Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
kirbykirby · 21/04/2024 21:03

Thebestwaytoscareatory · 21/04/2024 20:24

Yup, I believe the government pays c£20bn a year into the pockets of private landlords.

That's £384m or so per week, but remember, it's putting a roof over asylum seeker's heads at £7m per week that's crippling the country.

Lots of private landlords rent to asylum seekers via Serco (paid for by the taxpayer). It all adds up to an unaffordable welfare bill.

At some point the country is going to run out of taxpayers. It's already over 50% who take out more than they pay in. Simple maths shows the situation is unsustainable.

https://news.sky.com/story/record-number-of-britons-receiving-benefits-that-amount-to-more-than-they-pay-in-tax-study-finds-12793349

Record number of Britons receiving benefits that amount to more than they pay in tax, study finds

Analysis by think tank Civitas shows 83% of all income tax is paid by 40% of British adults. The study's authors say the "net dependency ratio" is the highest on record.

https://news.sky.com/story/record-number-of-britons-receiving-benefits-that-amount-to-more-than-they-pay-in-tax-study-finds-12793349

Menomeno · 21/04/2024 21:00

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.

I’m not talking about me, I’m not on benefits.

If you move to a cheaper area, the LHA rate is reduced so you’d still be in the same position. I live in the North. There aren’t any significantly cheaper areas. Round here is already considered cheap.

LauderSyme · 21/04/2024 21:00

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.

I am not at all surprised unfortunately.

LHA was set at the bottom third of the rental market. But with austerity and continued failure to uprate in line with price increases, it often does not even cover the cheapest properties.

Many people have a shortfall of hundreds of pounds a month even if they qualify for the maximum.

TheFunHasGone · 21/04/2024 20:56

kirbykirby · 21/04/2024 20:52

But people who don't get benefits have to pay rent from their after tax income with no help from welfare. In fact, UC housing element creates a floor for private rents as landlords know the minimum they can charge. So private renters who don't get anything towards their rent have to compete with others who do (and their taxes pay for it!).

Well if they don't get benefits they are earning too much to claim anything so have more income to pay rent

(Many people on UC also pay tax!)

kirbykirby · 21/04/2024 20:52

XenoBitch · 21/04/2024 19:19

A lot of UC goes on housing element, so it goes towards paying rent.

Someone on £2k a month where I live would easily be paying half that on private rent.

But people who don't get benefits have to pay rent from their after tax income with no help from welfare. In fact, UC housing element creates a floor for private rents as landlords know the minimum they can charge. So private renters who don't get anything towards their rent have to compete with others who do (and their taxes pay for it!).

Trez1510 · 21/04/2024 20:46

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.

I seem to recall (perhaps incorrectly?) there were zero limits on housing allowance previously - decades ago.

I distinctly recall a front page story where someone in (literally) a mansion was claiming interest on their mortgage via the benefits system etc.

Obviously, mortgage payments (even interest) are now more or less excluded from benefits. I assume in order to balance that out, the average rent/local LHA rate was created to prevent people living in mansions through choice taking the piss.

Headfirstintothewild · 21/04/2024 20:45

WalkingonWheels · 21/04/2024 19:57

Hmm, this seems strange. My husband earns 2k a month after tax and we have a child. I'm disabled and have been assessed as not fit for work by the DWP, on higher level PIP both elements.

We aren't entitled to a penny of UC. No housing, nothing. The only thing we get is a very slightly reduced council tax bill because I use a wheelchair.

I have to work full time from my bed (I'm mostly bedbound) because we can't survive on one small salary. Despite being deemed unfit for work and so disabled I get maximum PIP.

You need to relook at UC. With the standard allowance, 1 child, LCWRA and carer element you are eligible for UC with a monthly income of £2k. Even if you only had LCW (and therefore no monetary value on the claim) you would still be eligible.

Headfirstintothewild · 21/04/2024 20:44

There isn’t one set income threshold. It depends on the claimant’s circumstances.

The £2500 you mention is related to what is known as surplus earnings, not the UC threshold.

Deathbyfluffy · 21/04/2024 20:37

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.

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.

Latenightreader · 21/04/2024 20:35

I'm a lond parent earning under £2500 a month and I'm not entitled to anything apart from child benefit (which i'm grateful for). We get by.

SpeedyDrama · 21/04/2024 20:33

WalkingonWheels · 21/04/2024 19:57

Hmm, this seems strange. My husband earns 2k a month after tax and we have a child. I'm disabled and have been assessed as not fit for work by the DWP, on higher level PIP both elements.

We aren't entitled to a penny of UC. No housing, nothing. The only thing we get is a very slightly reduced council tax bill because I use a wheelchair.

I have to work full time from my bed (I'm mostly bedbound) because we can't survive on one small salary. Despite being deemed unfit for work and so disabled I get maximum PIP.

Are you sure about that? Have you looked at Turn2Us or similar websites? Because when I was living with my ex, had one child at the time on middle rate DLA and he was on a similar wage, the only thing that lowered it compared to most situations was the mortgaged home rather than being entitled to LHA rates (which is not a complaint!). A good chunk of what we were entitled to in those circumstances was removed for me to claim carers allowance, but UC carers element added some back on.

Trez1510 · 21/04/2024 20:30

I wonder if £350m of that £384m per week is where the Brexit Benefit went? 🙄

Thebestwaytoscareatory · 21/04/2024 20:24

WarningOfGails · 21/04/2024 19:22

And landlords are getting rent in their pockets.

Yup, I believe the government pays c£20bn a year into the pockets of private landlords.

That's £384m or so per week, but remember, it's putting a roof over asylum seeker's heads at £7m per week that's crippling the country.

orangesareorangey · 21/04/2024 20:21

You’ve completely misunderstood what that £2500 is referring to. That amount is the ‘surplus earnings limit’, not the amount that you can earn up to in order to still qualify for UC support.

I, for example, take home closer to £2700pm at the moment and receive around £500pm in UC because I rent and pay over £1000pm for childcare. There are people whose take home pay and UC award will be much higher. It’s all based on individual circumstances, there is no ‘upper limit’.

If you’re going to go away and read something, at least do it properly 🙄

TheGrimSqueakersFlea · 21/04/2024 20:14

Is this research for an article? All the information you need is available online. You could try using the benefits calculator too

BIossomtoes · 21/04/2024 20:13

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.

IClaudine · 21/04/2024 20:11

As was pointed out to you on your deleted thread and this one, a lot of the money goes into the pockets of private landlords.

Willyoujustbequiet · 21/04/2024 20:11

IClaudine · 21/04/2024 20:10

OP you asked MNHQ to delete your previous thread about benefits. Why have you started another one?

Why indeed.

HippeePrincess · 21/04/2024 20:10

Reallyxx · 21/04/2024 19:43

Yes. That was another Q. Do your earnings get added up or are you assessed individually?

Yes it’s household income and we have to make a joint claim as we live together so HMRC report both of our incomes to be taken into account. I then have to report everytime I pay a childcare invoice. Then they pay us wrong every month and I spend all month asking them to correct it.

I was actually better off as a single parent and not working, and as a single parent and studying than I am now in a couple and working a band 5 professional job.

Willyoujustbequiet · 21/04/2024 20:10

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?

Single persons UC if they have a mortgage is less than £400 per month. Nothing above an income of £2500.

You were told this on your thread. It's easy to Google.

IClaudine · 21/04/2024 20:10

OP you asked MNHQ to delete your previous thread about benefits. Why have you started another one?

Elebag · 21/04/2024 20:07

Rents are astronomical in some parts of the country. Lots of people will need help with that. Unless of course, you'd like all the low paid NHS and local government staff to move somewhere else.
UC also goes towards childcare so lone parents can work. My nursery bill for two dc's was more than I earnt.

MikeRafone · 21/04/2024 20:06

Reallyxx · 21/04/2024 19:21

So the net result is that pp on income of £2500 pcm are getting free accommodation on London/ England?

Edited

no that isn't the net result

there is the housing element which varies from district to district and is a set amount - so in my district the amount os set at £600 for a 2 bed house, obviously it will also depend on your age as there are age restrictions on amounts if you are single.

In the next district the housing element is capped at £500 for a two bed house

to be honest you'd be lucky to find a private rental for less than £800 in my district, most are over £1000

Menomeno · 21/04/2024 20:04

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.

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

SevenSeasOfRhye · 21/04/2024 20:01

Reallyxx · 21/04/2024 19:50

I am surprised I haven't heard (single?) parent benefits bashing in many many years. That used to be everyone's subject then.

We are now focused on how those earning over £100K can avoid losing their 'benefits;.

One thing is clear, the benefits and tax systems need a complete overhaul. I would be in support of this £2500 income threshold if single people also received it. Why discriminate against single people?

It's not the benefits system that's wrong - as a previous poster said, it's that UC top ups allow companies to pay wages that people can't live on. A childless person on min wage, don't forget, will be paying tax on their already meagre wage and getting absolutely nothing back. Meanwhile fat cat CEOs and business owners are sitting on millions - that's what's wrong. The government encourages benefits bashing as a nifty piece of misdirection.