Universal credit

[Magicra84]

I applied for universal credit because I was being made redundant. I applied a few weeks before the redundancy. I've now got my first statement of what I'll get paid and it's paid in arrears (they didn't tell me this when I was sorting my claim by phone), so it's worked out that I'll get nothing because of the paying in arrears so I have no money for bills etc. I should get paid normally next month but what in the holy hell is this? I had an advance and paid off lots of arrears of bills I'd got behind on. Really worried about how I'll manage. Time to stick some bits on eBay.

I don't know anything about uc but reading from what you said - you paid off your arrears from the advance. Were the arrears from before you applied so therefore not really included in your uc ? I assume backdating is from the receipt of the claim and wouldn't cover any bills/ debt from before then.

Yes that’s how they’ve always done it’s hard to get use to at first but then it gets easier they go off what you got the month before to work out what your entitled to this month. Like for instants with me my husband works so whatever wages he got last month will be used to work out what money I will receive from universal credit this month. It’s a very confusing way of doing it and it badly affects anyone who works and gets UC because if they do a load of extra hours last month whatever money they got paid that will be used to work out what they get this month which leaves a lot of people struggling because they lose their UC for this month and they may not get enough in wages to cover everything.

It's so frustrating because as it is now I'm left with £0 for more than a month.

I started on Universal Credit in April after a bad accident, and I am only now starting to get the hang of it. All I can suggest is putting a question in your journal to them, they're actually really helpful and reply quickly. Also, get in touch with your local council, each one is different but some offer hardship loans, grants and help for things like this! Good luck OP.

Uc mirrors/mimics work and thus is paid in arrears.

However if you have no savings at all then you can ask for an advance, which is paid back over a year, to cover the first month rent and housing costs

I think the OP has already had the advance. It is like getting a new job, you don't get paid until after a month usually.
Don't forget to apply for council tax relief OP. Each local authority has a different rate and they base it on your UC statement (which you might not get until nearer the next payment).

gov.uk has lots of information about uc. it is much easier and less stressful if you read up about how it works

They take into account what you have earned from a set period, say the 3rd of the month to the 2nd of the next month. Everything between those two dates is taken into account.

All benefits (and wages as far as I know) are paid in arrears. Has your redundancy payment been paid to you?

Its exactly this that has led to destitution, food bank use and increase in poverty.

People get nothing for a set period, they take an advance, that in turn leaves them short for a whole year.

As sickening as it sounds, the best you can do is to try and get through it as best you can. Sell stuff, ask for food bank referral, talk to cab about advice on lowering outgoings.

Eventually it levels out but be prepared to adjust your outgoings. We live on £1000 a month to pay rent, council tax, gas, electric, etc etc. It covers bare bones essentials, but fun and treats are a once every couple months kind of deal.

Also, BE WARNED... Childcare is also paid in arrears.meaning you'll have to pay the first month's child care and claim it back the following month.

Also also BE WARNED... Depending on what job you get it will affect how often you are paid. If you get a weekly paid job, several times a year you will get 5 week's pay in a month and your UC claim will automatically end and you'll have to reckon the month after so you'll have to save up for the months you get nothing.

Thank you for your replies. I am now worried that I won't get anything next month too. Really feel at rock bottom.

This month's assessment period was 06 July to 05 August, so I'm assuming next month's assessment period will be 06 August to 05 September.

My last wage from my job was paid on 20th July so I am hoping and praying that I will get paid next month.

I will look into getting help from the council in the meantime.

Thank you everyone.

Ok well if you last wage was 20 July at least you can use that to pay August rent and bills, which you would have done if you hadn’t been made redundant.

If you got paid on the 20th July how ate you already struggling? Surely, if you were still in work you wouldn't expect any other income until 20th August?

You might be entitled to new style Jobseeker’s Allowance if you paid enough national insurance? It’s deducted from universal credit but isn’t affected by wages from previous employment. You can claim it online. Might be worth looking into?

Also, make sure you apply for council tax reduction, and free school meals if you have kids.

July's wage was used to pay July's outgoings, rent and other bills are due out just after I got paid, so if I would have got UC on 12th I would've paid this month's rent and bills due out on 20th and just after.

Your situation is unusual in that most people pay rent in advance and then get paid in arrears.

Whereas you pay rent in arrears. As if you pay rent on 20 July you effectively are living for free until the 20th until you then pay for it . And then you pay part arrears/part advance.

That’s a very unusual rent situation so perhaps talk to your landlord about whether they would agree to amend for rent to be totally arrears and therefore you can pay August at beginning of September rather than on the 20

You can also apply for a uc advance to cover rent- as it recognised that most rent is in advance and wages/Uc are in arrears

Don't forget to apply to the council for a reduction in your council tax.

That will help, and they may be able to backdate it a couple of weeks.

I’ve been thinking about this. What did you think the advance was for, other than to pay rent?

What did the universal credit people say?

I’m just wondering how other people can avoid getting in the same situation

I used the advance to catch up on bills.

But what would have you used to pay the bills if you had remained in your job?

OP, I would speak to your utility companies and anyone else you'll need to pay bills to and explain that you're waiting for UC to come through if you can't pay them yet.

As long as you keep communicating with creditors and pay as soon as you get the UC, it shouldn't end up getting too serious. You could also look into changing your billing dates to after the UC payment date to give yourself a bit of breathing space.

My wage. I've been furloughed and so the bills took a hit so I used the advance to try and catch up with them.

Thank you @LonginesPrime I have started to contact them for a break from payments. It'll definitely help in the shirt term. I just really, really hope I get paid by UC next month if I haven't got a job by then.

So you haven’t been made redundant? Hopefully you won’t be then. Whether or not you get any UC next month depends on what you get paid from work on your next work pay day.

If you’re struggling with rent and Uc doesn’t cover it all you can apply for a discretionary housing payment from your local council. You can probably do it on their website.