Universal credit question

[benefitcapped]

I'm currently receiving universal credit while unemployed after losing my job due to the pandemic. I have my payment reduced due to the benefit cap as I live in a high rent area. I hope to soon be back at work full time and not in need of any universal credit help but job hunting has been difficult. I am getting a bit desperate now as the benefit cap amount leaves very little money after paying rent.

I have started applying to part time supermarket etc jobs as there are more of these vacancies and I need something to tide me over until I can find full time employment.

I know the universal credit will be reduced by 63p per £1 of wages but does anybody know how this works with the benefit cap. Will it be reduced from the full amount before deductions or from the amount I receive after benefit cap deductions?

If you earn over a certain amount the cap will be lifted. The threshold to lift the cap is pretty low. The cap also includes child benefit. If you get a job and you have kids then you also get a work allowance as well of £293 that is disregarded before wages reduce your total amount. Sorry i know that still doesn't answer your question. I think they take off deductions then cap you if still over the cap but not 100% sure.

Thank you for replying. Single adult no kids so no work allowance etc. I've been offered a zero hour job which would only pay a couple of hundred a month. This would be very helpful to have while I keep looking for a full time position as I'm really struggling being capped.

But I'm trying to work out if it would even be worth accepting the job. I have over 200 deducted for the benefit cap limit so if they start the earnings reduction from the original amount there's no point starting the job. But if they start the earnings reduction from the amount I actually receive after benefit cap deductions then the job would temporarily help me make ends meet while I keep looking as I'm really struggling right now and trying to avoid needing to use a food bank

Iirc, you have to earn a bit over £600 a month after deductions to be exempt from the cap.

Also, if you'd been working and earned £600-ish pcm or more for the year before you started claiming, the cap shouldn't have been applied for the first 9 months of your claim. UC often seem to get this wrong and apply it straight away, so it's worth checking. It's called the "grace period".

I think it would be a good idea to run the figures through one of the online calculators, Entitled To is very good imo. That way you'll see exactly how working will affect you.

You need to be earning more than the equivalent of national minimum wage for at least 16 hours a week to not be affected by the benefit cap.