Universal counting the money that's taken out for pension as income. AIBU?

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It's fucking embarrassing to be a Band 6, husband working full time and having to claim universal credit in the first place.

But we need the meagre amount UC give us toward the childcare.

Ive noticed UC have noted my take home pay as more than I actually have as take home.

They have just replied to say that the 9.8% pension isn't deducted.

They consider that as income.

Income that I won't be getting until I'm in my 60's (at least!).

AIBU to be angry and gutted? We are utterly broke.

Christ alive just sod off.

It is only "relievable pension contributions" though according to the legislation thus any contributions made by the employer are not relievable and form part of the income whereas contributions made by you personally from salary are relievable.

Is the amount added back in as income the amount your employer contributes?

Ohhhhhh fuck

Why would the employer even mention the employer contribution though? It's not part of anyone's salary.

OP I’m a band 7 and get UC!

Dont be embarrassed. The messages I get from my barely literate “work coach” are the same.

Have I considered more hours? (Already work 37.5 hrs a week with children and childcare)

Constantly rejected childcare invoices because they don’t match up with this that or the other

Deep breath and explain like they are 5

Thank you. I genuinely appreciate this.

I'm equivalent of band 6 (practice nurse) and my pension contributions aren't counted as income for UC. Also my work coach is great, I couldn't get in to do the paper work as I was working so they did it by phone and I don't have to look for work or do anything at all expect submit any extra earnings (work 32 hours PAYE plus extra locum every few weeks).

This thread is like a rollercoaster!

thank you for this info!!

Also try going into the Job Centre and ask to speak to someone. Obviously this is only possible if you work shifts/part time and can get there when it's open.

I was a band 6 and still getting UC. I've now given up nursing and can work 58 hrs a week and still be entitled to it.

In answer to the person asking about putting money into pensions to still get it - I think it is possible of you voluntarily contribute more to your pension eg 16% instead of 9%.

However you have less income overall, as you are not having the extra 45p per £1 earned. Which can make a big difference if you are struggling.

I imagine the reason they have allowed this, is because the government won't then have to top up your pension with pension credit when you retire.

Most people on UC are not in a position to be saving for the future. So having an increased pension means the government won't be topping it up. And they won't also be topping up with the other benefits you get if you can claim this.

And working people who get UC are still contributing tax and NI.

OK first off it's not the person messaging you that has made a mistake in the calculations, the calculations are done entirely automatically by the system based on what has been submitted to HMRC by your payroll.

The system takes your taxable pay (so non taxable things like pre tax pensions or fuel reimbursement is disregarded,) only taxable income is used, then UC has the amount of tax paid, NI paid, and RAS pensions and other pensions.

Uc deducts all tax and all NI and some pensions, there are certain pension types that cannot be deducted.

All other deductions are ignored, student loan, clubs, private insurance, union fees Etc. I have £11 student loan and £2.30 haasra fees deducted that I have to add back in to wark out what UC are using for my pay.

I pay £100 student load back.

Perhaps this is the issue... rather than the pension as the work coach thought?

Which, mathematically would make much more sense...

Actually that doesn't make sense.
My pay already deducts that.

You may need to read the news.

I was wondering that too

Your pay may deduct it, but UC does not so student loan if it makes mathematically more sense is the problem not the pension.

Look at the amount on the UC statement and the amount on your wage slip, what is the difference between it, if it is £100 it is the student loan which is the problem not pension.

Like I said the system has the figures for gross pay, tax ni and pension, it deducts them and does not deduct any third party deductions that are deducted off pay. The figures are not given because it does not use them.

I had no idea the cut off for UC was so high! I need to look into this.

It’s quite possible to get some UC when you’re earning over 40k if you have children plus childcare costs/ rent costs. People get quite upset about it but you get a fraction of what you are paying in tax/ni.

UK is fairly unique in the West in not giving some form of tax reduction or benefit to those with children. Instead we have a convoluted system where the government take the away and then gives a bit back after jumping through hoops.

Im constantly telling parents to apply for UC.
This is a common misconception.

If we were not paying for childcare, we wouldn't be entitled to anything.

We are get between 0-£100 a month depending on what my husband earns (he's self employed).

I've been claiming UC for years as a single parent and they've never taken my pension contributions into account as income.

Do not be embarrassed about accessing help that is there! Such a stigma around it because of what people say about it! They can't factor in your pension though 🤔