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Universal credit when working?

5 replies

seamonkeys · 30/03/2022 09:22

I recently separated from my partner and we have a 5 year old and 6 month old. I've been claiming universal credit while living with my children at my parents house.
I've been offered a part time job of 2 days a week.
Will this affect my universal credit? I don't really understand how it works.
Thank you

OP posts:
rainbowandglitter · 30/03/2022 11:13

@babyroobs is good at these questions Smile

AwkwardPaws27 · 30/03/2022 11:16

Try the Entitled To website, it has a calculator. Your UC will reduce in relation to your wages but they don't take the equivalent amount so you should be better off working (theoretically at least!).

Babyroobs · 30/03/2022 12:14

@seamonkeys

I recently separated from my partner and we have a 5 year old and 6 month old. I've been claiming universal credit while living with my children at my parents house. I've been offered a part time job of 2 days a week. Will this affect my universal credit? I don't really understand how it works. Thank you
The first £553 that you earn in your monthly assessment period will not affect your current Uc amount. This is because you have children on your claim so you get a work allowance meaning £553 is disregarded. Anything you earn above £553, then your Uc will be reduced by 55p for each pound you earn above £553. If you need help with childcare costs once you start work then that can also be paid as another element of UC.
seamonkeys · 31/03/2022 10:23

Thank you very much! I think I'll earn about £570 a month so should be better off working. Do you need to declare what you earn each month? As I'm just wondering if for any reason I do extra days or whatever some months.

OP posts:
Babyroobs · 31/03/2022 10:28

@seamonkeys

Thank you very much! I think I'll earn about £570 a month so should be better off working. Do you need to declare what you earn each month? As I'm just wondering if for any reason I do extra days or whatever some months.
You don't need to report earnings unless you are self employed. If PAYE, then your employer will notify HMRC of your earnings and Uc base your payments each month on those figures. they look at any earnings in your monthly UC assessment period and the Uc amount you receive seven days later will reflect those earnings. If you earn £570 a month then you would have very little deduction for wages from your total Uc amount, around £8 deducted so will be much better off as you will keep the Uc amount you already get plus wages. If you do extra days then your Uc would reduce by 55p for each additional pound you earn.
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