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Salary Sacrifice and Universal Credit - Advice please.

4 replies

ClearFruit · 15/07/2024 14:06

I work FT and am also in receipt of UC, as I am a single parent to three children. If I get a car through my work salary sacrifice scheme, which takes payment before tax from my wages, will this affect my universal credit, meaning the amount will increase? When I receive a bonus, which is every three months, my UC award for that period is reduced. I am wondering if the reverse will be true.

Does anyone know?

OP posts:
gohomeroger1 · 15/07/2024 15:55

No UC uses your earnings before salary sacrifice is deducted

ClearFruit · 16/07/2024 09:39

Really? I asked on my journal and the (admittedly rubbish) reply seemed to suggest the opposite.

OP posts:
Danikm151 · 16/07/2024 23:58

UC goes off take home pay. with salary sacrifice if your take home pay is slightly higher then your UC will be less. If it’s less then Uc will be higher but I’m sure there might be a part on the Uc forms about salary sacrifice for a car etc - double check

Swollenandgrouchy · 17/07/2024 00:04

I think it depends how your employer enters the salary sacrifice into their payroll software eg whether they treat it as a Benefit in Kind, or not. If it’s entered as. BiK then my understanding is that UC would not increase as gross pay is not reduced.

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