Universal Credit - Backdated pay from former employer

[Namechange1943]

In February I started claiming Universal Credit. It’s the first time I have been on benefits (i am not very well) and would be grateful for advice.

This morning I received a payment into my bank from my old employers. I queried it as I haven’t worked for them since last year. They said it was a one off backdated payment/ pay award from 2022. I didn’t know I was entitled to anything so they are going to look into it - but for the time being I have it in my bank.

I informed DWP straight away - I know it means I won’t receive a universal credit payment this month but am worried about the wider consequences.

Does anyone know what it means for my Universal Credit claim? I am still sick (haven’t worked this year). Will they close my existing claim and will I have to submit new sick notes and/or go through the work capability assessment again? It was so stressful.

I wonder if it will also impact upon my council tax rebate.

So much stress - funnily enough for the same amount I receive in universal credit each month (not a lot!).

Thank you.

Are you sure you won’t get any Uc?
wages are deducted 55p in the £1
so if you got £1000, £550 would be deducted from your UC.

How much have you been paid?

Do you pay rent to a Landlord?

Have you been assessed as having Limited Capability for Work (or Work Related Activity)?

Are children included in the claim?

Thank you. I received a payment from my old employer of £1831.75

i have Limited Capability for Work and Work Related Activity. Including the amount I get for rent I receive a universal credit payment of £1,810.

At those numbers, you should still get some universal credit payment this month

You have a work allowance of £379 per month. That's the amount you can earn before any deductions

And earnings over £379 are deducted at £0.55 per £1.

So £1831-£379 =£1452
£1452 x 0.55 =£798 deductions from your usual UC = UC of £1012 this month.

You do need to let council tax support know about the earnings.

Thank you so much. That would be amazing.

I just don’t think understand the process at all (although I’m still not well so that may be the reason). The thought of having to go through all the health assessments/ getting medical reports again fills me with horror.

I will email the Council Tax people - again another service that I find difficult to navigate. I’m so afraid of doing the wrong thing and getting into trouble. Thanks again.

You won't need to go through the work capability process again. This payment will just be treated as earnings and will reduce your Uc for this assessment period by 55p for each extra pound paid above your work allowance. People can still receive LCWRA and work.

Hi I was wondering if someone could help me my partner worked self employed the company went bust , we have signed on to universal credit still awaiting our first payment while waiting he was paid 780 from his last job does this get took out our first payment and foes it all get took. Thankyou

Hi. Yes any earnings that fall in your assessment period will be counted. If he is self employed then he would need to report those. Your assessment period starts on the day you made the claim and runs for one month with your Uc payment date seven days later.

Ok thankyou, he is not self emplyed no more , so the whole 780 will be took out , thankyou

Not the whole £780. It will depend if you have a work allowance ( you will get this if you have kids on the claim ), and then after the work allowance is disregarded , the deduction happen on a taper. So there may be very little deduction overall .

Oh OK great thankyou yes there are 3 children x

Does anyone no the work allowance with 3 children. Thankyou

@123jayne it depends on if you receive housing costs.

www.gov.uk/universal-credit/how-your-wages-affect-your-payments

Yes I do