Confused about universal credit

[DIONORA]

I'm on maternity leave at the moment, I'm a single mum and above the threshold for universal credit. In my 7th month of maternity leave my pay drops from full to SMP. It then drops to unpaid for the last 3 months.

Once I drop down to SMP, will I then be entitled to universal credit due to a smaller income? Or would it be based on my contracted salary?

This is the difference between me going back to work in a month or not, but I really don't want to as my son is not weaned yet and was born early so is behind developmentally. Would like a bit more time with him as he was in hospital for so long initially.

It's based on your income now not your salary so you'll be eligible for the money from universal credit.

@HappyPunky absolutely totally 100% sure about that? If so, my life just got a lot easier for the next 6 months!

My universal credit payment goes off what I’ve earned the month prior so you should be entitled to it.

Hi OP, the benefit threshold would be for the financial year being April to April.
If you was to take the SMP and non payment for three months and it also be UNDER that threshold for the financial year I believe you maybe entitled. (Tax Credits work this way but unsure about Universal Credit though)
Hope little one is OK! I have a 8 month old was due back tomorrow but unfortunately hes got a nasty chest infection atm so I've taken "dependent leave" till Tuesday (obviously depending how he is then)

@Mummyto2munchkins that's confused me 😩 I'm so sleep deprived I can't get my head round it.

Speedy recovery to your little one @Mummyto2munchkins

Universal Credit goes on take-home pay.

Beware that this means that tax refunds get regarded as income by Universal Credit, even if the tax was paid when you weren't claiming! I got £0 UC this month because my employer fixed my tax code and refunded a load I'd paid this past year that I shouldn't have.

Benefits adviser.

"Once I drop down to SMP, will I then be entitled to universal credit due to a smaller income?"
Yes

"Or would it be based on my contracted salary?"
No

As PPs said, Universal Credit is based on current income (well, previous month's income) so just apply the day after you have received your last full pay.

Mummyto2munchkins
Tax credits and Universal Credit are completely different. Previous tax year's income is not relevant for UC. The calculations are based on actual monthly income.

I don't mean to be rude but you should ignore Mummy's post, it's not relevant to you at all, as you will be claiming UC and not tax credits.

Google for your nearest Welfare Advice, and make an appointment to see them. Take all your paperwork with you. They can check your entitlement to all the relevant benefits.

Or just use an online benefits calculator like entitledto.co.uk

It's pretty straightforward tbh, a single parent on SMP, no other income and savings under £16k (I assume?) will be entitled to UC.

You will probably be entitled to some CTR too.

My bad... They Confuse me... (although I did say I didn't know if it was the same)

Good luck though OP :) hope you get it sorted.

Usebetteroffcalculator.co.uk too.

Don't forget council tax support claim from local council too.

@AnotherEmma what's CTR?

CTR = Council Tax Reduction, also called Council Tax Support by some councils

Do you rent or have a mortgage?
Does the father pay child maintenance?

I'd be a bit wary of online calculators. We are entitled to UC but both online calculators I've used said we aren't.

Everything is online. Gov.uk.
It will check your area uses u c too, not all do.
I’d just fill it in. You get an appointment to go through it all and it works a month in arrears so don’t wait too long. Despite the horror stories found it pretty painless (so far). They’ll soon tell you if you’re eligible etc

We've found it pretty easy too, after the initial long wait it's been plain sailing. There are horror stories, yes. But I do honestly believe they're in the minority.

On the calculation for the payment they show everything that you would get then they deduct the same amount that you're getting for statutory which is a bit over £500 and then when the statutory ends and you're on the unpaid three months you get the universal credit money because they're not making the deduction.

That's what happened to me.

Sorry my reply was assuming that your smp is your only income. Maintenance isn't taken into account but if you have savings or another income it's different.

I was renting so my rent was covered and the allowances for me and DD added together were the same as smp so the money I got was the same it just came from a different place on their side of it.