UC when one of us reaches retirement age

MartinR

I have previously raised a similar question, but I'm still unclear about exactly what happens.
Myself and my good lady both reach retirement age this year. Margaret will be 66 in May, I will be 66 in August. I have already checked what we will get. Margaret will get the full pension, I will get 20% less. Margaret has received the letter to apply for pension, that has been done.
Margaret currently works part time earning around £800 a month. We receive UC, I get LWRCA, we have the carer element. I receive Standard PIP.
On UC, we are allowed in the region of £630 before they start deducting 55% based on earnings over that figure. 
I understand that when one person reaches retirement age, it will affect UC. This is the part I am unclear on. Do they still give you the allowance of £630 as though she is still working, or do they take the whole pension amount from UC?

poppy123456

Whilst you're still claiming UC you will still be entitled to the work allowance. However, once your partner starts receiving her state pension this will be deducted in full from any UC entitlement because it's treated as "other income."  If she's going to continue to work, then earnings over the £631/month will reduce your UC by a further 55%. There may still be a small amount of UC payable. 

Once you reach state pension age then UC will stop completely, 

MartinR

poppy123456 said:

Whilst you're still claiming UC you will still be entitled to the work allowance. However, once your partner starts receiving her state pension this will be deducted in full from any UC entitlement because it's treated as "other income."  If she's going to continue to work, then earnings over the £631/month will reduce your UC by a further 55%. There may still be a small amount of UC payable. 

Once you reach state pension age then UC will stop completely, 

So, can I assume my UC statement will look something like this:

Assessment period: 13 December to 12 January 2024

Need help understanding your assessment period?

Payments

[REMOVED  BY MODERATOR - Personal Information]

What you're entitled to

Standard allowance

£578.82

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

Carer

£185.86

You said that [REMOVED  BY MODERATOR - Personal Information] is caring for someone.

Limited capability for work and work-related activity

£390.06

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

Total entitlement before deductions

£1,154.74

What we take off (deductions)

GOV.UK

Your payment this month is (Pension)

£880

This will be paid by 8pm on

19 January 2024

£880

[REMOVED  BY MODERATOR - Personal Information]

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

£0.00

[REMOVED  BY MODERATOR - Personal Information]

Earnings reported by your employer (Pension)

£880

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

£880

The total take-home pay for [REMOVED  BY MODERATOR - Personal Information] this period is

£880

We have taken £0.00 off your Universal Credit payment because you have money, savings and investments of £0.00.

The first £6,000 of your money, savings and investments does not affect your payment. If you have over £6,000 up to £16,000, every £250 reduces your Universal Credit by £4.35. For any remaining amount that is not a complete£250, a further £4.35 is also deducted.

You told us you have £0.00. You must

tell us if this changes

so that we can pay you the correct amount on time.

1/16/24, 1:30 AM Payments - Universal Credit

Total deductions ‑

£880

Your total payment for this month is

£274.74

If your circumstances change

You must immediately

report changes in your circumstances

that could affect your Universal Credit payments.

Help and support

The

'Managing your claim guide'

gives more information about Universal Credit payments.

If you think we've made a mistake or want to appeal

Other support you may be able to get

poppy123456

I'm a little confused by that calculation. It mentions a "pension" and then also earnings her employer has reported. You said she doesn't reach state pension age until May. Did you use a benefits calculator to get that calculation?

Will she still be working once she reaches state pension age?

You've also used both of your full names, which isn't allowed here because it's personal information. I've flagged your comment to a member of the team for your safety, just incase you're unable to edit to remove your names.  

MartinR

Hi Poppy. I can't see how to edit it. I'm just trying to work out if we'll be able to survive if Margaret actually retires on her birthday. The £220 is an approximate figure. It will be whatever the full state pension is when she retires in May. 
Does UC no longer allow the £631 if Margaret stops working and only has the state pension. I know you have stated the full pension is taken from UC.

poppy123456

You only have 1 hour after commenting to edit that comment and you are now past that time. I have flagged it to a member of the team who will hopefully see it and remove your names. 

MartinR said:

Does UC no longer allow the £631 if Margaret stops working and only has the state pension. I know you have stated the full pension is taken from UC.

No, State Pension is not treated as earnings, it will be treated as "other income" which will reduce your UC £1 for £1. The work allowance doesn't apply to state pension. It only applies to earnings. 

As she reaches state pension after the April increase the following figures include the new rates..

Standard couples allowance. £617.60
LCWRA element.. £416.19
Carers element.. £198.31

Total UC before deductions.. = £1,232.10

State pension.. £221.20/week = £958.53 monthly deduction for UC.. because SP is a weekly benefit and UC is monthly. To work out the monthly deduction you times the weekly amount by 52 and then divide by 12. 

Total UC payable after the state pension deduction is £273.57/month. Then she will have her state pension on top of that. 

MartinR

Thank you. That has fully cleared this up for me. I suppose she would be better working until I retire. 

poppy123456

You're welcome. That's her decision, whether she stops or continues. Her earnings would reduce your UC further after the work allowance, as you know. 

Jimm_Scope

Hi @MartinR, I've removed your personal information! please let me know if there is any other information you'd like us to remove