Universal credit increase budget 2021

[LittleBirdy1]

Have I missed something with this announcement? Papers all reporting how people will be worse off and it makes no difference to peoples pockets. I think the changes should make a big difference to people, tapper rate lowered to 55p work allowance up by £500 a year.
500%12=41 41+293=334 new work allowance if you rent.

Take home pay of £2500-334=£2166
2166x0.55=£1191.30
£2000

• £1191.30

—————- £808.70 universal credit

Old workings out
£2500-293=£2207
£2207x0.63= £1390.41
£2000-1390.41=609.59

Based on a family of 2 adults, 3 dc, rent of £595 take home pay of £2500

Wooaah...you can have take home pay of £2500 and still get universal credit?!?

Does anyone know if the same things are being applied to tax credits?

I don’t know @THOSEcobwebsareDECOR about tax credits.

@CelestialGalaxy I never said they were my workings out, I used the allowances from the universal credit website and a round figure of £2500 for take home pay.

I don't understand your workings.

The taper rate is the amount that is deducted from UC.

What is the UC entitlement figure before the deduction?

Just commenting for a bump

@CelestialGalaxy

Wooaah...you can have take home pay of £2500 and still get universal credit?!?

Exactly what I thought

@Pumpkinstace the universal credit allowance is £2000, that’s a couple off 25, 3 dc born before 2017 and rent of £595.

You deduct the work allowance from the take home pay then times it by the taper rate. Deduct that amount from the £2000 allowance gives you your award.

I've think you've put 2000 as the UC amount before deduction.

509 couple rate
282 first child
237 second child
237 third child
595 rent.

That's not £2000. And if the third child is born after 04/17 they won't get the 3rd child rate.

They might not be getting full rent either.

You at right in what you are saying. I'll be 'better off' by about 60 quid a month. But I won't because of the removal of the 80 quid uplift.

But your fictional family wouldn't be getting that
much UC.

I thinkkkk your workings out are slightly off. Only because you added the entitlement up as 2K and it would be £1.8K. My workings are below.

2 adults - entitled to £509.51
3 DC - entitled to £756.66 (if all born before 2017)
Rent - £595

Universal credit award = £1861.17

Earnings of £2.5K as a household
£2.5K minus £334 work allowance = £2166
£2166 x 0.55 = £1191.30 earnings disregarded

So income of £2.5K plus UC award of £670.

So yes, a family with two adults and 3 DC born before 2017, who pay £595 in rent a month and earn £2.5K would be entitled to £670pm UC

I haven’t seen anything saying they are changing the work allowance?
I rent and work part time so my allowance is £293.
I worked out of be approx £36 better off.

@CatFaceCats

I haven’t seen anything saying they are changing the work allowance? I rent and work part time so my allowance is £293. I worked out of be approx £36 better off.

Yup - work allowance is going up by £500 a year. Says it in the budget. So £41 extra a month. So £293 + £41 increase in allowance means the new allowance from December will be £334

I see your point op , but the disabled and carers that are unable to do paid work will not be better off. These two categories often go hand in hand so are double screwed going forward.

Thanks @selflove

@ToastCrumbsOnAPlate

I see your point op , but the disabled and carers that are unable to do paid work will not be better off. These two categories often go hand in hand so are double screwed going forward.

I would say though that the disabled/carers/those not working already benefit from: Free prescriptions Free dental treatment Free school meals Free eye tests School uniform grant £180 winter fuel allowance Council tax benefit

As a working person on UC, I don't receive any of the above. So they can still get their basic needs met regardless of the fact they don't benefit from the new budget - they don't have to worry about not being able to afford antibiotics or heating, or school meals or uniform for their kids, because those are already covered for them.

Also, for someone on NMW, the NI increase in Jan is going to cost them approx £19 extra a month, whereas those that don't work won't be affected by the NI increase, so I think it makes sense that this budget supported the "working poor" first.

My daughter gets UC. She's disabled and can't work. She's had £80 a month taken from her while the cost of living is increasing rapidly. She, and many others, are definitely worse off.

This is my universal credit allowance, for 3 dc youngest born in 2011 and rent of £595 so yes I was out by £10.

@LittleBirdy1

This is my universal credit allowance, for 3 dc youngest born in 2011 and rent of £595 so yes I was out by £10.

Does that still include the £80 uplift though? Looks like it. So you're £90 out. You have to use the calculations for the individual elements WITHOUT the uplift, as it ended at the start of the month.

Your "joint adult over 25" rate goes down to £509 on your next award

So sorry about that @stingofthebutterfly.

It's actually £86 a month that she'll be losing.

How the government can sell that as a good thing I have no idea.

Disabled children don't get a winter fuel allowance

You only get one lot of school uniform grant if your in an area that does it that's not one a year that is one total

Free dental if you can find a dentist that does NHS

Free prescription I should get that anyway because I have a chronic illness but it's not the right kind of chronic illness so I don't

Council tax benefit depends on the area as to what you get

@selflove yes , I just had a tiny ounce of hope that all groups would see something positive. Silly I know

Also , as a working poor person before disability struck our family we struggled far far less with managing. And that included paying council tax , paying for our nhs exemption certificates etc.

I've been both working poor and in a disabled spouse/carer situation and this is harder financially by many many miles.

That said , it's not a race to the bottom and I realise that it's going to be a tough winter for many for different reasons.

No that is from 26/10/21 uplift ended for me 26/09/21.

I'm pleased by the announcement. I was worried about losing £86 per month. I felt the pinch this month after it stopped. I had to juggle things around to pay for child care before my wages came in.
Based on my calculations, I'll be better off by around £100 per month so it makes up for the £86 lost and then some.
Single working parents will probably benefit the most but it also greatly helps working couples too as the work allowance will be going up too.
I understand that those who don't work will feel put out but as pp said- you have prescriptions/dental/eye tests/council tax benefit covered as well as the warm home discount if you have children under 5.

I work full time and the cut may have meant asking to reduce my hours and therefore pay less tax and NI.

What disabled children and carers get is a £10 Christmas "bonus" followed by a letter telling you that if you get it twice (due to there incompetence) you must ring and tell them and you will be expected to pay it back fortunately I live with the person I care for his bonus goes on Christmas day heating so we can not be cold for a day

@selflove I get carer's allowance. I also get child benefit. That's my entire personal income.

I don't qualify for anything you've listed, nor do I qualify for UC myself, because I have a husband who works. Heaven knows how I would survive if he didn't give me a portion of his wages. He doesn't earn bucket loads either.

@THOSEcobwebsareDECOR

Does anyone know if the same things are being applied to tax credits?

It's not being applied to tax credits. I think it's due to the migration. Tax credits are based off your income from the previous year. UC is calculated every month.