UC salary threshold is £2500 pmc

[Reallyxx]

On a separate thread, I was asked to google this. So, I have.

Quite many people earn £2000-£2500 pcm that they should be able to live on. So why are there UC benefits for that group?

So more than half of the population is on UC?? I am aware gov has driven wages down over the years, but it seems the net result is of 'more' people being on benefits.

Anyway, why not just 'not tax' these groups? As it seems like people pay 'some tax from their income that is £2500 net' whilst being entitled to 'benefits'.

From Gov website:

"If you earn £2,500 or more over your earnings limit If you earn £2,500 or more over your limit then:

• you will get no Universal Credit
• the amount over £2,500 will be carried over and counted as earnings in the next assessment period
• you are said to have ‘surplus earnings’

This could happen if you’re self-employed or get a bonus, for example."

A lot of UC goes on housing element, so it goes towards paying rent.

Someone on £2k a month where I live would easily be paying half that on private rent.

So the net result is that pp on income of £2500 pcm are getting free accommodation on London/ England?

£2.5 k is £30k a year. That's before tax and NI. There's also a taper - so it isn't as if you get £megabucks at £2,499 a month and £0 at £2,500.

What you get also depends on whether you have dependent children or not. The situation is so much more complex than your depiction.

I used to get the princely sum of £34 a month in tax credits in 2018 because I earned just under the threshold. I was a single mum raising two teenagers by myself with no financial support from my husband because he was dead. Life of Riley, it was.

Universal credit it made up of many elements which are added together

single person/couple element
child/chikdren element
disabled child element if applicable
housing element

all of this is added together and then reduced by 0.41p per pound that you earn over a set amount.

It is done this way to make it beneficial to work and increase your earnings, it doesn’t make sense for people to only work 16 hours or whatever it used to be on tax credits because you don’t just lose all of the benefits like a cliff edge. It is to encourage people to work more.

And landlords are getting rent in their pockets.

Helpful explanation. Thank you. I was made to 'google' as if it was all laid out somewhere online.

So if you are single, no health issues and no kids, and you earn £2500 pcm, how much are you entitled to in UC?

No. They will get the local housing allowance rate. In many parts of the country that doesn't cover the rent or anywhere near. In my area of the SE there are zero houses or rooms to rent at this rate and if you have dependents the gap between the rate and what will you would actually need to pay widens . People have to top up the difference. (Hence the huge numbers of people, unable to afford this, declaring themselves homeless).

Depends. Why don't you put that amount

Well, if they were made homeless theyd also get "free" accomidation so what do you suggest?

Help people with their rent whist they live in their rented accomidation.... or dont pay it, let them become homeless and then spend double that amount on temporary accomidation, storage ect?

I was made homeless after fleeing DV.... the hostel i was in, with my 8 month old baby and 2 year old cost £230 a week. The temporary accommodation I moved to after a few months cost £200 a week

A private rent after 2 years? £145 a week

So if you are single, no health issues and no kids, and you earn £2500 pcm, how much are you entitled to in UC?

Fuck all.

Into a benefits calculator. FWIW dd's take home is a smidge over £2k a month, she lives in London and isn't entitled to anything.

"So if you are single, no health issues and no kids, and you earn £2500 pcm, how much are you entitled to in UC?"

Nothing.

I don’t make £2500 a month as a band 6 nurse.

So does someone get that whether they live in a cheap area or expensive area for rent? Like someone with the same situation but opposite ends of the country would get the same money even though one had more outgoings?

Do you understand this is not saying if you earn over £2500 it is explaining what happens in the event you earn £2500 over your earnings limit in one month.

The earnings limit is more than £2500 per month as my dp and I earn more than that between us but we get UC.

No because their rent element would be less.

You wouldn’t be entitled to any universal credit in those circumstances.

Also once you have earned a certain amount you are penalised by universal credit. They take 60pence off every pound you earn over their limit. If its a temporary job you have to wait for two months before they give you anything as the last months wages is accounted for. So basically a month with no money.....

This government backs all rich business owners and therefore allows them to pay employees poor salaries which then are topped up by the taxpayer ( yes.you and me ) via UC.

The system is there to give huge profits to employers and make the taxpayers foot the bill

Nails it.

No. It is called Local Housing Allowance because the housing market is divided up into areas called Broad Rental Market Areas, and you get the rate for the one you live in.

So you get more in London than Liverpool, for instance.

A band 6 with under 2 years experience earns 35k. That is over 2900 a month

Gross maybe, but not net after income tax, national insurance and pension contributions are deducted.

@Reallyxx nothing
I earn min wage and no UC