Can I still claim UC whilst earning £1300 a month before tax?

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anonymous556

Hi,

I currently receive UC, LCWRA, HB, and PIP, and work 7 hours per week, earning £342.40 per month. I’ve been offered a 30-hour contract at my current job as a manager, which would increase my monthly income to £1,372.80 before tax.

I’m trying to determine what benefits I would still be eligible for and if accepting the new job would make me better or worse off financially. I’ve done multiple calculations, but the results vary. I’m looking for advice or experiences from anyone in a similar situation.

Thank you!

poppy123456

You would only be claiming housing benefit if you're either living in supported or temporary housing. Otherwise help with the rent would be paid with your UC known as housing element.

As you claim for help with the rent then your work allowance will be £404/month. For every £1 of earnings over that amount your UC would reduce by 55p. Taking the work allowance into consideration for your earnings this would mean that deductions would be based on earnings of £968/month. £968 x 0.55 would be a deduction of £532.40/month for UC.

Do be aware though that UC entitlement is based on earnings received each month. This means that if your earnings increase, your UC decreases, if earnings decrease UC increases. It will also depend on how often you receive your earnings. If they are paid every 4 weekly then there will be one month a year where you will receive 2 lots of earnings, so in that month your UC may reduce to zero.

PIP isn't affected. If you're also claiming council tax reduction you'll need to report the changes to your local Authority and your CTR will be recalculated based on your new earnings.