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Universal credit and wage increase

5 replies

Tgifridayxx · 04/10/2024 19:05

I've just been notified that, in my salary that's dues to be paid at end of Oct, there will be a pay increase (backdated to April 2024). So, potentially another £1000 in October's wage.
Although I was expecting the pay increase (NHS pay increment), I didn't realise it's actually being backdated to April. I'm worried about how this backdated pay will effect my UC.
I was the expecting the slight pay increment going forward, and was planning to log this as a change of circumstances with UC when the time came, but how do I report the back pay. Is it best to just expect UC to deduct it from next year's payments?
Anyone been in this situation?

OP posts:
piglet879 · 04/10/2024 19:25

If you go over the limit you'll get no UC for the next month- at least that way it's done and over! In my Trust you could spread it out but then losing some UC each month instead but you had to let them know in early September Smile

Tgifridayxx · 04/10/2024 19:34

piglet879 · 04/10/2024 19:25

If you go over the limit you'll get no UC for the next month- at least that way it's done and over! In my Trust you could spread it out but then losing some UC each month instead but you had to let them know in early September Smile

Thanks for answering. So would that just mean that I get no UC payment in November, and back to normal in Dec and after that? I wouldn't need to report the back pay to UC?

OP posts:
scotstarstrikestwo · 04/10/2024 19:47

My trust allows for the backpay to be in installments so it doesn't have as much of a negative impact on UC. You'll end up being roughly 300 worse off if they don't, at least for me

piglet879 · 05/10/2024 08:47

Yes, it would go back to normal the next month, UC is calculated on what you get paid each month. The idea is if you get paid more you don't 'need' so much in benefits Smile

Bromptotoo · 05/10/2024 08:57

If it's paid with salary in the usual way then UC will adjust automatically as they can see what the employer reports through payroll.

The taper for earnings is 55p for every £ so £1k back pay will reduce UC by £550.

I've seen PP suggest some NHS trusts etc will add the arrears in installments to reduce impact on UC but you may be too late now.

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