Spousal Maintenance and Universal Credit

[MissedTheBoatAgain]

Searched this on MN and could not find anything. Searches on internet seem to be producing different conclusions.

So here is my question:

Does Spousal Maintenance affect Universal Credit?

Reason for asking is that Ex has indicated that they wish to have the Consent Order (made in 2016) re-assessed on basis that her Spousal Maintenance will reduce other benefits on a pound for pound basis. So she wants the Spousal Maintenance to double so that she has same total in hand per month.

Wording of the Consent Order was that it was Final and Binding and neither Party would have any claim against the other in the future. Guess if Courts though that there had been a significant change in circumstances that could be put aside?

Seems harsh that changes in legislation become the paying partner's risk. However, at same time if Ex was to lose her SM it would be a big drop in income for her and the Child.

A search on google seems to suggest that universal credit is reduced for spousal maintenance.

The consent order stops your ex making new capital claims but she can apply to have the amount of spousal maintenance varied.

The simple answer is that UC is reduced for spousal maintenance. However, as far as your ex is concerned it is not as simple as that.

If her circumstances have changed and she is making a new benefits claim the amount of UC she receives will be affected by her spousal mainteance. However, doubling spousal maintenance won't help her. Her UC would simply be reduced to match any increase in spousal maintenance, leaving her in exactly the same position.

If her circumstances have not changed and she is moved onto UC she will be entitled to transitional protection. This will top up her UC entitlement to match her previous benefits so that her income is not affected by the change. The transitional protection lasts until either her UC entitlement matches her existing benefits or there is a change in circumstances meaning her benefits are recalculated. If her benefits are recalculated we are back in the position I outlined in the previous paragraph - increasing spousal maintenance will simply result in her UC being reduced.

Thanks for the reply. Ex has moved address recently. Whether that is considered a change I would not know?

Wonder why Government has picked on Spousal Maintenance?

Wonder why Government has picked on Spousal Maintenance?

Spouse maintenance is income of the parent for the parent. It was always nonsense that someone in receipt of spouse maintenance of, say, £5000 a month would also qualify for tax credits. Similarly I don't see any justification in excluding child maintenance from the calculation (at least above a certain threshold) but presumably that would be too politically insensitive.

You have posted before about how much SM you're paying, and although I don't have the inclination to trawl through your other posts I do recall it was a few hundred pounds if not over a thousand every month. If your ex earned that income from working in a job do you think she should still get benefits as if that income didn't exist?

To Collaborate

Ex receives the following each month:

£400 Spousal Maintenance
£750 Child Maintenance
£318 Working Tax Credit
£277 Child Tax Credit
£90 Child Benefit
£540 from part time job 16 hours per week

£2,375 per month in hand.

That equates to an annual salary of £37,000 for someone working full time in the UK. Well above the National average I think?

Ex has never paid into the UK system as she is not a native of the UK, but obtained UK citizenship by being married to a UK citizen and residing in the UK for 3 years.

Worst of all is that what Ex receives from UK Government is almost the same as my father's pension after he worked the maximum 40 years for the NHS!

Child Benefit is means tested and reduced if one person's income exceeds £50,000 (it should have been based on total household income in my view).

Maybe Tax Credits need to have an upper limit too whereby they are reduced so that those RP's who do not have high earner Ex's, but are facing the same living costs as those RP's who do receive SM and a generous CM, can receive a bit more? ie Tax Credits are based on NEEDS.

Certainly if someone received SM of £5000 a month it would not be fair that they also received the Tax Credits.

You do realise the vast majority of your ex's benefits are in fact for your own child, don't you? Would you gladly pay her the amount she gets in benefits so she can afford to come off benefits?

Would you gladly pay her the amount she gets in benefits so she can afford to come off benefits?

No I would not. Reasoning is;

I am not often in UK and hence I am no burden to the UK Government. However, they collect Tax each year from; Rent. UK Dividends, Trust Income, etc.

I must UK Government's dream. I cost them nothing, but they receive Taxes every year.

I am no burden to the UK Government.

Your child is.

Taxes I pay per year exceed what Ex receives in benefits.

Most of what I have earned outside the UK has been spent in the UK (property). So I am a net importer of capital which creates wealth for the UK

Taxes I pay per year exceed what Ex receives in benefits.

I'm sure you said in an earlier thread that you live and work abroad. The wealth you return to the UK is not shared around. You spend it on yourself. You do not pay taxes on it.

You spend it on yourself

Ex wife got the benefit whilst I was working outside the UK in deserts that were loaded with land mines.

Ex wife got the benefit whilst I was working outside the UK in deserts that were loaded with land mines.

So? Not paying UK taxes were you.

Local taxes have to be paid in Countries where I work. Not many places in the World are Tax free. Those that are tend to have high living costs (UAE for example).

My UK source income is subject to UK taxes which are far in excess of what Ex receives in benefits. Most of foreign earnings have been spent in UK on; property, cars, council Tax and day to day living costs for family. This creates employment for those that; build houses, sell cars, sell food, sell clothes and provide utilities. £35K spent on Legal during divorce fees came from foreign earnings too.

So I am a net contributor to UK.

End of Political Broadcast on behalf of the Expatriate Party. Hahaha