Hi, my name is Lottie1! Will my last pay be counted as capital?

Lottie1

Im on UC and lcwra and I'm being finished from work on I'll health but because I I'm going to get 9 weeks pay when they finish me which will be about £1774.00can this be classed as capital or will I loose all of it if it payed for 9 weeks or will it change if it's in a lump sum hope some one can help please

poppy123456

It will be treated as earnings in the assessment period in which you receive it. As you have the work allowance then some of those earnings will be ignored before deductions apply.

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

If you have the lower work allowance amount then with that amount of earnings your UC will reduce by £753.50 in the month you receive those earnings.

If you have the higher work allowance your UC will reduce by £605.55.

If you receive less than that amount then there will be less deductions. If you receive more than that you'll receive more deductions.

Lottie1

So what happens to the liability capacity for work allowance is this reduced as well as my ill health is finishing my job and I'm not sure to have final payments over 9 weeks or lump sum ? Thankbyou for previous answer

poppy123456

LCWRA element is part of UC, it's not a benefit or a payment on its own. Therefore any earnings above the work allowance will reduce your whole UC for that month, as I explained above.

Whether it's worth taking it as a lump sum or over 9 weeks depends on a number of things such as dates of your UC assessment periods and how many payments of earnings you would receive in that month. You could use a benefits calculator to see if you're better off doing it that way. It could be worth it due to the work allowance.

Lottie1

Thank you so much for your help