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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be utterly bamboozled by how UC works?

24 replies

flowerdebate · 13/10/2023 09:19

Hi, please be gentle as I am not originally from the UK (though am now a citizen)

I plugged in my information for 'entitled to' website after reading a post on here about someone that worked full time and recieved UC monthly, which I didn't know was possible. I just thought it was something for people who were unemployed or extremely low income, I didn't realise it was more complex than that

I'm completely struggling as my income doesn't cover my monthly outgoings now that I am a single mum and have to pay for full-time childcare. One child under one years old, I am the only legal parent and this won't change. My take-home is 3k pcm. Live in an expensive part of country (but a cheap town/neighborhood within living in a generally expensive part of country), rent is £1k, council tax, utilities, petrol, food, student loan repayment in home country, etc all take me to another 1.4kish monthly. Nursery bill is £1200 pcm (least expensive nursery in area as well). None of these things can be reduced within the next year- please just take word for it as it's not the point of the post. You can see immediately the problem, need 3.6k just to get by and this doesn't account for emergencies/one-offs, nevermind savings.

The website said I could get £600+ a month, which would be a godsend, but I also don't see how it's possible given I work full time with a well above average salary. Is it possible they really are looking at the bigger picture and see that because I'm a single mum, renting, and have high childcare costs I truly do need it? Seems too good to be true. I've fully read the UC website multiple times, searched on here for posts, but I still can't wrap my head it. Am I being unreasonable to think its too good to be true I could get help?

OP posts:
cadburyegg · 13/10/2023 09:24

The entitled to calculators often aren't accurate. You can always put in a claim and if you aren't entitled to it then you just wouldn't get anything.

But I know some single people can claim even if they are on "good" incomes, if they have high housing and nursery costs.

Original poster
flowerdebate · 13/10/2023 09:27

Thank you! That is good to know that the calculators aren't always accurate- maybe this one has gotten my hopes up
Maybe I'll try one of the others and see if it matches up. I'm hesitant to take the time putting in claim (and emotionally getting my hopes up) if its a total fool's errand/if there is something fundamental I'm missing about qualifying or not

OP posts:
Nonametonight · 13/10/2023 09:28

Universal credit is designed to make work pay. As a result, for people with high childcare and housing costs, it can be available to people on surprisingly high incomes.

KeepForgetting · 13/10/2023 09:30

It sounds like you should apply as you will be entitled to something.

Original poster
flowerdebate · 13/10/2023 09:32

Nonametonight · 13/10/2023 09:28

Universal credit is designed to make work pay. As a result, for people with high childcare and housing costs, it can be available to people on surprisingly high incomes.

That's amazing to hear! It is very different to my home country, where growing up the only people I knew that got monthly 'cash' from the government were people that were unemployed, extremely low income, or disabled. It's amazing if in the UK it's that different
It's not as if I haven't been living in UK for ages, it's just that my salary was (just barely) sufficient until I was a single mum with childcare costs so I've never learned about it. And the people I do know here that have been on UC, were indeed unemployed while they were on it, or working minimum wage jobs part time. Anyone I'm close enough to discuss finances with that is a higher earner are all either not parents, or parents but in a couple where both working)

OP posts:
Costalife · 13/10/2023 09:34

We are two working people who privately rent with two kids
Switched from tax credits to universal credit in 2022 and I've never had a problem with them and we get more money back than we did on tax credits to
I think UC is generally good for people who are working and renting

Olivia199 · 13/10/2023 09:37

As @Nonametonight said, it's built for this.

It's fairly easy to work out rough allowance yourself.

You can find out how much rent you'd be entitled to by looking up the Local Housing Allowance and putting in your postcode.
That'll tell you the amount paid for a 2 bed (which is what you're entitled to).

Then you can add on 85% of childcare costs up to £950.
Then add single person allowance which is £368.
Then one child allowance which is £269.

Once you've totaled that together you get what you're eligible for.

Then take your monthly take home pay, deduct £379 (as the first £379 doesn't count).
Multiply that number by 0.55.

That gives you your "deductions based on wage".

Then it's eligible amount, minus deductible amount and that's what you can get.

If you have savings over £6000 (including any capital/LISA accounts etc) then you'll have extra deductions for that.

If you have savings over £16,000 then you're not eligible.

Hope that helps!

HippeePrincess · 13/10/2023 09:39

Just put the claim in today it’s so easy online, they then backdate it to the date you applied.
it’ll be potentially the rent but most likely the high childcare. We have a mortgage so no help there, but when we added the childcare to the claim we got a high proportion back via UC.
ive always found the calculator fairly accurate, y here’s an easier and slightly more accurate one than entitled to but I can’t remember which one it is- sorry not helpful!

UpUpUpU · 13/10/2023 09:48

I was surprised too OP. I currently claim as I am a single parent and training to be a midwife.
I’m worried about qualification as currently I get most of my childcare paid for by student finance and don’t pay council tax. On qualification why salary will be very tight.
I filled in the calculator and it said I could get the 85% of my childcare paid plus another £400 towards rent, which would be absolutely life changing for me and my son.

I hope it is the case for us both.

id definitely apply OP.

Tambatamba · 13/10/2023 09:51

Nonametonight · 13/10/2023 09:28

Universal credit is designed to make work pay. As a result, for people with high childcare and housing costs, it can be available to people on surprisingly high incomes.

It doesn't make work pay in practice though. I know people who got a part time job whilst on UC who ended up with debts they are still paying off as a result.

I'm guessing if you work full time with a child in nursery it differs?

Original poster
flowerdebate · 13/10/2023 09:59

Tambatamba · 13/10/2023 09:51

It doesn't make work pay in practice though. I know people who got a part time job whilst on UC who ended up with debts they are still paying off as a result.

I'm guessing if you work full time with a child in nursery it differs?

Show quote history

Out of curiosity, how does this play out in practice- is it that the part-time job lowered their UC so much that they no longer could cover outgoings, so had to use short or long-term debt to cover the gap? But they didn't' want to give up working/career even though it was not financially as well off as UC with no job?

OP posts:
Original poster
flowerdebate · 13/10/2023 10:01

Olivia199 · 13/10/2023 09:37

As @Nonametonight said, it's built for this.

It's fairly easy to work out rough allowance yourself.

You can find out how much rent you'd be entitled to by looking up the Local Housing Allowance and putting in your postcode.
That'll tell you the amount paid for a 2 bed (which is what you're entitled to).

Then you can add on 85% of childcare costs up to £950.
Then add single person allowance which is £368.
Then one child allowance which is £269.

Once you've totaled that together you get what you're eligible for.

Then take your monthly take home pay, deduct £379 (as the first £379 doesn't count).
Multiply that number by 0.55.

That gives you your "deductions based on wage".

Then it's eligible amount, minus deductible amount and that's what you can get.

If you have savings over £6000 (including any capital/LISA accounts etc) then you'll have extra deductions for that.

If you have savings over £16,000 then you're not eligible.

Hope that helps!

This is extremely helpful, thank you. I am indeed already in a (smallish) 2 bed which is 1kpcm. And certainly not savings over 6k. I'll have a go at the calculations later today

OP posts:
Original poster
flowerdebate · 13/10/2023 10:15

Ran the manual calculation given by @Olivia199 and it indeed matches with the approx amount that the entitled to website had given- I'm still trying to manage expectations/hopes but I will put in an application!

OP posts:
Original poster
flowerdebate · 13/10/2023 10:15

UpUpUpU · 13/10/2023 09:48

I was surprised too OP. I currently claim as I am a single parent and training to be a midwife.
I’m worried about qualification as currently I get most of my childcare paid for by student finance and don’t pay council tax. On qualification why salary will be very tight.
I filled in the calculator and it said I could get the 85% of my childcare paid plus another £400 towards rent, which would be absolutely life changing for me and my son.

I hope it is the case for us both.

id definitely apply OP.

Fingers crossed for you!

OP posts:
Olivia199 · 13/10/2023 11:33

@fflowerdebate - Glad it helped! I've never trusted the websites but worked out early into parenthood how to calculate it each month which has relayed some anxiety when I've had different pay etc!

Olivia199 · 13/10/2023 11:34

@UpUpUpU - Just want to hopefully relieve some fear. I'm top of band 5, single parent and renting and I do indeed receive UC. It's tight some months but nowhere near as tight as I'd imagined! Good luck with your training.

Olivia199 · 13/10/2023 11:41

@flowerdebate - Also worth noting for others that it doesn't matter if you're IN a two bed. You could be in a three bed or a one bed. They'll still pay the rate for the 2 bed. If your rent is lower than the amount they pay though, they'll just cover your rent.

I was looking to move to a three bed when I conceived my second but sadly miscarried so that's no longer necessary. I'd have still only been eligible for a two bed, but I'd have gotten the same rent towards the three if that makes sense.

Devilsmommy · 13/10/2023 11:41

Olivia199 · 13/10/2023 09:37

As @Nonametonight said, it's built for this.

It's fairly easy to work out rough allowance yourself.

You can find out how much rent you'd be entitled to by looking up the Local Housing Allowance and putting in your postcode.
That'll tell you the amount paid for a 2 bed (which is what you're entitled to).

Then you can add on 85% of childcare costs up to £950.
Then add single person allowance which is £368.
Then one child allowance which is £269.

Once you've totaled that together you get what you're eligible for.

Then take your monthly take home pay, deduct £379 (as the first £379 doesn't count).
Multiply that number by 0.55.

That gives you your "deductions based on wage".

Then it's eligible amount, minus deductible amount and that's what you can get.

If you have savings over £6000 (including any capital/LISA accounts etc) then you'll have extra deductions for that.

If you have savings over £16,000 then you're not eligible.

Hope that helps!

That's the best way I've seen that written down and completely understandable 😊

UpUpUpU · 13/10/2023 17:37

Olivia199 · 13/10/2023 11:34

@UpUpUpU - Just want to hopefully relieve some fear. I'm top of band 5, single parent and renting and I do indeed receive UC. It's tight some months but nowhere near as tight as I'd imagined! Good luck with your training.

Thank you! That really does help, thank you :)

BookwormDadUK · 13/10/2023 18:30

I find the best way to navigate UC is to take some acid, smack yourself over the head with a frying pan, then dream up the most stupid thing you can. You're probably near the mark.

In all seriousness, I'd encourage you to ask Citizens Advice for help. It's free and they are experts on the utterly bizarre systems devised by the civil service during an away day to the moon.

BookwormDadUK · 13/10/2023 18:32

Although @devilsmommy seems to have cracked it 😀

Hellinthekitchen · 13/10/2023 18:39

BookwormDadUK · 13/10/2023 18:30

I find the best way to navigate UC is to take some acid, smack yourself over the head with a frying pan, then dream up the most stupid thing you can. You're probably near the mark.

In all seriousness, I'd encourage you to ask Citizens Advice for help. It's free and they are experts on the utterly bizarre systems devised by the civil service during an away day to the moon.

I don't understand the hate for UC? I put my claim in in August and it was really straightforward. Unless you are unable to evidence your rent or childcare, I don't see how you could be experiencing difficulties.

BookwormDadUK · 13/10/2023 18:46

Hellinthekitchen · 13/10/2023 18:39

I don't understand the hate for UC? I put my claim in in August and it was really straightforward. Unless you are unable to evidence your rent or childcare, I don't see how you could be experiencing difficulties.

Show quote history

In fairness, I haven't had to use it much except for a brief redundancy and it was quite the shambles. Contradictions galore from the same person one week to the next. I won't bore anyone with the details but gave up entirely and rode it out til I started a new job.

Also one of our good friends is very senior in DWP and sweet Mary the stories she tells us, makes you wonder they can spell DWP sometimes.

louloulour · 13/10/2023 18:47

Speak to Citizens advice. They can do a full benefits check with you and then if they believe you are entitled to anything, they'll help you fill in the forms as some of them, particularly PIP for example, can be so convoluted

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