Lcwra back payments

lynsey122
lynsey122 Online Community Member Posts: 22 Connected
Hi 
hoping for a little help.
a few years back I claimed LCWRA and was awarded, however I am sure it was calculated correctly along with the benefit cap. 
I updated UC 15/11/2018 of long term sick from my current employment. 
UC on 06/03/2019 of cancer diagnosis would be undergoing surgery and radiotherapy. I then provided a fitnote on the 13/03/2019. 
On the 14/03/2019 I was advised to apply for ESA and Pip.
i then called back on 11/04/2019 after receiving advice and asked for capability assessment. I recieved the forms and completed them and returned them on 11/04/2019.
My income reduced to ssp on 28.05.2019
I provided further fitnotes on 12/06/2019.
on 22/08/2019 I received Amy award letter and was awarded  June 7  2019 to 6 July 2019 and 7 July 2019 to 6 August 2019, £672.40.
On the 27/08/2019 I was told - 
award from march however told The award of LCWRA has been awarded form March. Because this is the first instance of you being awarded LCWRA on Universal Credit you do not get a payment for the first three months of your award.That's why your first payment was for 7 June 2019 to 6 July 2019.
I am also querying if deductions between the march and end august before my award should have been back dated. 
I was deducted 

April  take home pay £53.53 from my take home pay of £493.97
and £79.46 tax credit recovery total of £132.99

April  take home pay £75.81 from my take home pay of £529.34 and £79.46 tax credit recovery total of £155.27 .

my assessment period is the 7th of each month and am paid on the 13th of each month.

is this correct. 

Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    I'm rather confused by your questions because of this..

    lynsey122 said:


    April  take home pay £53.53 from my take home pay of £493.97
    and £79.46 tax credit recovery total of £132.99

    April  take home pay £75.81 from my take home pay of £529.34 and £79.46 tax credit recovery total of £155.27 .


    What do you mean by the take home pay twice here? You have put April twice, is that correct or a typo?

    If you're claiming New style ESA as well as UC then the ESA is deducted in full from any UC entitlement. 

    It would be helpful if you could copy exactly what it says in the statements for the months you're enquiring about. For example, please put all the elements you're entitled to, any earnings you received and the deductions, as well as the total amount of UC you received for those months. 
  • lynsey122
    lynsey122 Online Community Member Posts: 22 Connected
    Apologies, there’s 2 questions in my discussion. The last regarding deductions it should have said April and May. When I say deductions. I mean I had income from my employer for April and May, they used the price cap of £1 therefore for every 63p earned my UC was reduced due to this. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    The deductions for earnings above the work allowance is 55p for every £1 you earn, not 63p. This changed quite sometime ago. 

    If you claim for help with the rent then your work allowance will be £379/month. If your earnings in April were £493.97 then the deductions would be £63.23. 

    If your earnings in May were £529.34 then the deductions would be £82.68. 

    To work out the deductions you minus the work allowance of £379 from your earnings. Then you times that figure by 0.55.

    If you don't claim for help with the rent then your work allowance will be £631 so earnings of up to that amount will be ignored. There's a 55p deduction for every £1 over that amount.

  • lynsey122
    lynsey122 Online Community Member Posts: 22 Connected
    Ok I wasn’t claiming rent at all. 
    suppose am asking should the benefit cap have been. Backdated also. 
    ******
    This is May 2019 before Lcwra- 

    Your payment this month is£671This will be paid by 8pm on 13 May 2019

    What you're entitled to

    Standard allowance

    £317.82

    You get a standard amount each month. You said you're single

    Children

    £508.75

    You get support for 2 children

    Total entitlement before deductions

    £826.57

    What we take off (deductions)

    Take-home pay

    minus‑ £75.81

    Need help understanding take-home pay?

    Take-home pay is what's left after tax, National Insurance and any pension contributions have been deducted.

    Earnings reported by your employer
    £529.34

    The amount we'll use to work out your Universal Credit is £529.34

    Your total take-home pay for this period is£529.34

    The first £409.00 of your take-home pay doesn't affect your Universal Credit monthly amount. Every £1.00 you earn in take-home pay over this amount reduces your Universal Credit by 63 pence.

    Benefit cap

    minus‑ £0.00

    Need help understanding the benefit cap?

    We take money off your payment as there is a limit on the total amount of benefit you can get. This includes money from other benefits, like Child Benefit.

    This will not apply to you until 6 November 2019. After this date your payments might be reduced.

    Search for 'benefit cap' on the GOV.UK website to find out how it's calculated.

    Debts and loan repayments

    Tax Credits recoveryminus‑ £79.46

    Read more information about Universal Credit payments, including who to contact on the GOV.UK website. Search for 'find out about money taken off your Universal Credit payments'.

    Total deductions

    minus‑ £155.27

    Your total payment for this month is

    £671.30


    *************************^
    Marc 2019

    Your payment this month is£693This will be paid by 8pm on 13 March 2019

    What you're entitled to

    Standard allowance

    £317.82

    You get a standard amount each month. You said you're single

    Children

    £508.75

    You get support for 2 children

    Total entitlement before deductions

    £826.57

    What we take off (deductions)

    Take-home pay

    minus‑ £53.53

    Need help understanding take-home pay?

    Take-home pay is what's left after tax, National Insurance and any pension contributions have been deducted.

    Earnings reported by your employer
    £493.97

    The amount we'll use to work out your Universal Credit is £493.97

    Your total take-home pay for this period is£493.97

    The first £409.00 of your take-home pay doesn't affect your Universal Credit monthly amount. Every £1.00 you earn in take-home pay over this amount reduces your Universal Credit by 63 pence.

    Benefit cap

    minus‑ £0.00

    Need help understanding the benefit cap?

    We take money off your payment as there is a limit on the total amount of benefit you can get. This includes money from other benefits, like Child Benefit.

    This will not apply to you until 6 November 2019. After this date your payments might be reduced.

    Search for 'benefit cap' on the GOV.UK website to find out how it's calculated.

    Debts and loan repayments

    Tax Credits recoveryminus‑ £79.46

    Read more information about Universal Credit payments, including who to contact on the GOV.UK website. Search for 'find out about money taken off your Universal Credit payments'.

    Total deductions

    minus‑ £132.99

    Your total payment for this month is

    £693.58

    *****************

     Here is January 2020 with LCWRA 

    Standard allowance

    £317.82

    You get a standard amount each month. You said you're single

    Children

    £508.75

    You get support for 2 children

    Limited capability for work and work-related activity

    £336.20

    You said your health affects you at work or prevents you from working

    Total entitlement before deductions

    £1,162.77

    What we take off (deductions)

    Take-home pay

    minus‑ £202.92

    Need help understanding take-home pay?

    Take-home pay is what's left after tax, National Insurance and any pension contributions have been deducted.

    Earnings reported by you
    £0.01
    Earnings reported by your employer
    £825.09

    The amount we'll use to work out your Universal Credit is £825.10

    Your total take-home pay for this period is£825.10

    The first £503.00 of your take-home pay doesn't affect your Universal Credit monthly amount. Every £1.00 you earn in take-home pay over this amount reduces your Universal Credit by 63 pence.

    Advance Payments

    minus‑ £67.67

    Need help understanding advance repayments?

    We take £67.67 off your payment to pay back your advances.

    Check what advances you've had and what you owe.

    Debts and loan repayments

    Tax Credits recoveryminus‑ £11.78

    Read more information about Universal Credit payments, including who to contact on the GOV.UK website. Search for 'find out about money taken off your Universal Credit payments'.

    Other money you owe

    Need help understanding other money you owe?

    Council tax or rates arrearsminus‑ £15.89

    Check your journal for information about these deductions.

    Total deductions

    minus‑ £298.26

    Your total payment for this month is

    £864.51

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    edited February 2024
    The work allowance is showing on all those figures. As this was back in 2019 and the work allowance was lower back then and was £409/month in tax years 2018/19. It then increased to £503 in tax years 2019/20. As you weren't claiming for help with the rent then you were correctly entitled to the higher work allowance. 

    I don't see any benefits cap deductions in any of those figures. It does give advice in 2 of your copied statements above that "you maybe affected by the benefit cap from November 2019.' but no deductions were made. 

    In the copied statement from Jan 2020 the message about the benefit cap has been removed because there was no longer any need to add that to your statement. 

    Seems fine to me. 
  • lynsey122
    lynsey122 Online Community Member Posts: 22 Connected
    ok, 
    sorry to keep asking questions. For LCWRA do the benefit cap drop. If it does and I started my claim for LCWRA on the 8th march 2019 when I received my award on the 26/08/2019 should the benefit cap have been recalculated. 

    Also from the date of my claim for LCWRA 8th march 2019 to my award June 7  2019 to 6 July 2019 and 7 July 2019 to 6 August 2019, £672.40.
    On the 27/08/2019 was it calculated on the correct assessment dates x

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    You're excluded from the benefit cap when found to have LCWRA. You're also excluded if your earnings are more than a certain amount.

    There are no deductions for the benefit cap in those calculations above. For this reason they do not owe you any money. 

    You have deductions for earning because they are more than the work allowance and deductions for debt that you owe. 
  • lynsey122
    lynsey122 Online Community Member Posts: 22 Connected
    Ok, I think I have been confused by the benefit  cap and work allowance. I know the work allowance for 23/24 is £623 should this have been lower with Lcwra or recalculated when award ( backdated)
  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    The work allowance for 2023/24 is £379/month if you claim for help with the rent or £631/month if you don't. LCWRA doesn't lower the work allowance. work-allowance-universal-credit

    For 2024/25 from April it will increase to £673/month when no rent is claimed or £404/month if rent is claimed. 

    As you have children on your claim you were entitled to the work allowance even before you were found to have LCWRA and that was reflected in the calculations above, as I previously advised. 

    Based on the above calculations they don't owe you anything.