To understand universal credit - low/mid earners in similar position

[Haveagoodevening]

This is a genuine question & just wondering if OP can help me understand why people in a similar position to me need to claim universal credit & claim to “need it”.

My position, single mum 1DC at secondary no childcare etc. Not claiming universal credit (I have savings above the threshold).

So, I checked out of curiosity when Martin Lewis was recommending anyone under £40k PA checked (so just looking at comparable incomes here) & if I hadn’t saved it said I would get approx £150PM. This was a few months back, pre April so it would probably be more now.

I probably would have been able to claim previously, lower income, pre savings but it never even occurred to me to check once my DC went to secondary school. We didn’t claim childcare at the time either as it was prior to separation.

I am in a council place so realise my rent is lower (I am just asking for comparable here) I understand private rent is extortionate, so therefore need contributions for this. My savings are for a house deposit (though I don’t know how realistic this is due to age).

What I don’t understand is how people on a similar income/position need to claim. I manage a holiday abroad once a year, I pay for a tutor for DC (once a week), driving lessons too, own a car & I save.

I think a great many more people would be entitled to claim UC as a top up if they applied... but things like pride, or managing how they are, can come into it.

Some people make a hobby out of applying and claiming everything going.. and some people (looking at my DB here) will struggle but refuse to claim.

I think with low rent and zero childcare you wouldn't be eligible tbh.

When you actually apply it can be different to the indicative figures.

The calculator isn't accurate. If you don't want to claim it then dont claim it. You don't get a cookie or anything like.

Just apply and see if you get anything. I was told I couldn't, I applied and got awarded a few hundred pounds each month. It really helped us out. I start a new job next month. So.I'll be off it, but I've been so grateful for it.

I had to go on Universal Credit in 2021 when my work had closed down randomly, so I claimed for me and my DD as I was receiving no other income at that time. I quickly found another job and I assumed my claim would be closed but I still have a open claim and get some of my rent paid, sometimes all of it paid depending if I've been on shift every day.
I don't think I earn enough for Universal Credit to close my claim and apparently it's £2000 odd a month before your entitlement to UC is nil that's as a single person with a child born before 2017. I'm not 100% sure that's accurate though, just what I've heard. I am also council housing so my rent is okay tok

OP said she has savings above the threshold. So savings of £16k + she will get nothing, although from £6k up to £16k is tapered.

You're so lucky to have a council house as the rent is cheaper than any mortgage payments or private rent. With savings over £6000 no childcare, good salary. Someone can earn the same as you do but then their private rent is £1,300pm which is normal these days. Obviously they will be entitled to some sort of help if they have to claim.

40k
2700 a month
Rent 1k and childcare costs 1k ( 2 part time or 1 full time )
700 a month to feed an adult and child , electric and gas and council tax and water and home insurances and internet connection and transport

Count your blessings

People have much higher rents than you. Or people have disabled kids so their UC is loads higher with addition of disability elements and carers elements. many in your situation with just one child and no childcare costs won't be eligible for UC.

This wasn’t a dig.

I was talking comparable. I specifically said I understand childcare/private rent etc.

Did you read my post?

Yes I read it and interpreted it clearly in wa way you didn't intend

;-)

@newyearsresolurion

Totally agree private rent is ridiculous. I’m not criticising anyone paying private rent & do count myself lucky.

I’ve had a few sensible responses but I don’t think everyone is reading SIMILAR CIRCUMSTANCES..

Im not criticising anyone with different circumstances. I’m just wondering how they work out entitlement.

I’m saying that if I don’t need it maybe the calculations are all wrong.

Am also trying to understand how someone in the same position as me (minus savings) can’t do without, can’t save from what they get etc.

It all depends on your outgoings really. I have a mortgage rather than rent so I get a higher work allowance. I claim for two dc and the extra couple of hundred quid makes a big difference to life. I work full time for the LA and I think a big issue is that wages haven’t kept up with inflation. I earn a bit over £30k which isn’t awful. I did look at private sector jobs and I reckon I could get £10k more but would lose lots of flexible working benefits, have to pay for childcare, longer commute. I don’t think I’d be any better off especially when you take into account the pension contributions.

I think Uc is relatively generous to single working parents. I don’t think that’s a bad thing, children being raised in poverty is a bad thing. I do think there are a couple of sweet spots. Working school hours so you get your full work allowance but low costs, no childcare etc. and earning a decent amount over minimum wage.

I first started claiming UC when I separated from Exdh I had been a sahp. First job was pt I was earning about £12k when I went ft My wages went up but I was poorer day to day as costs went up a lot. Managed to get more money and was better off as costs were fixed at that point and you can take home an additional 25p for every £1 earned

I honestly think not every body is in the same situation. You're very lucky to be in a council house. My friends have either high rent or mortgages, that wipes out half their salary. I think if they can claim anything to help that they're entitled to, then that's great. Even if people are living in a council house, they may not have any savings due to working minimum wage part time or caring for disabled children. When I used to work full time, my childcare costs were crazy. Nursery fees are so expensive. Theres so many factors that affect peoples finances. Everyone's situations is different. It's great that you're in a secure place financially, but remember everyone's different.

Assuming the calculation you entered includes rent and council tax, if I'm reading you correctly, you earn enough that you might just be entitled to £150 a month and you don't feel you need that extra, so are wondering why others might.

There has to be a taper and it's never going to be a one size fits all situation. There will be people with similar income and housing costs to you who have higher energy bills (due to location, age of house/flat, personal factors such as health conditions), or higher transport costs (due to distance from work and school, or in rural areas) — for these people the extra c.£38 a week could make a big difference.

Have you da tired in child maintenance OP? Because that is a massive variable for single parents and you can’t assume everyone gets it.

Regardless, surely you can understand that everyone’s circumstances are different.