UC, Working and Earnings

james19o6
james19o6 Online Community Member Posts: 165 Contributor
in Universal Credit (UC)
Good Evening everyone,
At the momen I am receiving Universal Credit and caring for my Mum and receive career element too. My Universal Credit Payment including Career Element is £1460. However, I am due to start a new job and earn £24k per year full time. So my question is, will my UC Payment stop?

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    UC is based on net earnings received during your monthly assessment period. 
    Do you have the work allowance? 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    edited January 2023
    Even if you have no Work Allowance you would need to earn more than £2654/month (net) before your UC is reduced to nil. £2,000/month (which I guess is probably your gross anyway) will not reduce your UC to nil.

    The earnings deduction is 55% of your earnings (in excess of any applicable Work Allowance).

    When you start work you should report a change through your journal.
  • james19o6
    james19o6 Online Community Member Posts: 165 Contributor
    Yes its gross before Tax 2k a month. But will my career element stop? I am not sure if I get the work allowance
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited January 2023
    james19o6 said:
    Yes its gross before Tax 2k a month. But will my career element stop? I am not sure if I get the work allowance

    UC is one payment made up of many elements. The carers element makes up part of your maximum entitlement. Earnings received will reduce the whole of your UC.

    You will only be entitled to the work allowance if you either have children on your claim or you have been found to have limited capability for work. See link. https://www.entitledto.co.uk/help/work-allowance-universal-credit

    If there's no work allowance your UC entitlement with your earnings will be as calcotti advised above.

    The more earnings you receive the less UC you're entitled to, the less you earn the more UC you will receive.

    If you're entitled to the work allowance then it means you can receive that amount of earnings before the 55% deductions apply.

    If you're claiming carers allowance as well then you'll need to report the changes for this because you will no longer be entitled to it.

  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    james19o6 said:
    But will my career element stop? I am not sure if I get the work allowance
    The carer element will still be used to calculate your UC entitlement. You still qualify for this provided you are providing 35 hours of care. If you aren't providing 35 hours of care you need to report a change and the carer element will stop.

Categories