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Original poster

Maximum earnings to claim universal credit

82 replies

Rosie2020 · 30/05/2020 10:29

Currently on furlough and my salary has been cut by about 50% Hmm. 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

OP posts:
BuffaloCauliflower · 31/05/2020 07:46

Single person no kids*

lockdownbreakdown · 31/05/2020 07:52

The benefit cap in London is £23k! That is for families. You must be living in some whopping bubble to think that the government would top up your single persons income of £2500!!! Tory voter? Daily Mail reader? Seriously, those on universal credit eat the cheapest food, wear the cheapest clothes and dont have treats! Its a massive struggle. I lived in London as a single person on £28k recently. Shared housing is normal on that income and I had a great time.

SoloMummy · 31/05/2020 08:30

@Rosie2020

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
As harsh as this is. If you've not been able to make contingency plans prepandemic earning 80k,then that's really your issue, disabilities or not. No you would be entitled to uc unless your income drops extensively. And tbh its slightly obtuse to think that you should be, when there are people genuinely with nothing.
MagnoliaJustice · 31/05/2020 08:31

Money saving expert forums will give you good advice on managing your money. You won't get any financial help from universal credit, not on your salary

C8H10N4O2 · 31/05/2020 09:14

As harsh as this is. If you've not been able to make contingency plans prepandemic earning 80k,then that's really your issue, disabilities or not

The OP said she was out of work for several months before the pandemic started and is funding litigation (I'm guessing for disability discrimination) against previous employer. That could easily suck up many months worth of "contingency" savings, even for a higher earner.

OP you need to go through your situation one to one with a benefits/money advisor. I don't think PIP is taken into account if that is included in your monthly income.

SoloMummy · 31/05/2020 09:20

@C8H10N4O2

As harsh as this is. If you've not been able to make contingency plans prepandemic earning 80k,then that's really your issue, disabilities or not

The OP said she was out of work for several months before the pandemic started and is funding litigation (I'm guessing for disability discrimination) against previous employer. That could easily suck up many months worth of "contingency" savings, even for a higher earner.

OP you need to go through your situation one to one with a benefits/money advisor. I don't think PIP is taken into account if that is included in your monthly income.

If your salary is £80,000, then after tax and national insurance you will be left with £54,936. This means that after tax you will take home £4,578 every month, or £1,056 per week, £211.20 per day, and your hourly rate will be £38.45 if you're working 40 hours/week.

Regardless of outgoings, and previous history, anyone earning 4.5k a month should have put some contingency plans in place. Really harsh, but being disabled she shouldnhave been even more acutely aware.

SuperMedium · 31/05/2020 09:21

Rosie2020 look at switching your litigation to a no win no fee firm or at getting help or advice on paying legal fees from a charity connected to your disability.

Do you have credit card or other debt? Get an agreement in place to pause or reduce repayments until furlough ends.

You have more than enough to live on so it must be legal fees or debt causing you problems - that's what you need to concentrate on, not universal credit.

spotlighton · 31/05/2020 09:21

I put my legal costs into a 0% credit card as I couldn't afford to pay them at the time. Still trying to pay them off, but at least it gave me some breathing space.
You are probably not entitled to UC, but could claim PIP?

WhatwouldLangdo · 31/05/2020 09:30

I earn 12k a year max. I can only work part time due to disability but my health is getting worse because I'm working more than I'm really able to.
I get PIP because my health is so bad.

I get NO universal credit because they have not arranged a disability assessment for me in over a year and won't accept my PIP as proof of disability in the meantime. This means I'm not allowed to earn a single penny before they start the 63p per £1 reduction. This situation will also carry on for the foreseeable due to Covid and will be the case for almost every single new UC claimant who has a disability.

So no, UC is unlikely. A salary of 40k would feel like a lottery win to people on UC.

C8H10N4O2 · 31/05/2020 09:53

Regardless of outgoings, and previous history, anyone earning 4.5k a month should have put some contingency plans in place. Really harsh, but being disabled she shouldnhave been even more acutely aware

She said in her posts that she had contingency but several months unemployed plus litigation costs exhausted that contingency.

Litigation is expensive and could easily equate to many months net income. Its what employers count on when sacking people.

SoloMummy · 31/05/2020 10:05

@C8H10N4O2

Regardless of outgoings, and previous history, anyone earning 4.5k a month should have put some contingency plans in place. Really harsh, but being disabled she shouldnhave been even more acutely aware

She said in her posts that she had contingency but several months unemployed plus litigation costs exhausted that contingency.

Litigation is expensive and could easily equate to many months net income. Its what employers count on when sacking people.

I'm sorry but I really cannot get my violins out in this instance.
Totallycluelessoverhere · 31/05/2020 11:08

Having put the OPs figures into the benefit calculator on turn to us it seems she is entitled to a small amount of universal credit. It isn’t a lot and is probably equivalent to what she would have got in council tax support on legacy benefits. I don’t think it is right that a single person on £40k income should get anything in benefits but if she is entitled then she is entitled regardless of what we think.
She isn’t going to get a lot though - the calculation told me it was around £17 per week which may or may not be a little out.
If she has savings she is saving towards her legal costs then this will affect any universal credit and if the savings are over £16k she will get zero universal credit (and rightly so). Somebody who is adamant they need to keep their money for litigation costs is not in the hunger poverty category

Original poster
Rosie2020 · 31/05/2020 13:54

Thanks everyone for your advice and opinions.
I will post on here with the outcome.....

OP posts:
Original poster
Rosie2020 · 31/05/2020 14:07

I can’t respond to a lot of comments because of the ongoing legal situation. It’s very complex and I am unable to discuss on here. Thanks again everyone.

OP posts:
MintyMabel · 31/05/2020 19:45

Really harsh, but being disabled she shouldnhave been even more acutely aware.

WTF is that supposed to mean? That she should have expected to face discrimination?

EachandEveryone · 01/06/2020 11:20

My friend just had a phone appointment recently. She is on £35,000and was told by the advisor she's paid into the system for 25 years sges entitled to get something back. This is with no dependants so I guess if they are willing to help then roll with it.

trockodile · 01/06/2020 11:34

As far as I understand from your posts, you are furloughed so not doing any work at all for your employer? Can you find another job doing anything? Driving/supermarkets/carer/tutoring/government track and trace etc? Even a few hours would maybe help?

Totallycluelessoverhere · 01/06/2020 14:12

eachandeveryone sadly entitlement isn’t based on how many years you have paid in. It is based solely on your current income, savings and rent and council tax bills. If your friend is entitled to universal credit on a salary of 35k and she is single then her rent must be high. I have no issues with somebody like your friend claiming what they are entitled to but it isn’t factual that she is entitled to a top up based solely on her years of contributions.

PineappleUpsideDownCake · 01/06/2020 16:08

Surely a couple with no children on 35k isnt entitled to UC?!!?

carben · 01/06/2020 16:57

Surely a couple with no children on 35k isnt entitled to UC?!!?

Usually not but sometimes yes. All depends on allowable housing costs and savings. Just because you don't believe it could be true, doesn't mean it isn't. Having said that in most parts of the UK with that salary and no kids you would not get UC.

PineappleUpsideDownCake · 01/06/2020 17:09

We were on a bit less, with 2 kids at one point and weren't entitled - so genuinely surprised!

highmarkingsnowbile · 01/06/2020 17:55

Is it really likely a single person on that wage with no dependants will qualify for the £800/month she thinks she will to pay her rent? And savings, you actually can't say, 'Well, I need them to pay court costs'. Hmm

blubellsarebells · 01/06/2020 18:22

Get another job while furloughed if your contract allows, since you said they didnt put anything in writing i can't see this being a problem for you.

Nic76638 · 04/06/2020 17:35

Hi there could someone try and help me out please, I currently live with my partner and 5 children, he works away normally Monday to Friday and is self employed, I don’t work at the moment, Iv just completed level 1 and 2 teaching assistant course, my youngest is due to start school September so I’m hoping to start a new job as a teaching assistant in September to work around the children being at school as I’m on my own all week and have no help with childcare, due to Covid my partner has no work and we have only had tax credits to live on which has been enough to cover our rent, he wasn’t entitled to the Self employed grant as he only went self employed last September so didn’t submit 18-19 tax return, everything iv tried to see if we can get any help keeps going back to uc but I’m worried to claim incase we are not entitled then I lose my tax credits aswell, he would normally bring home £490 a week, is this too much money to claim uc, I have done calculation and it says we would get £800 per month does this seem right, thanks in advance

okiedokieme · 04/06/2020 17:46

I couldn't claim a penny despite my income falling to £950pcm (my mortgage is £950!) uc is very low

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