UC and your entitlement once you start working

[GoAgainstNicki]

If you start a new job, does your entitlement to UC ever change or will the amount get lowered? Or will all the relevant deductions be made based on how much you’ve earned during your assessment period?

I hope this question makes sense but I’ll explain my situation to give some context. I’m currently on maternity leave and will be leaving my role in the next few weeks as I want to work somewhere closer to where I live. I know I legally don’t have any work commitments if my youngest is under 2 so when I leave my job, am I correct in thinking that I have to update my circumstances to say that I’m not working? And there won’t be any sanctions?

I have a few interviews next week so hoping to have a job by the end of the month. My question is, once you start earning a steady income and you update UC to say you have a new job. Say you’re new contract is 24K. Will UC turn around and say ‘well we gave you an amount for your rent, being a single parent and having two kids,’ but now that you have a job, your entitlement will decrease by £500. Or will your entitlement stay the same regardless of whether you have a job or not and any deductions will be made month to month based on what you’ve earned?

Sorry for the confusing question but I don’t really understand UC so I don’t want to make any decisions that will impact me being able to pay my rent.

For us dh worked full time, we got the elements then his wages were deducted based on what he earnt during the assessment period, he obviously got a work allowance each month too,

He’s off work now (he’s unwell) I don’t work as our ds is disabled, and our entitlements are the same as when he was working.

So same allowances now as when he was working.

is that what you mean?

Your entitlement stays the same but deductions of 55p in every £ will be made for your earnings if they exceed the work allowance.
You won't be sanctioned for not working unless you are in the all work related activity group - which won't happen until your youngest turns 3.

The overall entitlement stays the same but the amount you get in your bank reduces based on your wages.
55p in the £ gets deducted but you do get a work allowance(amount depends if renting or no housing costs)
so for instance if your entitlement is £1000 and your wage is £1000(after tax,ni and pension)
£1000-£344=£656.
£656x0.55= £360.08
uc entitlement -£360.08=£639.20 UC

so your full income for the month would be £1639.20

Thank you guys, that makes a lot of sense! Yeah I completely understand how the deductions work and stuff, I just wondered about the entitlement but it seems that will always stay the same. That’s good news to me!

It seems you’ll always be better off even if you work part time (which is what I want to do) as you have your wage plus your UC amount

Yes deffo better off in work on uc, we were much better off when my dh was working as like you say you get your wage and your uc x

Yeah that totally makes sense, thank you. I hope your DH starts to feel better soon:)

Thank you 😊