Universal credit

[Rachel516]

Hello everyone, I’m looking to see if anyone is in the same position or knows much about universal credit. I’m currently working full time but as my income has increased my tax credit payment has gone down to £600 a month which covers the £529 nursery bill. It also costs me on average £180 a month to commute to work. I’m a single parent and my child is autistic and receives dla at the highest care rate. I’ve been considering taking some time out of employment and focusing on my son as things are becoming very challenging at home and I’m struggling working full time. I’ve looked into universal credit and the online calculator has totalled up to £1366.56 and I’d also be able to claim carers allowance. Is anyone on here claiming as a carer and not working through universal credit. Does this calibration seem correct. Im also in a private rent which is £575 a month and it’s totally that it would pay the full rent. Thanks everyone

How old is your child ? Were they born before April 2017 ?
Are you over 25?
Rent element of Universal credit would be based on the local housing allowance for your area.
If you claimed carers allowance then this would be paid separately to UC but then deducted from the total UC. You would however also qualify for a carers element.
The figure I have worked out based on your child being born After April 2017 and you being over 25 and your rent being fully covered is £1456.09 UC, but then if you claimed carers allowance this would be deducted as you would be paid the carers allowance seperately.

Hello thanks for replying. My son is four and I’m 24, I looked into the local housing rate in glasgow which I think it’s more than what my rent is so it covers it, the calculation that I got in the turn to us website it said standard rate £265.33, children £244.57, disabled children £414.87, carers £168.83 then underneath is says deductions £302.03 which I’m assuming would be from the carers allowance. Am I also right in saying you get a working allowance from universal credit that allows you to earn a certain amount before it effects your payment but don’t know if that would work because the carers allowance is classed as an income. Also does the child disability payment affect universal credit. Tbh it looks like I’m not any better off working 40 hours a week

I would suggest getting some advise from your local benefits office or citizens advice or similar. If you quit your job it certainly used to be that were considered to have deliberately made yourself unemployed, and couldn’t claim any benefits for 3 months. There is also the 5 week wait built in to UC to consider.

If claiming Uc, op would not be sanctioned for leaving a job as she can be classed as a full time carer and therefore has no work commitments.
op Yes the £302 is an averaged amount taken off each month for carers allowance. You are no better off financially by claiming carers allowance, but it does give you a better class on NI credits whilst not in paid work. DLA is paid separately and does not affect UC. Yes those elements all look correct assuming your son is on higher rate care component of DLA, and then as you say there would also be the rent element. You wouldn't get a work allowance unless doing some paid work but if you did do some part time work then the first £344 of earnings would be disregarded before earnings reduce your total Uc so people can be a lot better off that way.

Thanks so much for replying I will contact citizen advice on Monday. I’ve looked into and I have “good enough reason” from resigning from my job. I love my job so much and I’ve always worked since having him so I’d be gutted to leave but things are so hard at home and I’m having to put him into nursery full time he gets dropped off at 8 and I can’t pick him up to 5:30 and he’s having constant meltdowns and I cant
get him to leave the nursery without him being physical with me and the mornings times are a nightmare he doesn’t want to leave the house I’m always running late and it ends in tears on both parties.

@Babyroobs has given you good advice.

Could you reduce your working hours? You get 85% childcare costs on UC compared to 70%. It’s worth doing a calculation to see if you are better off on UC as you rent and have childcare costs.

I had a look on the income I’m on now I get £21000 a year and it’s saying I would get £1468.6 which seems way to much considering I’m on tax credits now and I’m getting £600 from them. I will phone citizen advice on money

If call the help to claim service. They can see if better off on UC.

www.citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/

i also recommend this calculator. You can see current tax credits award against potential UC award.

www.betteroffcalculator.co.uk/login

Your figures don’t surprise me tbh.

If the calculations are right I’ll be about £382 better off working 40 hours than not working but it costs me about £200 petrol a month to get to work so it’s not much of a difference. I’m in tax credit right now so will speak to them Monday. Thanks a lot

Something else to consider is that on UC there is no min hours you need to work to claim the childcare element you just need to be working. Is there any scope for reducing your hours or get another more local job even for a few hours a week. That way you could keep your son in nursery a few days or half days a week to give you some respite.

I am just concerned that if your 4 year old is “severe” enough to qualified for High Rate Care that would a tough gig to be doing 24/7 by yourself.

He still gets 3 days funded at his nursery so if I didn’t work he would still be able to go to nursery. I’m having a look to see if there’s jobs near me for the days he’s in nursery, I’m a support worker so it’s hard finding something with suitable hours but I’m sure the right one will come up

Thats good for both your sakes he would still be able to go to nursery & hopefully the reduced hours would make it more manageable too.

Hopefully the right job with less hours and less of a commute will come up soon.

Pension contributions are normally 100% disregard as income for UC purposes.
So, I am wondering if you could claim Carers Allowance and put it in a personal pension. I think it might possibly be disregarded as income, and you would not lose any UC, if not working? You would need to check that yourself (gingerbread charity helpline is a fantastic source of advice for this).

You would have the same amount coming in, but would also be contributing to a personal pension which would receive the 20% uplift in tax relief. It's worth investigating?

If someone claims CA it will be deducted £ for £ from UC even if the person decides to put all £69.70pw in to a pension as it is classed as unearned income. But, claiming CA won’t mean someone has less money.

@LargeLegoHaul Entitled to seems to contradict this?

'For Universal Credit all one hundred percent of contributions made to a personal or occupational pension are disregarded when calculating income.

Enter the full amount of any payments and the calculator will automatically work out the disregard'.

Yes, pension contributions are disregarded from earned income, but carer’s allowance is unearned income so still deducted £ for £ from UC. So, where the claimant’s only income is from CA it isn’t disregarded. If you scroll down to the CA section on here you can see “Where it [Carers allowance] is claimed, it is deducted in full from your Universal Credit entitlement.”

If you do a dummy run through Entitled to’s calculator you will see there is nowhere to input pension contributions when the only income is CA.

Also, the Entitled to page your quote is from is linked to from the ‘i’ next to the pension contributions box on the net earnings page of the calculator. You would only see the net earnings page if you had said you have earnings. Someone whose only income was CA wouldn’t see that page.

I’m going to be doing agency care shifts making sure I earn under the work allowance £355 which is also under the amount you can make to carers allowance so I will be able to pay into a pension as I will be earning an income

@LargeLegoHaul Thanks for clarifying - I appreciate the explanation. I've learned something new!

Hi I was hoping someone could give me some advice please. I am on working tax credits and child tax credits. I have a disabled son who turns 20 in September. He is on high level pip. And still in education in the senco department at college. He has a EHCP plan. Both my tax credits will stop end of august. Tax credits have told me I will get a renewal pack sent next year for working tax credits only. Which should be for about £1100 for the year. So between august and when I can claim working tax credits again next year I won’t get anything from them. I am single mom i work 16 hours a week and claim carers for my son.I have my daughter who is a full time student at uni lives with me. I am really worried as my money is going to drop so much. I have a very small mortgage left on my house. I pay into my pension so I could claim carers. I also pay an unregistered carer to pick my son up when I am at work from college £30 a week. My wages are £465 every 4 weeks after my pension contributions deducted of about £198 per month. I have contacted a benefits advisor who has said I would not get anything on universal credit. I would be grateful of any advise. Thank you

@Doogie191 just for clarity and a cross check for a start point, what are you getting in Tax Credits now? If possible can you break this down between CTC and WTC.

Also, what is your age?

I'm surprised you've been told that @Doogie191 . I think you'd be eligible for about £300 per month.

£185.86 carers
£368.74 single persons allowance

Total: £554.60
Deduction due to earnings £255.75

Award: £298.85.

You would have a couple of months where you get no award because you'd have two payments in one month. But the month where you get no earnings you'd get the full UC, I think.

The poster wouldn’t get any UC because as well as the earnings deduction CA would be deducted £ for £ which will reduce the award to 0.

Also, you could ask for your DS to claim credits only ESA, then ask for a work capability assessment. If he is found to have Limited Capability for Work and Work Related Activity, and then he changes his course, he could claim Universal Credit in his own right.