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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:
Iecydda · 22/06/2021 23:27

Being thick here, does any know for a couple what's the threshold for getting UC help? My partner earns around £18k pa (ft) and I earn around £10,800 (four days a week, we have a just 1 yo) but think that's too much to get any sort of help? It's a push with rent!

Original poster
BonnyEm · 22/06/2021 23:33

@Iecydda

Being thick here, does any know for a couple what's the threshold for getting UC help? My partner earns around £18k pa (ft) and I earn around £10,800 (four days a week, we have a just 1 yo) but think that's too much to get any sort of help? It's a push with rent!
I think it's 28k combined for a couple
OP posts:
Iecydda · 22/06/2021 23:35

@BonnyEm Thank you. We probanly earn about £800 a year too much then! However, my OH is dropping down to four days soon to cover childcare so this may change things?

Interested in this thread?

Then you might like threads about this subject:

Benefits
MaybeCrazy2 · 22/06/2021 23:36

I understand where you are coming from and yes, lots of people do remain within receipt of benefits due to this trap.

Don’t want to put a downer on it but that extra £36 a month won’t even cover your lunch money whilst at work, so you maybe a tad worse off.

Plus side is that it’s called a trap for a reason, because people like you, who can get a job decide maybe it’s best not too, and that’s the trap! If you get the job then take it, because long term you will become better off.

Armadollo · 22/06/2021 23:41

Try a benefits calculator @Iecydda. There's one here:
benefits-calculator-2.turn2us.org.uk/

While you're at it, open a wage calculator as well. There's one on the money saving expert site. If you're just over the limit, it might be worth your while putting more into your pension. It sounds counter intuitive but you could be better off.

It's crazy the way the tax and benefits system interacts so you really need to use both calculators to figure it out.

Armadollo · 22/06/2021 23:43

Here's a net wage calculator. It's net wage that counts for UC.

www.moneysavingexpert.com/tax-calculator/

MarianneUnfaithful · 22/06/2021 23:45

But surely as more of your income is now wages, your employers contribution and knock on tax contribution will mean a much bigger payment towards your pension? With compound interest over the years that will end up being far more beneficial.

The new job is your stepping stone to pay rises, promotion, training and ultimately your next job.

Iecydda · 22/06/2021 23:47

Thanks. We don't qualify as we have savings that are meant for putting down as a deposit but we can't get on the property ladder because we don't earn enough!!!!

LemonSwan · 22/06/2021 23:48

My favourite cheesy saying of all time:
You will overestimate what you can achieve in a year and underestimate what you can achieve in 5.

Come tell us how you are getting on in 5 years OP :)
It would be great to hear your success story.

RagzReturnsRebooted · 22/06/2021 23:57

I completely understand how you feel, OP.
We have finally come off housing benefit this year, after I did a load of extra shifts and stopped qualifying for it. Could reapply, but I've taken it as the nudge we needed and you know what? It's so freeing!
I can now do an extra shift and know I'll get all that money in my pocket and not just 35% of it. It has given DH the kick to make his business more profitable and also means I don't have to fill out their complicated self employed income forms any more (bonus!).

It was definitely a bit of a poverty trap and I felt I couldn't save money because we should just be scraping by, now I'm taking on extra work and saving. It's been a long time coming - we've been getting it since we had DS1 15 years ago!

MyDcAreMarvel · 23/06/2021 00:09

@Iecydda @BonnyEm there is no earnings threshold for UC.

Gingerkittykat · 23/06/2021 00:12

@Iecydda

Being thick here, does any know for a couple what's the threshold for getting UC help? My partner earns around £18k pa (ft) and I earn around £10,800 (four days a week, we have a just 1 yo) but think that's too much to get any sort of help? It's a push with rent!
There's no threshold where UC automatically stops.

If you have a high rent and pay childcare you might get some money, use a benefits entitlement site to do a quick check.

OP, why are you only £36 a month better off? UC deduct 63p in £1 for every pound of earnings so you should be at least £120 a month better off.

Do you have high travel or childcare costs?

Iecydda · 23/06/2021 00:16

@Gingerkittykat Sorry, I meant What's the lowest (jointly) you can earn before qualifying? We earn around £2400 per month jointly but don't qualify as I have savings. Wanted to use those savings for a deposit on a house but don't earn enough to get a mortgage!!

lilmishap · 23/06/2021 00:27

@YouWereGr8InLittleMenstruators

Lilmishap, I agree with you, but seriously, I don't get your take away comment? Who can afford a take away once a week if, like me, you have to watch what you're spending as a main breadwinner on a mediocre public sector salary, and I imagine a person in receipt of UC would too? It seems a bit disingenuous and not congruent with the rest of what you're saying, all of which is spot on. The cost of a take away for a family is a huge percentage of the weekly food shop budget for us.
The point is we are constantly told if you work you can afford little luxuries.A take away once a week is a luxury. Others have a week in spain or a sunday lunch complete with a joint of meat once a week If you are imagining a take away is out of your remit or something only those wealthy can afford than ask yourself why? A £15 meal is an expense whether you cook it for yourself or not. None of my employers are struggling to choose. I have nothing to be ashamed of
safariboot · 23/06/2021 00:38

Soon enough, UC won't give you the choice. You'll be forced to apply to and accept any shit job on pain of having your benefits stopped.

But unless the more hours job has a much worse hourly rate, or you're calculating after travel costs, your figures don't make sense as has been mentioned.

Themeparklover · 23/06/2021 01:02

Hello lovely, try not to be disheartened it gets you out of a rut and into employment which could then lead to better things, 36 extra a month currently could mean a nice getaway or a few meals out for you in the year, I'm sure once you start that will increase or new opportunities will arise ect so do not worry about it at all think of it as volunteering for a small increase each week that gets you used to working life again

Meruem · 23/06/2021 06:33

It’s a long game. When I started a 2 yr training position I was actually no better off than I was on benefits. And even once the training was over it was only a small increase. But, as the DC got older and I progressed the difference grew. I earn a decent salary now and the people I know who decided it wasn’t worth working for years are now having to work for minimum wage. It is tough but see it as an investment in the future.

Sparklfairy · 23/06/2021 06:41

I get it OP, I don't really understand the tone of the replies going on about self respect etc. One could argue that working the extra for 82p an hour is more demoralising than on benefits.

How much scope is there for overtime and progression? Would you learn skills and gain experience that could look good on your CV so you could use this as a stepping stone to a better job?

PurplePansy05 · 23/06/2021 06:46

Well I'd also be proud of setting a good example in terms of work ethic, self-sufficiency and I suppose, ambition, for my kids, but each to their own.

Original poster
BonnyEm · 23/06/2021 06:48

@Gingerkittykat

I hope you're right and my figures are wrong.
We were using entitled to and used the figures from there to make our calculations.

OP posts:
HighlandCowbag · 23/06/2021 06:51

It is difficult OP, especially when you think a few sick days etc will probably wipe that gain out. Tho I think UC is more reactive than TCs.

All the posters saying otherwise are talking bollocks. Non of them would work an extra hours a month for £36 a month extra. Plus the £20 a month uplift ends soon. There are reasons to do the job, but if you have young dcs etc I'd spend the 11 hours a week upskilling from home personally.

Original poster
BonnyEm · 23/06/2021 06:54

And to everyone else, I have made it very clear. If offered, I am going to take the job!

This has nothing to do with self esteem or respect either. I, and my children for that matter are proud of the job that I already have as a lunchtime supervisor, it may only be 5 hours a week. Some of you may not class it as a job. But I and my colleagues work very hard and take our job very seriously.

OP posts:
Ineedtogotobednowplease · 23/06/2021 07:00

Not the same, but when my DC were little I worked part time. Because it was evening and weekend work, I received shift allowances that meant I pretty much what some would consider a full time wage on part time hours (18.5 a week). I didn't pay any childcare costs.

Then when I went full time in a Monday to Friday job and as a family we were actually worse off because we then had to pay for childcare. I used to want to punch people in the face who told me "well at least you're earning more now". When I was effectively paying to work in summer holidays etc.

It's only now after three long, very skint years and covid, that I'm working from home, the kids don't need childcare and we're feeling the benefit of my payrise Confused

I tend to find people who say about the self esteem of working, but you will be better off etc have never been in similar situations themselves and realised how demoralising it can actually be.

Looneytune253 · 23/06/2021 07:23

Lol there are lots of benefits to working that aren't financial tbh but the only way to avoid the trap would be to reduce benefits but it's not really feasible considering lots of people on benefits are on the breadline. Give it a go. It's still only 16 hours so still not a lot of time to work and you'll still have plenty of time at home and you also get a break from it all too

BigRedBoat · 23/06/2021 07:28

£36 a month isn't a bad thing, it's not loads of money but it could be your broadband and sim only phone contract for the month, or a new pair of shoes, or a couple of Christmas presents bought and put away each month, or a haircut. If you're on a low income/benefits surely all those little extras are hard to come by sometimes, won't it be nice to have a bit more to put towards those?