How the eff does Universal Credit work?

[GingaNinja84]

Posting for traffic

I go back to work part time next week. Today my boss sat me down and advised I look at what he called 'Child Tax Credits' to top up my part time wages in the short term, before I go back full time in the summer.

Unfortunately tax credits don't exist in my area it's universal credit. From what I can gather, I'd
have an assessment period where they look at what I earn, and calculate my UC from that. I then get paid five weeks later.

Here's my question. My January pay will be marginally more than my February pay due to me using some of my accrued holiday to postpone my return to work. Am I better off applying in February, and being assessed on my February pay check?

The only issue is my January pay, whilst more than February, will be about £200 short of what my family would need to live on (hence the need for UC!)

I don't know whether to apply now and run the risk of being entitled to less but still get the wage top up, or struggle through, live on beans on toast and apply in February?!

Hope I've made myself clear! Anyone help?!

Hi!
It's defiantly worth applying for UC now (January) because it'll take time for them to calculate. They sanction 60p off your UC for every pound you earn.
So they'll recalculate every month depending on your hours.
I work part time, between 10-19 hours a week and I get an online statement a week before UC is paid.
Be warned if you work you won't get much of a top up from UC. But you can apply for help with lots of things (housing,council tax)
Hope that helps x

@xKirstyPx ohhhh!!! Okay so it changes every month? That's good to know :) so while I won't get much for January, they'll see my payslip for February and up my entitlement?

Apply straight away. It will take at least five weeks before you get the first payment. More importantly it will be automatically recalculated every time your wages fluctuate, so will soon pick up February’s smaller pay cheque.

Kirsty they don’t “sanction” 60p. Obviously someone who earns money doesn’t get the same in benefit as someone who relies on them entirely.

@GingaNinja84 yes! I'm not sure if you'll get anything for January but if you get the online application done you may do. You can apply for an advance on payment if you're really struggling but will have to pay it back and becomes abit of a pain.
But yes, once your ID has been confirmed (you have to go through an external company like Expedia or the post office)
you'll just log onto your UC journal and you'll have your work commitments you have to agree to and the statements every month which show their calculations.

@Softleftpowerstance 'Sanction' is the word they use on their website, not from me.
UC is different for every single case.

Okay so how do they see my payslip? Is that through HMRC or do I have to submit it?

I'm all so new to this - I had no idea I could even get benefits (assumed as I was working I wasn't entitled) and now I'm wondering how this system all works!

Take a look through Citizens Advice website as there’s lots of good info on there. It sounds like it is definitely worth applying and even if they award zero this first assessment period just reclaim so they can then look at your next months income.

There are no more tax credits for new claims in any council, it's not just yours. All UK councils have been full-service UK since December, 2018.

its in arrears

so say you get paid the 5th of jan, depending on when you apply, your assesement period might be from 1st to the 31st of the month before, so december.

and so on

if your 4 weekly pay and have 2 paydays one month, them put money away for that! You will end up with nil payment that month.

Its a very crap system

they see payslips through HMRC, so they see what your employer has said you've earnt through HMRC. It is calculated after tax has been taken so on your take home pay.

Do you have a partner? If so you have to make a joint claim.

If you want to send me a PM I will post you a screen shot of my statement so you can see how is works (obviously with my name and stuff taken off)

If you are paid monthly, make sure you don't apply for UC near your pay day. If you are paid a few days early one month because of bank holidays, it can end up giving you two payments in the same month. If you apply mid-month, you'll avoid that.

Your assessment period is the day you apply to the day before the month later so appy and submit today your AP is 8 jan to 7 feb. You need to work out your pay window as oyu do not want to apply within it. I get paid last working day of month so i can be paid 26th to 31st of month - optimally you will apply the day after your most recent pay window. Or straight away if it is not in your pay window.

These are he entitlements
www.gov.uk/universal-credit/what-youll-get

Add the personal allowance, amount for children and for housing together. Eg mine is 317.82 for me 277 for dd and 573 for rent gives 1167 for entitlement.

Then get your pay, deduct work allowance and then do 63%. This is what is deducted, they use your actual wages as reported to hmrc each month so if your wages change so does your UC. Eg if i earn 1287. Work allowance is 287 if you have children and housing so 63% of 100 is 630. Entitlement - wages is 1167-630=537 so that is what i get.

Other things can be deducted like court fines any arrears from other benefits or tax credits any advances, gas water council tax and electricity can all apply to be taken out to if you are in arrears with any of them. These deductions would be on top of the earnings deduction. Other benefits are deducted in full except child benefit. As you are working you will not be subject to benefit cap so i will not explain that. Otherwise thats it.