some kids can get is £1600? SO confusing>

Yet they say you can earn £2900 and still get UC. Would that be around £400 UC since the person works and loses 0.49 pence as pp said per an amount they earn over £2500?

OP I’ll be honest, I don’t think you even know what it is that you’re trying to say. What’s the point of the thread? Are you trying to understand what benefits a working person can get?

Let’s say I earned £2500 a month (I don’t but I’m using your example). My monthly entitlement to UC is £3133 before any deductions. Once my wage of £2500 has been taken into consideration, I’d still receive £1967 via UC. That means I’d have £2500 via my pay and £1967 via UC which is a total of £4467.

As you can see, it’s ALWAYS in people’s favour to work as you’ll have more money that way. Depending on the elements of UC that someone has, will depend on how much they’re entitled too before deductions. My elements include private rent, childcare costs, childcare element, single person element, two disabled children element and a carer element.

A lot of people won’t get anywhere near as much UC as this hence why it doesn’t really make sense trying to judge the benefits system overall. It really depends on the person’s circumstances

dimllaishebiaith · 21/04/2024 23:10

Reallyxx · 21/04/2024 23:04

Missed the point entirely. Or are you also saying I should educate myself what benefits pp are entitled to at the same time I am holding down a job that pays millions in taxes so that all those on benefits (including those who shouldn't be on benefits mind) get their share? I see.

You have a job where you pay millions in taxes? Really, that does suprise me

Nope I didnt tell you to educate yourself. Im not sure you see anything Ive said tbh.

Why are you now moaning about people getting benefits they are not entitled to?

What is the issue? People on too much money get benefits? Single people dont get as much as parents? People dont moan about single parents any more? People on 16 hours getting money? Benefit fraud?

Or do you just want to whine about people getting benefits because you dont like it, you don't really know what you are talking about but you pay millions in tax so that means it's okay for you to complain about poorer people?

NotAgainWilson · 21/04/2024 23:04

Reallyxx · 21/04/2024 19:25

Helpful explanation. Thank you. I was made to 'google' as if it was all laid out somewhere online.

So if you are single, no health issues and no kids, and you earn £2500 pcm, how much are you entitled to in UC?

Nothing. JSA if you are lucky (I was paid £24 a week so definitely not princely. Although the amount may have gone since I got back into work).

The threshold may be £2500 but you don’t qualify on your salary basis only, you need to be in a precarious situation where it is anticipated, or better said, expected to struggle. Like being a widow living in an expensive city and raising 3 children alone, while working a full time job .

Reallyxx · 21/04/2024 23:04

dimllaishebiaith · 21/04/2024 23:00

It is because many debates on benefits 'conflate so many issues and ram them together'. Never occurred to you?

So because other debates cant follow a clear line of thought you dont need too?

Nope didnt occur to me, I had a higher opinion of a random person making a thread Thanks for correcting me.

Missed the point entirely. Or are you also saying I should educate myself what benefits pp are entitled to at the same time I am holding down a job that pays millions in taxes so that all those on benefits (including those who shouldn't be on benefits mind) get their share? I see.

OP posts:
dimllaishebiaith · 21/04/2024 23:00

Reallyxx · 21/04/2024 22:55

Good observation. It is because many debates on benefits 'conflate so many issues and ram them together'. Never occurred to you?

It is because many debates on benefits 'conflate so many issues and ram them together'. Never occurred to you?

So because other debates cant follow a clear line of thought you dont need too?

Nope didnt occur to me, I had a higher opinion of a random person making a thread Thanks for correcting me.

Reallyxx · 21/04/2024 22:59

Reallyxx · 21/04/2024 22:56

@dimllaishebiaith

16 hours at minimum wage is over £600 per month if you are over 21

Thank you for that explanation.

So, the maximum someone who works 16 hours and has some kids can get is £1600? SO confusing>

Yet they say you can earn £2900 and still get UC. Would that be around £400 UC since the person works and loses 0.49 pence as pp said per an amount they earn over £2500?

OP posts:
2024istheyearforme · 21/04/2024 22:57

honestly this is the main problem, half of the country doesnt even know what people on benefits do and don't get.

BIossomtoes · 21/04/2024 22:57

Anyone here who thinks Starmer is going to rock that boat is kidding themselves.

Why wouldn’t he? There’s no benefit for him in pandering to Tory donors.

Reallyxx · 21/04/2024 22:56

@dimllaishebiaith

16 hours at minimum wage is over £600 per month if you are over 21

Thank you for that explanation.

OP posts:
Reallyxx · 21/04/2024 22:55

dimllaishebiaith · 21/04/2024 22:49

16 hours at minimum wage is over £600 per month if you are over 21

Honestly you are conflating so many issues here and ramming them together

Good observation. It is because many debates on benefits 'conflate so many issues and ram them together'. Never occurred to you?

OP posts:
AlcoholSwab · 21/04/2024 22:54

Happygirl79 · 21/04/2024 19:34

This government backs all rich business owners and therefore allows them to pay employees poor salaries which then are topped up by the taxpayer ( yes.you and me ) via UC.

The system is there to give huge profits to employers and make the taxpayers foot the bill

A system devised by the Blair government and carried on by the current Tory mob.

Anyone here who thinks Starmer is going to rock that boat is kidding themselves.

dimllaishebiaith · 21/04/2024 22:49

Reallyxx · 21/04/2024 22:38

One more question: And the, 'I need to keep my hours at 16 hours per week so not to lose benefits'.

Using the example above. So UC is £1600 and they ENSURE they get a job earning £600 so they don't lose parts of 1600? This has never been explained. Wow!

16 hours at minimum wage is over £600 per month if you are over 21

Honestly you are conflating so many issues here and ramming them together

SplitFountainPen · 21/04/2024 22:48

You've misunderstood. That's relating to if a person's wage varies month to month, and what happens if one month is over 2500 over their earning limit, which will vary depending on circumstances.

snakewillow · 21/04/2024 22:48

What you have quoted is the limit you can earn over the point your payment becomes zero, based on your allowance, in a single assessment period. For example (made up numbers) the elements you are entitled to add up to 1500. You earn 2000 from work over and above your work allowance so you lose 1100 (55p per pound earned) leaving a payment of 400. To get a nil assessment you would need to earn another 727, so 2727 over your work allowance.

What the paragraph quoted means is that you can earn another 2500 on top of that figure before they carry earnings forward into future assessment periods, so could earn 5227 before it affected your universal credit in future assessment periods.

Snugglemonkey · 21/04/2024 22:46

I think that it is very wrong for working people to be reliant on benefits. Both for the tax payers, who should not be subsidising businesses who are paying wages too low to actually live on, and for the recipients, who are doing exactly as we need by working, but are not able to be contributors. They are put in a position of reliance. So wrong.

XenoBitch · 21/04/2024 22:46

Deathbyfluffy · 21/04/2024 20:37

They move to a cheaper area. The Gov shouldn't be paying £1200 a month for someone to live in a specific area when much cheaper places are available within a relatively small radius (most of the time).

If people want to live in nice areas, they need to fund it themselves IMO.

So, people on the "shit" jobs, like cleaners, carers etc.. that live in the centre of London... They should just move to a cheaper area? And spend hours commuting each day.

Or people should move away from their friends, family, and support networks?

PickAChew · 21/04/2024 22:44

Menomeno · 21/04/2024 20:04

Where I am the rate is £525 for a three bed, average rents are about £1200. I just don’t know how people manage.

Similar here. LHAfor 3 bedrooms is about 480. Rents are typically double that. A house across the road was up for £800 and had a steady stream of viewings for 2 days because it was so rare. Others in this postcode and nearby are around 1300.

XenoBitch · 21/04/2024 22:43

Namechange10101010 · 21/04/2024 22:31

Don't forget you only get that rate of you're entitled to a 1 bed. If I understand correctly some people are only entitled to a house share at an even lower rate

That is true. Although, if you are in your 40s/50s, you don't want to be house sharing.

Reallyxx · 21/04/2024 22:38

One more question: And the, 'I need to keep my hours at 16 hours per week so not to lose benefits'.

Using the example above. So UC is £1600 and they ENSURE they get a job earning £600 so they don't lose parts of 1600? This has never been explained. Wow!

OP posts:
Elephantswillnever · 21/04/2024 22:34

milkysmum · 21/04/2024 22:22

Im a single parent. 2 children.I clear £2,318 per month. No maintenance as ex husband refuses to pay and us self employed so bugger all anyone can do about it. Im not entitled to any UC, just child benefit.

I think you’d be entitled to something since UC / allowances went up in April. It’d be less than£100 a month though so don’t know if you’d want to put the time into claiming. I appreciate the obligations are more onerous for self employed people

Namechange10101010 · 21/04/2024 22:31

XenoBitch · 21/04/2024 19:55

I just looked up the LHA for where I live. It is £620 for a 1 bedroom place, yet the average private rent for a 1 bed here is £850.

Don't forget you only get that rate of you're entitled to a 1 bed. If I understand correctly some people are only entitled to a house share at an even lower rate

FacingDivorceButSad · 21/04/2024 22:26

You have misunderstood the earning limit. The earning limit could be £600 or £2500 or any other figure you pluck out of mid air as it's different for different people.

An example of what this means could be a single 20 year old person with no housing gets let's say £300. For every £1 earnt in wages they reduce their UC by 67p. They can earn £446 and their UC will stop so their earning threshold is £446.

Same person but with housing gets let's say £500. They can earn £745 and after that it stops so their earning threshold is £446. If that person suddenly gets a payment of £2500 it will potentially be spread across 5 assessment periods meaning theh get £0 UC

It actually stops people taking one huge payment then claiming for the next x amount of months. Without it someone could do 6 months work get paid a 12k in one lump sum and claim benefits for the 6 months before and from the month after getting paid 12k.

I use these figures at random just to illustrate

Proudtobeanortherner · 21/04/2024 22:25

Reallyxx · 21/04/2024 19:18

On a separate thread, I was asked to google this. So, I have.

Quite many people earn £2000-£2500 pcm that they should be able to live on. So why are there UC benefits for that group?

So more than half of the population is on UC?? I am aware gov has driven wages down over the years, but it seems the net result is of 'more' people being on benefits.

Anyway, why not just 'not tax' these groups? As it seems like people pay 'some tax from their income that is £2500 net' whilst being entitled to 'benefits'.

The government doesn’t drive wages down; employers do because the unions no longer have any teeth. What the government could do is outlaw zero hours contracts, set a realistic living wage and expect adults to take care of their own lives instead of blaming someone else all the time.

milkysmum · 21/04/2024 22:22

Im a single parent. 2 children.I clear £2,318 per month. No maintenance as ex husband refuses to pay and us self employed so bugger all anyone can do about it. Im not entitled to any UC, just child benefit.