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AIBU?

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Original poster

AIBU to question whether UC rules create incentives to limit earnings?

194 replies

Justwonderingum · 10/04/2026 21:35

Unpopular topic, I know. But I'm trying to understand how UC works. It looks to me like there is a huge gap where you are much better off limiting the hours you work, paying yourself less from your company, or even over paying into your pension as you can claim the difference in UC. Also claiming UC means you pay less for many other things, and will include free school meals soon too. So AIBU to wonder if this really is the case or are these loopholes closed? A quick play seems to suggest that even on a household income of £70000 can claim over £1000 a month, assuming 2 plus kids,including one with lower rate DLA

OP posts:
MyLuckyHelper · 10/04/2026 22:14

XenoBitch · 10/04/2026 22:13

Sorry, I mean you lose 55p in UC or every £1 you earn.

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Yes, I understood what you meant. And rightly so. Why would you keep your full UC and have your wage.

the point is, you’re still better off working as you have £1 from your wage and 45p from UC, instead of just £1 from UC.

Original poster
Justwonderingum · 10/04/2026 22:14

@MyTrivia I am not sure what your point is.?

OP posts:
XenoBitch · 10/04/2026 22:13

MyLuckyHelper · 10/04/2026 22:11

You don’t lose 55p, you’re awarded 45p for every £1 you earn. You’ll be better off as you have your £1 wage + 45p UC

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Sorry, I mean you lose 55p in UC or every £1 you earn.

MyLuckyHelper · 10/04/2026 22:13

KidsAndDogsGalore · 10/04/2026 22:12

I agree. When the benefits bill is higher than what the treasurey receives in income tax then we are on a slippery slope. We can't carry on like this.

www.msn.com/en-gb/news/other/welfare-costs-outstrip-income-tax-as-labour-faces-fiscal-test/gm-GM2B8023FA

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Should probably start means testing pensions then shouldn’t we, given that they’re the biggest portion of the welfare bill

MyLuckyHelper · 10/04/2026 22:12

Justwonderingum · 10/04/2026 22:09

From a personal perspective it makes sense to work less, more time with kids, less childcare and just get the money anyway. As long as you rent. That's from an individual perspective. Does not make sense as a society. But realistically with rent at £1400 what is the minimum a family of 6 can live on, including food, clothes, travel, incidentals eg car repair etc.

I’m not sure how many times you need to hear that the taper system means that th more you work the better off you are.

Of course you could choose to work 18 hours on NMW (the minimum you can earn without being required to work search) and have more time with your children, but you would have less money than if you worked full time.

KidsAndDogsGalore · 10/04/2026 22:12

Nimonion · 10/04/2026 22:05

Should we not question a system that appears to disincentivise working? Does it not worry you? Do you not worry about where taxes are going to come from if people realise that they’re better off not working? Do you think there’s a magic money tree growing somewhere?

It concerns me.

Show quote history

I agree. When the benefits bill is higher than what the treasurey receives in income tax then we are on a slippery slope. We can't carry on like this.

www.msn.com/en-gb/news/other/welfare-costs-outstrip-income-tax-as-labour-faces-fiscal-test/gm-GM2B8023FA

AutumnAllTheWay · 10/04/2026 22:12

MyLuckyHelper · 10/04/2026 22:11

You don’t lose 55p, you’re awarded 45p for every £1 you earn. You’ll be better off as you have your £1 wage + 45p UC

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If this is true, why dont you do it?

Be mad not to.

Hang on...

AutumnAllTheWay · 10/04/2026 22:11

MyLuckyHelper · 10/04/2026 22:11

You don’t lose 55p, you’re awarded 45p for every £1 you earn. You’ll be better off as you have your £1 wage + 45p UC

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Are people really this dense?

thisfilmisboring123 · 10/04/2026 22:11

MyTrivia · 10/04/2026 22:07

So You’re having a go at families earning £70k claiming DLA?

DLA is not means tested. David Cameron claimed it for his son. Leave disabled people alone. They deserve to have this benefit to pay for the things that they need that NT kids do not!

Edited

Not the point of the thread but what does ‘NT kids’ mean?

MyLuckyHelper · 10/04/2026 22:11

XenoBitch · 10/04/2026 22:08

Yep.
If you are on UC and looking for work, you get no work allowance. So you get about £100pw to live on, and if you get a little zero hour/part time job, you lose 55p for every pound you earn.

Edited
Show quote history

You don’t lose 55p, you’re awarded 45p for every £1 you earn. You’ll be better off as you have your £1 wage + 45p UC

Original poster
Justwonderingum · 10/04/2026 22:09

From a personal perspective it makes sense to work less, more time with kids, less childcare and just get the money anyway. As long as you rent. That's from an individual perspective. Does not make sense as a society. But realistically with rent at £1400 what is the minimum a family of 6 can live on, including food, clothes, travel, incidentals eg car repair etc.

OP posts:
MyLuckyHelper · 10/04/2026 22:08

Tableforjoan · 10/04/2026 21:59

I agree if earning £10 more a month cost me £100 in just say lunches alone what would be the point in that small increase.

UC works on a taper system, not a cliff edge: it’s unique to each family. In order to be £10 “over the limit” your earnings would be much more than the £10 you award was reduced by.

XenoBitch · 10/04/2026 22:08

MyLuckyHelper · 10/04/2026 22:06

It doesn’t de-incentivise working though. The more you work, the better off you are….

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Yep.
If you are on UC and looking for work, you get no work allowance. So you get about £100pw to live on, and if you get a little zero hour/part time job, you lose 55p for every pound you earn.

MyTrivia · 10/04/2026 22:07

So You’re having a go at families earning £70k claiming DLA?

DLA is not means tested. David Cameron claimed it for his son. Leave disabled people alone. They deserve to have this benefit to pay for the things that they need that NT kids do not!

MyLuckyHelper · 10/04/2026 22:06

Nimonion · 10/04/2026 22:05

Should we not question a system that appears to disincentivise working? Does it not worry you? Do you not worry about where taxes are going to come from if people realise that they’re better off not working? Do you think there’s a magic money tree growing somewhere?

It concerns me.

Show quote history

It doesn’t de-incentivise working though. The more you work, the better off you are….

MyLuckyHelper · 10/04/2026 22:06

Tableforjoan · 10/04/2026 21:58

If all their components add up you can.

There is no maximum earnings limit.

Edited
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Oh yes you’re right. I was going on her entitlement figure but she was way off. If they get their full rent covered they’d get £884/month in UC.

my mistake.

If they didn’t work, they’d have much less in their pocket at the end of the month.

£5970.74 wages + UC
£3447.52 UC only

Nimonion · 10/04/2026 22:05

Locutus2000 · 10/04/2026 21:37

Another attempt to divide and conquer comrade? There's already plenty of threads full of hate for you to enjoy.

Should we not question a system that appears to disincentivise working? Does it not worry you? Do you not worry about where taxes are going to come from if people realise that they’re better off not working? Do you think there’s a magic money tree growing somewhere?

It concerns me.

cadburyegg · 10/04/2026 22:03

Entitled to is not always accurate. It’s better to do the calculations yourself. There are various UC Facebook groups which advise this

Original poster
Justwonderingum · 10/04/2026 22:03

@cadburyegg how much of the £500 was UC and how much earnings?

OP posts:
cadburyegg · 10/04/2026 22:01

You’re wrong. I get a UC top up. When I got a better paying job and increased my hours from 22.5 to 30 I became £500 a month better off.

Original poster
Justwonderingum · 10/04/2026 22:01

I'm assuming they would get even more top up if working at minimum wage. £2000 UC is worth £3000 before tax. So equivalent of over £100k per year. And still get free school meals etc

OP posts:
Doggymummar · 10/04/2026 22:01

Tableforjoan · 10/04/2026 22:00

Only fans 🪭

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Mmm it's tempting

Tableforjoan · 10/04/2026 22:00

Doggymummar · 10/04/2026 21:57

Wha job can I work 25 hours and earn 35k please

Only fans 🪭

Tableforjoan · 10/04/2026 21:59

I agree if earning £10 more a month cost me £100 in just say lunches alone what would be the point in that small increase.

XenoBitch · 10/04/2026 21:59

ThisMustBeMyDream · 10/04/2026 21:58

Band 6 nurse or midwife.

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A job that needs a degree. So easy to get.

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