Any help with UC deductions when working?

[PinkBarbieJet]

So for every £1 I earn from working, my Universal Credit payment goes down by 55p. I’ll earn roughly £650 a month from working, my work allowance is £404 a month and my monthly UC payment is £4129.

Does this mean that the calculation is £650 - £404 = £246. £246 x 0.55 = £135.30. So £135.30 is deducted from £4129 which means my UC will be £3993.50 a month?

OR

Does this mean that the calculation is £650 - £404 x 0.55 = £427.80. So £427.80 is deducted from £4129 which means my UC will be £3701.20 a month? TIA as I’m not sure what the correct one will be

The work allowance (WA) is earnings you keep without affecting your UC.

WA is deducted from net earnings. The rest is multiplied by .55 to give the taper deduction by which UC is reduced.

The first one. Although, you’re slightly out as your work allowance is £411 not £404

My benefit tool says £404 in 2025/6

£411 according to gov.uk which was where I looked as I thought £404 didn’t sound right.

You get £50k a year from UC?

4k per month on UC? How do I get in on this?!

Exactly what I thought too!? 😮

Wow that's a lot of money! Not sure about the deductions

I am guessing they live in London or similar….high rent prices?

I am in UC and get £800 a month (I am a carer for a disabled adult/child, not working), so this covers my rent, leaving me with not much to live off.

The reason why people get large amounts are usually due to their rent being very high and living in an expensive area. Each area has a maximum UC will cover for each size of property. I am guessing OP lives in a large house due to having more than 2 dc and lives in an expensive area. It does sound like an awful lot of money.

It’s certainly possible that OP gets this amount, but I wouldn’t be surprised if this is a thread to wind people up.

They could have easily left the amounts they get out of the post altogether.

The landlords are raking it in.

That’s true. There seems to be a lot of similar threads lately, mainly bashing those on benefits.

There are benefit caps though, not many people will be getting what OP is claiming to be getting.

2K rent
Two severely disabled children
Be a carer for them
As well as being a single parent and getting the standard child elements

Not sure how I would have posted without the figures when I needed help between two equations?

Good grief

Have a low paid job, childcare and a landlord.

£4k a month. What could possibly justify that?

Thinking the same! Looked into it and apparently if you have have several DC this amount is real, which includes rent. Xx

Rent £2000 a month
Two severely disabled children about £1000 a month.
The housing element will most likely cover the rent . It is calculated based on LA housing rents for that area. So if for instance a 4 bed house in London costs £2000 a month the claimant would receive the full amount. If it were say a 4 bed privately rented house £ 2500 a month claimant would receive £2000 and would be expected to find tge additional £500.
The children would need separate bedrooms even if they are tge same sex and an additional bedroom is permitted for times when carers are in attendance overnight.

If the children did not have severe disabilities a single parent with two children wouldn't get anywhere near this amount. Some large families who are not in work but receive UC get barely enough to live on.
Im a former case manager for UC.

Either or both of (a) paying rent in a high cost area or (b) having caring responsibility for one or more severely disabled children.

@Mycatislickinghisbum

The amount UC will pay towards private rent is limited by Local Housing Allowance.

It's based on market rents but only those in the lowest end of the market in a widely drawn 'Broad Rental Market Area'. Governments of both stripes have monkeyed around by not uprating it every year meaning it further lags behind what people have to pay for a roof over their head.

Round here the rate for a room in a shared house is around £95/week. You'll find next to nothing available at that rate - £150+ is nearer the mark.

Children are normally required to share up to age ten. Those of the same sex are normally required to share until they're 16. There are some additional room conditions linked to health/disability but receipt of DLA/PIP for care is a pre-condition.

Thank you for your knowledgeable comment

It’s a lot, but the rent is high. You do get a decent amount in DLA for disabled DC, which is a good thing. I’m pretty sure anyone feeling jealous of this 4k a month wants to instead be grateful they are not a single parent living in a high rent area where you’ll never own your own home and I expect that life is difficult caring for 2 disabled DC.

Yes it’s more than I bring home from my 68k a year job, but my job earning this is never going to be as difficult as life is for OP. Plus whilst people are getting low salary and high UC they are not paying high amounts into pensions like those earning a similar salary and will never own the house they rent.