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'.

It's why UC is often a private landlord and/or childcare subsidy. Essentially the government give people money through UC which then goes back into the system through childcare payments (which could be managed through cheaper childcare anyway) and in the case of private rent it goes into the pockets of private landlords, which many are Tory donors themselves (or party members!)

State funded childcare and rent control programs and more social housing could see a lot less people on UC but obviously unpopular policies (especially rent controls and more social housing) plus of course wages rising properly in line with living costs and inflation.

It does seem utter madness that people are paying a chunk of their money on tax and student debts, only to then need to claim benefits though I agree

Ask the OP this question, they pay "millions in tax" so assume they must employ people as their too busy to look up information "while paying millions" so some low paid person must be chauffeuring them around, preparing their cavier.

Why not just ask one of them in person

lol why bring me (and my 'millions') into it? please answer the q. I thought it was a fair question to you! not to me!

People dont have to answer questions just because you demand it

And you brought your millions into it, if you dont want people to mention them, dont mention them youself in the first place 🙄

So too busy to look up basic info but have time to decided to research on Mumsnet😂

Then ask about "free houses"

This is going to blow your mind - you get free food at a foodbank

No, the maximum you can get is your local housing allowance rate which is determined by the area you live in. It is based on the 30% comparable cheapest properties in your area e.g. the 30% cheapest one bedroom flats. Our local one is £408pcm for a one bedroom flat. If you are single and below 35 years old, you can only get a maximum of £332pcm. You never get more than your actual rent.

I don't know where all the flats are for that price though. Even the housing association ones are more than that.

Your pension contributions are not taken into account as you have a choice whether to pay these or not.

The 16 hours rule was on the old tax credit system, UC is different.

The person earning £600 with a mortgage would have full UC entitlement.

If they earned £1000 instead they would lose £220 in UC and gain £400 in wages so would be £180 better off.

If they earned £1500 they would lose £495 in UC but gain £900 in wages so would be better off by £405 overall.

UC is designed so that you are almost always better off the more you earn.

https://www.entitledto.co.uk/help/universal_credit_surplus_earnings

Here is an explanation to the £2500 rule.

Millions in taxes. Here we go again. You're not going to tell us what you earn and what you do to pay these millions in taxes, are you?

Numbers are here

https://www.gov.uk/universal-credit/what-youll-get

How terrible. Let's stop that so that houses can rot and no one builds them.

Wow, companies from all over the world must be rushing to the UK to exploit this!

Oh! They arent because what you have said isn't true.

No you get the local housing allowance. If you are in an expensive area you have to make up the difference.

Is that you, Rishi?😂

I know - I was declared unfit for work by the DWP.

I didn't have an income.

I don't have a mortgage.

HTH.

I would ask are you JK Rowling, but she has always said she is happy to pay her tax for the greater good.

If you weren't working you and you were assessed by DWP as unfit for work you would have definitely been entitled to at least some UC if you pay rent, unless you have capital over 16K.

At the very least you should have had contribution based ESA if you had been working previously.

People aren't always aware of the help available, which is why so much benefit goes unclaimed.

You've misunderstood. This is not "£2.5k is the limit." It's 'if you earn so much that after all your UC is removed due to earnings, you still have £2.5k or more income remaining, we'll carry that excess income over and apply it as income to your next UC assessment period.'

Not really.

You state you have been declared unfit for work, yet you work full time hours from your bed.

Presumably these full time hours are voluntary/unpaid because ......

... you also state you are not entitled to UC and mention only your husband's salary.

Does this mean he claims UC for you as a family unit ie you have no claim in your own right due to him claiming on your behalf?

Tbf, your clarification has offered no clarity. I'd suggest speaking to a welfare rights officer because you seem confused and may be entitled (as a family unit) to some benefits.

HTH

Doubt you would get anything. I earn much less than that and don't think I'd qualify

The deduction is 0.55 per £1 of your net wage, not £0.41 per £1 of your gross wage (that was tax credits).

Essentially, if you are single, over 25, no health issues and earn £2500 after deductions, you will start getting UC once your allowable rent is over £981.55 pcm.

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

You realise that this won't cover rent and childcare for many???

But don't forget that if you are under 35, single, with no children, you will only be eligible for a single room in a shared house, so the LHA will be much lower.

I’m a band 6 (not nurse) and get £2530 net as I think (salary recently went up by £100/month so think this is why) I’m on the top step of the band and receive outer London HCAS.