Are you better off on universal credit

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Sorry another universal credit post but wondering has anyone had a positive experience with universal credit? After tax credit renewal we are now barely keeping our head above water and apparently will be better off on universal credit but wary?

Right the housing costs contribution is a deduction that is applied to every non-dependant in the property. I presume you have a child under 5 making you not liable for the deduction that’s why it’s zero.
The eligible housing costs are what has been capped in your area. So you will receive support up to that figure but nothing beyond it. So your rent is £700 but the capped level in your area is the £500 or so you have quoted.
You lose .63p in the £ for every pound earned beyond your £287 allowed monthly. So it taking all of that into account on a take home of £1480 (approx).
Your work element is £287
Child element £277 (for one child - additional £230 if you have 2)
So if you add it all up does that reach the £700 you have been quoted after you apply the .63/£? Because if it’s less (and I suspect it will be) you are definitely receiving the housing element.

It’s quite complicated!!

The difference between the figure quoted and what you calculate will be the housing element. If you register with entitled2 they will let you see a full breakdown of the figures (not sure if you have already).

Wowsers, you really got this!

Nope, no child under 5; I’ve an 11yo DD & a 7yo DS, DS being in receipt of DLA.
Just looked again at PDF I downloaded from entitledto (I did register :) ) and hopefully you can see the breakdown that I missed before! Clearly says housing on it! Haha! It certainly does say the amounts you state for child element plus £126 for disability (TC is £240)

That summary then takes away £575 for DH earnings^^ so it’s those minus £575 is what it says we’ll get. Which is double my current TC amount... I can’t trust it’s correct??

Gaaah! Sorry, ignore last post!! Wrong PDF, this is the correct one, the other one I made a boo boo on! So not double TC, knew I was going crazy!

Those 3 elements added up make your total UC. Then you take wages minus £287 x 0.63. That figure is the amount taken off the total UC.

Thanks @babyroobs, it’s starting to make sense now, with @zofloramummy & studying the pdf, I really am getting my head around it. Everything is absolutely correct, even down to the £50 I’ve earned this tax year (which, as I say, would stop with bank job only being very temporary). I can’t apply for it yet as hubbys current job is paid 4 weekly, so would need to wait until he starts his new job (paid the same day pcm), gets his first months wage with them then apply before his second wage, so prob wouldn’t be until September anyway. Obviously, this works outs £s up whilst I’m out of work. Bet it won’t once I get a good job. I’d prob be better off on TC then! Be too late tho, and we need the pennies now.

Having looked at it yes that looks just like mine did so it is the total amount you will get with no further deductions. Of course as you know any additional earning will increase the amount of deductions (but it pays to work doesn’t it? ).
I’d say if you are significantly better off (and some people are) then apply for it. Bear in mind the delay from application to first payment and that you will need to apply for an advance which you then pay back over a maximum of 12 months.
Also be careful and make sure you apply at least a week away from your DH’s pay date to avoid any issues with ‘double’ pay if it moves about a bit due to weekends and bank hols.
Do you use childcare? If so you need a monthly invoice from your childcare provider. You then upload the invoice and a screenshot of the payment leaving your bank account. It is then paid at 85% of the cost the following UC payment date. You will need their address and registration number to log them as a child care provider.

@Zofloramummy asking for my friend who has high childcare cost in summer lower in term time, so she pays a fixed amount monthly at the averaged out cost.
Do you know how that works with UC if Ste is essentially paying in advance for childcare that will be used in the school holidays.

We get given £1070 a month to live off and pay rent with on universal credit. That’s me, dp and ds. We were about £200 a month better off before dp lost his job (hadn’t claimed anything after ds was born and dp job was low paying). Oh and during the 6 week assessment period you get nothing but a loan than has to be repaid, even if it’s deemed that you were entitled to UC at that time. And we still have to pay council tax. It’s not fun.

@MyDcAreMarvel if your friend is paying in advance that’s fine as UC will pay it. They just need to see the invoice and the payment leaving the bank account and it’ll go in on the next UC payment. They are happy with advance payments.

How are you still paying council tax on that level of income? That’s 10% probably of your total! I see your DP has lost his job, are you working? How old is your ds?

So for marvel if the childcare provider shows on the invoice that they are paying in advance it’ll be fine. She can communicate via the online journal with her work coach to explain the situation if there are any queries. Tbh I pay a month in arrears and I think the system prefers you to pay in advance (because I have 2 months sitting in my bank!)

KcEliMa entitled to never puts the carers element on (I have the same issue every time I do a calculation which is why I do them manually now). Add £160 to your total. You get the carers element for any child on DLA regardless of working or recieving carers allowance.

We’ve been given a reduction. It’s still £89 per month. We can’t manage it. We will be going to a food bank by the end of the month. Hopefully by next month dp will have a job.

I’m not working as ds is 5 months. I don’t get maternity pay either. I have applied for a few jobs anyway as we’re desperate.

@kcelima yes i decided to go on uc. Been on it for just under a year and going well so far. The occasional admin blip, you just have to login and check your online profile every now and then.

Also. Very importantly. Start the switch about 10 days before your bills are normally due. As that will be your assessment date and you are paid 7 days after it every month

@Zofloramummy thank you, she had been very stressed about moving over due to this.

be my husbands wage, which I’ve entered yearly at £18500 with pension contributions at £1020 for the year

Can I ask about pensions? If I pay into a work pension do I deduct those payments when I enter earnings?

My employer does live time whatsit so my TC are calculated straight from my p60. Is the pension already accounted for as it’s deducted from my wage?

@bluebluezoo I know exactly what you mean. With our TC, pension doesn’t come into it. DHs pension is taken out before Tax & NI, as it’s tax relief’d so the number that goes to TC/P60 has this deducted already. Going through the UC calculator, I entered my husbands annual wage then the pensions contributions as they are, not his annual wage minus the pension as it stated to not do that. But I have checked it the other way too and it comes back the same.

@surfskatefamily thank you. Sounds very reassuring. And yes, been advised to work out the assessment date just so, in relation to pay day and bills. Suppose it’s about being one step ahead, and you have to be when estimating with TCs, so being clever with UC is similar

Pension question here too.

My pension is taken after tax and national insurance so my employer does not declare this to HMRC. With TC I have to wait until declaration to declare them.
When I am moved onto UC, how will these payments work due to the real time nature of the system?

I presume your employer is reporting your actual take home pay to HMRC and not the amount plus what they take for pension? If they are reporting the correct amount then it’ll be fine. Why are your employers doing it that way? Seems more complicated!

Ok, I have just a few last Qs if that’s ok?

*Does UC work like TC, where if your annual wage rises by £2500, you’re penalised? Or because it’s process through real time, is it just adapted each month? (DHs annual wage will increase by £4000 annually after training complete, I plan to get a part time job, hopefully earning around £6500 annually)

*Whilst I am unemployed, am I expected to seek employment & will this reviewed? Our circumstances could change quickly, DHs new job is 30miles away in the next county, we’re keeping options open to move closer to his work, so I have reservations about getting a job when we may leave with little notice. Therefore, admittedly I don’t plan to seek employment in the very near future. Also, am considering home schooling DS.

*During your assessment period, where other benefits stop (does this include child benefit?) I assume this isn’t back dated by UC? Therefore, would need to have the finances somehow in place to afford the 5 week period?

Sorry, meant to also add, I plan to gain my level 2 foundation qual in maths, as all school jobs require it and it’s the only qual I don’t have; another reason I wish to postpone employment.

Gaaaah! Knew there was one more thing..

*my earnings to date so far this tax year...do they come into it? As when we apply and have our assessment period, my current bank role will have ended, so I won’t be receiving an income at all when I apply.

Thank yous!