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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to be shocked at universal credit amount?

513 replies

oddsocksmatchifsamethickness · 01/12/2022 07:26

I've just become a single mum of one, husband gone. So obviously I want to bring my earnings up. I'm self-employed and will be doing so. But I put in a calculation for UC to see if I could get help while I sought new contracts. I'm self-employed. I earned 1K this month and did the calculation and it says I will get another 650 a month from UC.

Can that be right? It seems a lot, it would take my income up to a wage of 28K/year, but I only work 20 hours a week.

Is this what people get?

OP posts:
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8
Justthisonce12 · 01/12/2022 12:12

@ExhaustedFlamingo more a case of you need a good accountant and to make self employment viable. I wouldnt entertain being a sold trader, waste of time. But it sounds as though you’re not actually making very much money from this self employment so your comments don’t really apply to the rest of us that take it seriously.
I truly don’t give a fuck whether you reply to me or not. This is more for the wider boards benefit,
It’s actually not true at all that the self-employed are more penalised. You would be penalised in exactly the same way for an erratic income whether you were employed or self-employed. Your issue is the inconsistency. You can get round it up to you whether you can be bothered.

WishingWell5 · 01/12/2022 12:12

People with certain types of disabilities and especially disabled children should get more... but unfortunately there ARE lots of people who abuse the 'system' (and by system I mean the people who pay the taxes, because it's not the government's money, someone has to work for it)... but god forbid anyone dares to talk about it or question anything...
surely it's a fact that some people get more than they really should, and some people get less?

Ps I say certain types of disabilities because my OH is technically 'disabled' but has worked a manual labour job all his life ...

tiredfedupyawn · 01/12/2022 12:15

ExhaustedFlamingo · 01/12/2022 11:52

Just. because you don't see the "expensive extra needs" doesn't mean they don't exist.

A child with a disability is more expensive in a myriad of ways. It's not just about having to purchase expensive equipment.

And that "low paid part-time work" is often all that a parent with a SEN child can get because there's no suitable childcare and the child doesn't have the same independence/maturity as their peers. But I'm sure you'll come along to insist that's definitely not the case here.......

Show quote history

This! I get DLA and Carers allowance for my DS who is autistic. On the face of it he ‘doesn’t look that disabled’ (🙄) and he doesn’t need expensive equipment. But working full-time feels impossible as it’s sadly really hard to secure wraparound care for an SEN child which limits me massively. I have tried working just school hours but it’s incredibly difficult to then have EVERYTHING to do at home after school whilst trying to meet the care needs of a disabled child, deal with meltdowns and a million other things. Absolutely soul destroying and exhausting.

Thankfully the DLA and Carers payments allow me to be a SAHM (bar one day a week of part-time work) despite both children being at school. Maybe some see that as ‘unfair’ but honestly it’s the difference between our family suffering and not coping as a result of a disabled child in the household, it just makes life manageable for all of us including disabled and non-disabled DC.

In all honestly I’d rather be furthering my career now they are older and have the freedom to work more but I can’t.

CrossStichQueen · 01/12/2022 12:17

I just know the amount she earns, the amount of UC she receives and the cost of having most of her rent covered every month.

So if you know the amount of UC she gets and what she earns what is it?

If her rent is being paid her UC award will look like this:

Personal allowance £334
Having 1 child £290
If child is severely disabled £414
Housing costs £583
Child benefit £94

Total UC with no work taper deduction £1715 pm.
PIP at higher rate £680 pm

That still means she is apparently earning

CrossStichQueen · 01/12/2022 12:17

Pressed send too soon!

She must earn £

CrossStichQueen · 01/12/2022 12:18

£27,000 from her part time job to get the £55,000 per you you claim.

Tallerthanmost · 01/12/2022 12:22

thelobsterquadrille · 01/12/2022 07:32

£1650 a month is less than 20k per year.

Take home pay, yes. But to take home £1650 a month after tax and NI you would need to earn £28k approx.

BabyFour2023 · 01/12/2022 12:23

I can’t see how £1650 will cover rent, council tax, water, G&E, fuel, broadband and other bills, food for 2 people…. Surely it’ll be quite miserable?

Tangled123 · 01/12/2022 12:23

OP works half as many hours as I do but gets slightly more than I do by claiming benefits. She will also probably qualify for stuff I won’t like further cost of living payments, cheaper (free?) dentistry, healthy start vouchers etc and won’t have to pay as much in childcare costs as I do (and if she did, she can claim some back). I’m all for benefit claimants getting enough to live on, but it’s very unfair that you can spend all week in work and not have a lot to show for it at the end. (That isn’t benefit bashing, I claim greedy employers for that).

If I didn’t need work experience for my course, I would probably go part time as well.

bloodyeverlastinghell · 01/12/2022 12:24

Enouf · 01/12/2022 11:56

This is impossible. Try the calculator online, show me how you get there.

Show quote history

I'm sure it is possible remember the take home pay on £55K is around £3280 in Scotland a little higher elsewhere. DLA or PIP could be £700 a month if top rate. She said they are single so entitled to £334.91 (assuming over 25) + child allowance £290 (assuming born before 2017) plus £414.88 disabled child allowance plus 168.81 carers allowance. Tot that up and you are on £1908.60. Child benefit will take it to £2k

I could guess how they could make up the rest through some housing costs plus wages. £500 rent and earning £1kish a month would do it. Not entirely sure you can claim carers when working so that might be wrong but its in the ballpark.

People are often aghast at the salary equivalent figures but you wouldn't want to swap places would you?

DesertIslandCondiment · 01/12/2022 12:25

ExhaustedFlamingo · 01/12/2022 11:55

That's not how being a sole trader works.

The net profit of the business is what is classified - in law - as being your income. It's only limited companies etc that you pay yourself a "wage" and the profits of the company are separate.

Whatever the business earns every month IS your income, regardless of what account it's paid into. Not declaring that would be fraudulent.

Show quote history

I was just going to come and say this.

No need for @Justthisonce12 to say it's not rocket science as well, not everyone understands (obviously).

Sales - expenses = profit for a sole trader.

Tangled123 · 01/12/2022 12:26

Tallerthanmost · 01/12/2022 12:22

Take home pay, yes. But to take home £1650 a month after tax and NI you would need to earn £28k approx.

Show quote history

I take home just over £379 a week, which averages £1642 a month, and I earn £25k. I’m also on a slightly higher tax code and am paying back a student loan, so most people on £25k will be taking home more than me.

bloodyeverlastinghell · 01/12/2022 12:30

CrossStichQueen · 01/12/2022 12:18

£27,000 from her part time job to get the £55,000 per you you claim.

You're not taking into account the "equivalent to" a 55K wage take home pay is £3280 a month.

PurpleyPineappley · 01/12/2022 12:30

CrossStichQueen · 01/12/2022 12:17

I just know the amount she earns, the amount of UC she receives and the cost of having most of her rent covered every month.

So if you know the amount of UC she gets and what she earns what is it?

If her rent is being paid her UC award will look like this:

Personal allowance £334
Having 1 child £290
If child is severely disabled £414
Housing costs £583
Child benefit £94

Total UC with no work taper deduction £1715 pm.
PIP at higher rate £680 pm

That still means she is apparently earning

I don't know how the UC breaks down, but she is not a high earner. Someone's just posted an analysis of how it might work and it probably isn't a million miles off how it would break down.

Ohhmydays · 01/12/2022 12:37

Is this also to help with rent costs? Even then I would say that is still quite a bit on top. I make less than that a month and get 400(330 rent)from uc a month and I have 2 young kids

WishingWell5 · 01/12/2022 12:39

The problem is, it does 'pay to work' if you're a very high earner, but for the majority, low to middle earning jobs it absolutely does not. And of course the 'squeezed middle' are going to feel resentful, and they have every right to. Everyone's viewpoint and experience is valid.

Why should it be ok for some people to financially struggle more when working, than they could claiming benefits? And why can't tax payers question this? We should all be questioning it because it's not a good state of affairs.

softpilllow · 01/12/2022 12:41

@bloodyeverlastinghell

She won't be claiming caters allowance if she is earning £1k a month though?

bloodyeverlastinghell · 01/12/2022 12:46

CrossStichQueen · 01/12/2022 12:03

Changed username so it's not outing, but UC seems to be astonishingly high in some cases - my single friend with a disabled child (the child has no expensive extra needs, they have a learning disability & get PIP because of it) is now receiving the equivalent the take home pay of a wage of £55k a year with her UC income

How is this possible?
At higher rate PIP for daily living and mobility is only £8,158 per year and even with a over estimated UC award of £2,000 per month that's still £32,158 per year so are you saying she earns £1900 a month from part time work as if she did she would have the taper apied to her UC so her UC award would reduce.

Take home pay on £55K is around £3280 in Scotland a little higher elsewhere. DLA or PIP could be £700 a month if top rate. She said they are single so entitled to £334.91 (assuming over 25) + child allowance £290 (assuming born before 2017) plus £414.88 disabled child allowance plus 168.81 carers allowance. Tot that up and you are on £1908.60. Child benefit will take it to £2k

I could guess how they could make up the rest through some housing costs plus wages. £500 rent and earning £1kish a month would do it. Not entirely sure you can claim carers when working so that might be wrong but its in the ballpark.

If you earn £55k a year you pay nearly 1K in tax plus over £400NI. My ex earns £60k and by the time he has paid pension and student loan it's not much over £3K.

TigerRag · 01/12/2022 12:48

Not entirely sure you can claim carers when working so that might be wrong but its in the ballpark.

you can earn up to £132 a week before carers allowance stops

bloodyeverlastinghell · 01/12/2022 12:49

softpilllow · 01/12/2022 12:41

@bloodyeverlastinghell

She won't be claiming caters allowance if she is earning £1k a month though?

I did say I was unsure about carers allowance perhaps she earns £1250 a month or her rent is higher. My point was it's plausible as long as you remember that "equivalent to 55K" is less than £40K which is how the sums make sense.

CrossStichQueen · 01/12/2022 12:50

bloodyeverlastinghell

To claim carers you can work but not earn more than £132 per week so would not be able to earn £1k per month so the numbers still do not add up for the friend who has a take home pay of £55,000 per annum in benefits and wages.

ConsuelaHammock · 01/12/2022 12:51

It’s an excellent total for 20 hours work

CrossStichQueen · 01/12/2022 12:52

Also the friends rent is £7000 per annum as stated earlier so the most UC will pay in housing costs is £583 per month.

StressedToTheMaxxx · 01/12/2022 12:54

Hooverphobe · 01/12/2022 07:36

I work FT and claim UC - should I work 2 FT jobs so I don’t have to claim? What’s the deal here anti-claimers?

OP - yes, more than likely - plus other add-ins such as dentist/optician/uniform grants and a fire-hosing of cash if you’re in Scotland.

What fire hosing of cash if you're in Scotland?

skerd · 01/12/2022 12:55

Bullshit. Absolute bullshit. Sorry, but this is just not true.

I work in this area and there is no way one adult with one child would ever get this much, unless their rent was sky high (which OP says it is 400 a month), or they were profoundly disabled.

The numbers just do not add up.

If anyone wants to check how much they'd be 'rolling in it' on UC, then put your details into a benefits calculator and see. It will be way less than this, and hardly anything after rent.

Typical spam benefits bashing post.

I'll post figures if you want me to, that it would be impossible for OP to get this much.

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