Universal credit / Tax Free Childcare

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Hi, wondering if anyone can advise at all. I've recently done two benefit calculators and both have said we would be entitled to some UC, which surprised us. One said it would be about £300 a month and another about £175 a month, so quite different amounts, and this doesn't include childcare which we currently pay for for two kids (although one will start school in September and we will then only need some limited holiday cover).

My earning situation is complicated, I work 3 jobs and do differing hours each month, and one of my employers often doesn't pay me for a few months at a time then pays me 2-3 months wage in one month. From reading around UC it seems that if you earn too much for UC one month, you're automatically chucked off it and you'd have to reapply again straight after, is that correct? As I assume that would happen to us in a month where I get 2-3 months wage in one go?

I also know we can't get UC and tax free childcare, we currently use the latter. Is the childcare support reduced based on wages too, like how can I cost out whether we'd be better off under UC or TFC, as the calculators don't give you an estimate of childcare costs? Or is the childcare funding max figures the same for everyone on UC regardless of earnings?

And if we put a claim in, then get chucked off one month cos I get 2-3 months pay in one go that month, can I immediately put in a new claim and/or immediately re-start TFC for the following month or whatever? Or is that not possible?

Thanks if you read this all!

I think you get 6months that the claim is open. So if they calculate you have earnt to much for 6months they close your claim.
I know my partner earned to much one month but we didn’t re apply and we got something the next month he earned less.
if this makes sense?

So far as earnings are concerned the payroll figures your employer reports to HMRC when they run payroll are shared with UC. This means that, errors and cock ups excepted, UC in each monthly Assessment Period (AP) reflects exactly what you've been paid. This means that where earnings are up/down for hours, bonuses or whatever you should still get the right amount after any Work Allowance and the taper.

You won't be kicked off UC if you earn a bit too much in one AP. There is an excess earnings rule so that if you get a lot more in one month the surplus reduces what you get in the next AP. Is there any reason why the employer who pays irregularly has to do it that way?

You need to work out whether UC or tax free Child Care is best. It's one or the other presumably on the basis that you can only get one 'subsidy' at once. However as UC pays 85% of a ceiling there's usually no contest as to which is the best deal.

Hi thanks for this.

No, the employer doesn't have to pay irregularly, in fact they shouldn't be doing so at all but that's a separate long messy story.

About the childcare subsidy, is the 85 per cent figure for everyone regardless of earned income tho? Or does the percentage of childcare paid (up to the ceiling I understand) reduce based off earned income too?

The short answer is yes.

The starting point for calculating what you get is what's called Max UC; in effect the amount of money the law says you need live on. For a family of two adults and two children aged 10 & 8 that would be a couple's Standard Allowance of £578.82 and £584.58 for the kids (more if either/both get DLA) ; those are for living expenses. Further 'Elements' might be added for Rent, Ill health, caring for a disabled person etc. 85% of Childcare costs (subject to a ceiling) are one of those elements.

If you've got children you'll get a Work Allowance the amount depending on whether you get Housing Costs, with earnings over that reducing you max UC by 55p for every £1 of joint earnings.