Bonus in a big chunk loses me UC

[Bownus]

My employer owes me a bonus and a fairly large amount of back pay due to their error. If they pay this in one chunk I will lose a large amount of universal credit which U.K. currently receiving to top up my SMP and will continue to receive when I enter the unpaid period of my maternity leave in March.

I have asked my employer to pay the money owed after I finish SMP as the impact will be less but they have refused. Is there anything I can do? I don’t want to lose UC because of their error.

If you had been paid previously would it not have already affected your claim?

You can reclaim UC quite quickly if they close it due to you not being entitled in that month. I’d save as much of the bonus as you can to last you until you get your next UC a payment.

Does your workplace do pension salary sacrifice? Could you ask them to pay your bonus via SS directly into your pension rather than giving it to you? UC is based on your take home so it shouldn’t impact it then.

Alternatively, it should only impact your UC for the one month you get the bonus, then you can ask for it to be restarted.

This used to happen to me every year when my employer paid my annual bonus when I was in receipt of housing benefit. All my colleagues would tell me gleefully what they would be spending their bonus on this year and I would grimace and have to say I'll be spending it on rent. I don't think there's much you can do. Although recently my employer paid an extra £1000 lump sum cost of living payment to employees under a certain salary threshold and it was offered either as a lump sum, in monthly payments or even as vouchers for people that didn't want to adversely affect their UC. So when there's a will there's a way, your employers might just not want to look into the complexities of breaking it down so that everyone can benefit from it.

Why shouldn’t your UC be reduced because you receive (quite a large) bonus and unpaid wages? I am pro benefits completely by the way, but if you earn more than the threshold then why should you be entitled that month?

I’m on UC myself due to high childcare costs. I would accept I wouldn’t receive UC one month if I received more from my employer. Your UC most likely won’t close for one AP of nil payment, if it does then you can reopen as a rapid reclaim and still keep the same Assessment periods and payment date

I resent losing UC because the payment delays are due to my employer’s error. If they had paid me the bonus on time it would have fallen when I was receiving full pay (which I got as a contractual benefit for first 16 weeks of mat leave) and therefore no UC. If they had applied the pay rise correctly then I would have back pay owing, I would have just got more money during the 16 weeks during which I was on full pay.

Completely get your frustration with your employer for messing up. Let’s hope they report it in one lump sum with one date. If they report it to the HMRC as back pay with previous pay dates then you’ll end up with an overpayment to pay back

Urgh I feel your pain op. Midwife lost my MatB1 form. Got 10 weeks maternity pay when ds was 10 weeks old. Went down as huge income and lost my HB! Didn't matter I had zero for that first 9 weeks!

On another note; I had absolutely no idea you could claim UC to cover reduced salary while on maternity leave - very handy to know!

I get exactly why it's annoying but you will have the money so will that amount cover the missed UC? Or is it not enough? (I understand that it should have been spread out so really you should already have had it to spend it)

I can see where you’re coming from, but you can’t genuinely think it’s ok to take free UC money that you just don’t need at the same time as being given a bonus that will provide what you need. It’s frustrating that your employer messed up, but that’s not a reason for you to be given benefits when you won’t need them.

I got a bonus and was worse off than not having one