Working out earnings on uc and lcwra

Julie63_

HI all , could anyone advise how much I would take home if I earn 1000 per month net, and I receive lcwra, it will be a sitting job , not strenuous, but I can't work out what I would be left with

Thanks in advance

poppy123456

You have the work allowance which means a certain amount of earnings received each month is ignored before the 55% deduction applies.

If you claim for help with the rent the work allowance will be £404/month, if you don't it will be £673/month. For every £1 of earnings over those amounts your UC reduces by 55p.

For those lower WA to work out the deduction you do the following.. £404 - £1,000 = £596 x 0.55 = £327.80 deduction for UC.

For the higher work allowance £673 - £1,000 = £327 x 0.55 = £179.85 deduction for UC.

Please also note that UC entitlement is based on earnings received each month so how much your UC reduces by will depend on how often you receive your earnings. If you're paid every 4 weekly then there will be once a year where you will receive your earnings twice in one assessment period. This means you'll receive less UC for that month.

If you're paid fortnightly then there will be 2 months a year when you'll receive lots earnings in a month and for those months your UC would be less and could even be reduced to zero.

Julie63_

Thank you very much poppy