Maximum earnings to claim universal credit

[Rosie2020]

Currently on furlough and my salary has been cut by about 50% . My industry is taking a while to get moving. What is the maximum amount you can earn to claim UC? Furlough is set to 40k. After tax I am receiving 2450 odd. I can’t afford to live on this in London. Furlough is also being reduced soon and I suspect my employer is milking the system for as long as possible.

I did phone the helpline and they said to fill in the form and if it gets rejected I can update it at a later date e.g when furlough decreases or I’m made redundant etc etc

Depends how much rent you pay and how many children you have so varies for everyone.
Universal credit is deducted by 63p to every £1 so even if you were entitled to some it may only be around £50.

Apply anyway and see where you go, hopefully it works out in your favour.

There’s no way of knowing until you receive your first statement. It’s worth putting in a claim and just seeing though

I’ve just filled out the form online.

I was not going to go for UC however my employer is milking the system. 50% of staff on furlough and clients paying still at 100% for services. Hardly anyone working and those that are are being run ragged. The company gave no notice of pay reductions or furlough. There making up the rules as they go along. Hopefully UC will kick in when furlough drops as I can’t see my employer paying out for people to work min hours.

I don’t trust my current employer.

I’d be surprised if you can get uc with a salary of 40000 do you have children? Hope it works out.

I very much doubt you can get UC on 40k.

Have you tried a UC calculator and put your details in? (Rent /number kids/childcare/ disabilities etc.)

Not at all likely on 40K.

You won't get UC on a salary of £40k. No way. On a minimum wage salary you wouldn't get topped up to anywhere near what you are bringing in a month. UC doesn't give you enough to live on.

Your salary pre furlough must have been pretty high. Don't you have any savings? I managed for many years in London on less than £40k, so while it might be difficult it is possible.

Maybe people here could look at your outgoings and help?

Do you know how low UC rates are? Google them and you willsee they are a lot lower than you are earning.

Look up the level of rent UC will pay for a private rental in your area, this will depend on whether or not you are under 35, disabled or have children and use that figure to work out any entitlement.

You can use a benefits calculator such as entitledto to see if you would be eledgable, but I doubt it.

My understanding of the reduced furlough is that companies would have to pay the difference, so your wage shouldn't drop further.

If you are struggling, check out money saving expert website, and particularly the money makeover section for ways to reduce outgoings.

Thanks everyone. My normal salary is 80k basic.
However I was then told I’m on now on furlough and it dropped. I live on my own and rent privately at 1.5 K a month. I lost my job last year because of a disability. My employer didn’t want me working at director level. Currently in litigation with former employer. I have no savings as my deposit for rental is held in a scheme and I am paying litigation etc which is ongoing. I can’t go into to much detail on here just in case someone works out it’s me. Prior to loosing my job I had savings but don’t know because I had to use them to live on whilst I found another job. I work in a niche area and it took 4 months to find a new job etc

If you are being paid £2450 per month and your rent is only £1500 you have plenty of money to live on as a single person. Even if you had a child I doubt you would be entitled to any universal credit given you have £950 left each month after paying your rent.
£950 is significantly higher than universal credit says you need for a basic income after rent costs.
Do you realise how little universal credit gives for people to live on ?

This won't go well for you OP if you're saying you have nearly £1000 a month left for bills and food and want UC as well...

What will you spend the £950 on?

Do you have any idea how most people live ?

It looks like you have some lifestyle choices to make, OP

To help put things in perspective OP. I am a single parent living in the Midlands. I was earning £40k basic pre pandemic and then I lost my job during lockdown. I have a toddler and I get £1150 a month UC. This is my full entitlement and I have to live on this and feed my son.

You honestly will not get anything on 40k.

What LA do you live in and what is your age? Also do you get any DLA or PIP as you mentioned that you were disabled. It will depend entirely on how much housing costs you might be eligible for as to whether some UC might be payable.

Thanks everyone for your advice and opinions.

UC is for people on low income, usually less than half you are receiving. That's a huge salary, if it isn't enough your outgoings are too high and you need to look at cutting back, or moving? I couldn't afford to live in London, either.

It will depend entirely on how much housing costs you might be eligible for as to whether some UC might be payable.

Not on 40k for a single person with no dependants it's not. LOL. LAH is set for the lowest 30% of rents and depending on age, covers only shared housing.

When is your tenancy up, Rosie? I think moving to a house share that's more affordable will be a step to consider.

Rent at £1500/month on 40k is still entirely do-able if you're frugal in other areas.

If you're over 25 the current standard rate for UC per month is £409.89 + allowable housing costs. The amount that would be deducted from whatever this total is would be 63% x 2450 = 1543.50. So, all dependent on allowable housing costs in London.

In Wandsworth the LHA for a 1 bed is around 297 pw so 297 x 52 / 12 = 1287 per month. 1287 + 409 = 1696 less wages of 1543 would mean UC of 153 per month.