Tips When Claiming Universal Credit

UNIVERSAL CREDIT - A lot of people claiming Universal Credit get caught out the way the system works. 

 Your first assessment period will start on the date that you make your claim. The assessment period will last one calendar month. You will usually receive your first payment 7 days after the end of your first assessment period. Universal Credit will then be paid on the same date each month.

What happens is people lose their job and then rush to claim Universal Credit. UC adjusts not to how much work you do but to how much you earn. HMRC inform the DWP what this is, if you were on PAYE. Companies on the Real Time information. In April 2012 HM Revenue and Customs (HMRC) began the phased introduction of Real Time Information (RTI). The Income Tax (Pay As You Earn) Regulations 2003 (PAYE Regulations) were amended to reflect reporting in real time. Under RTI, information about tax and other deductions under the PAYE system is transmitted to HMRC by the employer every time an employee is paid. If your employer is not on this system they may take longer to inform HMRC you have been paid.    

The problem is that people stop work and then get their final pay and this falls in the assessment period. So they can find that their payment is far less than they expected. 

It pays to get paid first and then claim UC. 

The other big problem is that people who get paid month-end who get paid early because of a Bank Holiday (as an example). They can have two wage payments in one assessment period, stopping UC or reducing it substantially. A serious matter if you are in part-time low paid work. 

Another issue is that with these benefits increases announced by the government, these can cause claimants to exceed the Benefit Cap. The benefit cap is a limit on the total amount of benefit you can get. It applies to most people aged 16 or over who have not reached State Pension age.

The government has sounded very generous in their support for those on benefits, struggling companies and furloughed employees. Getting this help is another thing altogether. Don't 'count your chickens' as the saying goes. Certainly managing your Universal Credit claim and when you apply can make a big difference. 

There is a five-week wait and naturally people claim as soon as they can. Once on UC your relationship can run smoothly. Intially though, it can seem quite a hurdle to sign onto UC and keep all the bills paid. 

The amount your household gets from some benefits might go down to make sure you do not get more than the cap limit. The benefit cap affects:

• Bereavement Allowance
• Child Benefit
• Child Tax Credit
• Employment and Support Allowance
• Housing Benefit
• Incapacity Benefit
• Income Support
• Jobseeker’s Allowance
• Maternity Allowance
• Severe Disablement Allowance
• Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before 9 April 2001)
• Universal Credit

How much is the Benefit Cap?

The current cap is:

•    £442.31 per week (£1,916.67 per month or £23,000 per year) for couples and lone parents in Greater London
•    £384.62 per week (£ 1,666,67 per month or £20,000 per year) for couples and lone parents outside Greater London
•    £296.35 per week (£1,284.17 per month or £15,410 per year) for single adults in Greater London
•    £257.69 per week (£1,116.67 per month or £13,400 per year) for single adults outside Greater London

ABC Comment, have your say below: