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Universal credit question

3 replies

TTCbaby2x · 05/03/2025 13:56

I am currently claiming UC while on unpaid maternity leave.

I have had to hand my notice in as my son is disabled and I am his carer. My end of employment date is 21/04 and I am going to be receiving a one of payment from my employer on 25/04 for holiday pay they owe me from 2024. This will be around the £1800 mark.

I currently receive around £580/£600 UC per month. My question is when I receive this one off payment from my employer, how many months will they drop my UC to £0 for? I assume the first month it will drop to £0 because of the one off payment that month but the following month will they drop it to £0 too? Essentially the one of payment from my employer benefits me in no way then as I am being deducted UC to cover this full payment?

Also another question, the month my UC drops to £0 do I have to reapply for it again for the following month, will they cancel my UC claim? Or as it's a one off will they keep my claim open and pay me as normal the following month?

I'm not sure how it works and would appreciate any advice.

OP posts:
Nonametonight · 05/03/2025 13:59

It won't affect subsequent months at all. It only would if it were more than £2500 over the amount needed to take your UC for the first month to zero, so you're fine

And no, you won't need to reapply. Claims stay open for a few months of zero payments (I think six months)

Though be sure to log into your account to double check

Mrsttcno1 · 05/03/2025 13:59

UC will treat it as earnings in the assessment period that HMRC tell them it is received, so in theory it should only impact 1 month, and for a one off month I don’t believe your claim would be cancelled no

Shmee1988 · 05/03/2025 14:00

They should keep the claim open and only drop you for one month. I work but I get a top up for childcare costs and every year I get a bonus that takes me way above the threshold, so the following month I get £0 and then I get it back again.

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