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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Universal credit

36 replies

Magicra84 · 07/08/2020 16:26

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.

OP posts:

Dishwashersaurous · 08/08/2020 22:36

Ok. I think I understand. You were furloughed and then got behind in previous months bills and used the advance to sort that out. Now you’ve been made redundant.

Whereas the expectation, rightly or wrongly, is that when someone is made redundant they will be able to use the final month pay and redundancy pay to tide them over until the first payment. Or use the advance for that month.

It is not expected that you will use the bill to pay old bills.

Maybe worth talking to step change who are good at debt management and might be able to help negotiate with uc for you or your landlord etc

Allywill · 09/08/2020 00:07

if you have zero earning during your next ap you will get your full amount of uc. if you have any earnings your uc will be reduced by 63p for every £1 earned.

MummytoCSJH · 09/08/2020 00:30

UC is always in arrears, it's just how it works sadly. I don't understand why you think you wouldn't get UC next month providing you're not receiving a wage which it seems like you won't? Your amount will have been £0 this time because you received a wage in the assessment period, next month that wage amount (63p for every £1 you were paid) won't be taken off so even if you have to adjust your payment dates you should still be able to pay them, you will probably just have to switch to paying in arrears but this is common so I doubt anyone will have an issue with it. The info about the advance, last wage being taken off, and it being paid in arrears is all mentioned online, but it does screw people over in that you for example should've waited till the 21st to apply - but they aren't clear about that

VagTarant · 09/08/2020 00:57

It's ridiculous.

I don't see how it's fair to have childcare paid in arreas. Childcare is so expensive. If you don't have a job, how are you supposed to pay for the 1st month of childcare so that you can go to your new job for example?

I'm looking at stating work soon after being on benefits while my LO wa younger. I can't afford 1st month of childcare. I will have to borrow it from my family. But then how will I pay them back?

MonkeyToesOfDoom · 09/08/2020 10:53

how are you supposed to pay for the 1st month of childcare so that you can go to your new job for example?

I asked my job coach.
If I get £1000 on 1st October. I have a job to start on 31st October when I have £0 left, travel expenses to pay, usual expenses and a month of childcare. Where am I supposed to find the extra?

They said I have to save up. Talk to to the child care provider and see if I can pay November's childcare in December. Ask friends if they can do some child are. The worst of all was when she asked,
"Do you have parents?"
"Yes one, she's 80 and has dementia, and she's an hour away"
"Can't she come and help?"

I just sat there and looked at her sort of perplexed..

Dishwashersaurous · 09/08/2020 11:00

How to pay for childcare.

The same as anyone not on uc - save up, or borrow from family.

Everyone gets paid for work in arrears therefore everyone who wants to start work and has to pay for childcare in advance has the same problem.

Uc simply mirrors real life, which is what it is supposed to do

Alwaysinpain · 09/08/2020 11:38

@Magicra84 contact your local council and ask for he local fund which provides supermarket food vouchers in a crisis (you'll get £40 for supermarket of your choice)

If you have rent to pay, your local council will pay discretionary payments (even when on universal credit and is done through housing benefit - yes, even when on universal credit. Not a lot of people know this)

Best of luck x

WrongKindOfFace · 09/08/2020 11:41

@VagTarant

It's ridiculous.

I'm looking at stating work soon after being on benefits while my LO wa younger. I can't afford 1st month of childcare. I will have to borrow it from my family. But then how will I pay them back?

It was also paid in arrears on tax credits. It’s never been paid upfront. However you can apply for help from the flexible support fund. www.turn2us.org.uk/Your-Situation/Looking-for-work/Flexible-Support-Fund

Babyroobs · 09/08/2020 11:42

It sounds like your last wages were paid after you made the claim and these wages have wiped out your first months UC ?

Babyroobs · 09/08/2020 11:45

@Magicra84

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.

You should have made your Uc application around 22nd July once all last wages/ holiday pay etc had been reported to HMRC. As you have had wages fall in your assessment period that is what has wiped out your UC. Had you applied after wages were paid you would have had a Uc payment. Redundancy pay is treated differently to wages ( if reported correctly by your employer), and is treated as capital.

Babyroobs · 09/08/2020 11:51

For anyone else in a similar situation wondering when the best time to apply is, you need to apply after all last wages/ holiday has been reported by your employer ( you can check this somehow online). If people are working and making a claim for UC then you need to keep the day you apply well away from your monthly pay day ( if paid monthly), so that you don't have the issue of two pay days falling in your assessment period for example if you get paid early at Christmas or prior to a bank holiday as this can potentially wipe out any Uc straight after Xmas when you can least cope with it.
If people are paid four weekly there is no way of avoiding one month per year when 2 pay days fall in the same Uc assessment period. It only happens once a year and you get slightly more Uc all the other months but it's best to plan for when this will happen and put a little aside each month to cover the one month where your Uc will be severely reduced or wiped out. If you are paid weekly, your Uc will be variable depending whether four or five pay days fall in your assessment period, same with fortnightly pay.

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