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Please Help. Universal Credit

12 replies

Sammijj · 06/01/2025 13:48

I merged to universal credit around 6 months ago and it's been complete hell that I'm at breaking point.
I managed to get a couple of extra hours at my employed job taking me to 18 hours per week on minimum wage, but that isn't quite enough for the £892 AET because I pay a small amount into a works pension. 4 week months I'm £90 below the AET. I was offered a small job on a self employed basis on top of my employed work which I was told at the jobcentre would be enough because I wouldn't be gainfully self employed it's just topping up. Even the self employed work coach told me it's all fine and I won't need anymore work search meetings. Now I'm told the self employed earnings don't count for the £892 AET, but noone has been able to give me a reason why.
Is there anyone here that can explain to me please?

OP posts:
Tinselinthewhoopsiebasket · 06/01/2025 13:54

I am self employed.. My only job. Being pt on UC isn't a thing. They are cunts. Ime.

BlwyddynNewydd · 06/01/2025 13:56

100% of pension contributions are disregarded for universal credit. Are you paying into a work pension and a private pension?

BlwyddynNewydd · 06/01/2025 13:58

The legislation states that the earned income used for the earnings threshold is calculated before pensions contributions, tax and national insurance are deducted.

Claimants subject to no work-related requirements - the earnings thresholds

90.—(1) A claimant falls within section 19 of the Act (claimants subject to no work-related requirements) if the claimant's [F9monthly] earnings are equal to or exceed the claimant's individual threshold.

(6) [F19A person’s monthly earnings are]—

(a)[F20the person’s] earned income calculated or estimated in relation to the current assessment period before any deduction for income tax, national insurance contributions or relievable pension contributions; or

H3205
Claimants cannot deprive themselves of income that they have already received. If a payment of earned income is received it is actual income and should be taken into account in the normal way.

Bromptotoo · 06/01/2025 14:04

Is earning below the threshold actually causing a problem eg being leaned on by your job coach?

Sinkintotheswamp · 06/01/2025 14:09

The pension contributions shouldn't count. That sounds like a cock up somewhere.

LakieLady · 07/01/2025 20:57

I'm mystified by this. I work in welfare rights and used to deliver training on how self-employed earnings are treated in UC! It's news to me that the AET doesn't take account of S/E earnings. It was certainly the case that, if you were both employed and S/E, your combined earnings counted for UC.

Have you been reporting your self-employed earnings through your journal?

I'll try and remember to look it up tomorrow and post what I find out. I need to know if it's changed, in case I'm asked to run that course again!

LakieLady · 07/01/2025 21:01

Bromptotoo · 06/01/2025 14:04

Is earning below the threshold actually causing a problem eg being leaned on by your job coach?

They were absolutely shitty with my DIL about it. She was working term-time only in a school but her pay was spread across 12 months, which put her about £20 a month below the threshold. They were always on her sodding case about it, so she did a bit of cleaning for a friend as well.

viralviv · 11/01/2025 10:32

This reply has been withdrawn

This message has been withdrawn at the poster's request

viralviv · 11/01/2025 10:33

Oops, apologies, I thought I'd started my own thread re my post above. Will ask for it to be removed

YouveGotAFastCar · 11/01/2025 10:35

No, self-employed work doesn't count towards your AET. Self-employed people don't have an AET, they have a minimum income floor, and you can't mix the two in the way that you're trying to.

You will be heavily leaned on by your coach if you earn under the AET, even if it's only a few quid, unless you're really lucky and get a very lax coach.

YouveGotAFastCar · 11/01/2025 10:38

LakieLady · 07/01/2025 20:57

I'm mystified by this. I work in welfare rights and used to deliver training on how self-employed earnings are treated in UC! It's news to me that the AET doesn't take account of S/E earnings. It was certainly the case that, if you were both employed and S/E, your combined earnings counted for UC.

Have you been reporting your self-employed earnings through your journal?

I'll try and remember to look it up tomorrow and post what I find out. I need to know if it's changed, in case I'm asked to run that course again!

Your income is taken into account for UC, but it doesn't count towards the AET. I don't think it ever has, but certainly it's been the case for a while.

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