Universal credit

emj9998

Hi all

My husband had to give up work to care for me at the start of the year. We receive universal credit but have had to wait for my husband to receive his final work payment as he was dismissed on capibility due to caring for me.

My husbands final payment is £4197 and we are really worried this will have to last 6 months. We currently receive £617.60 standard allowance, housing £ 429.35, carer £ 198.91 and lwcra £416.19. My husband receives a military pension so £299 is deducted for this

Can anyone tell me how my husbands final payment will affect our universal credit and for how long? We need to ensure we budget carefully and are not left unable to pay direct debits,rent and bills.

My husband is due to start part time employment next week

Thanks for any advice

Morgan_Scope

Hello @emj9998

You may be concerned about something called Surplus Earnings, but based on the situation you described, it won’t apply to you. Assuming your husband's final payment consists of owed wages and holiday pay (but not redundancy pay), it will be treated as income.

Here’s how the deduction will be calculated:

1. Total Income: £4,197
2. Less Work Allowance: £404
   Net Income: £3,793
3. Apply Wage Taper (55%): £3,793 x 0.55 = £2,086

This means your Universal Credit will be reduced by £2,086.

The figures you provided indicate that your total UC award is £1,661.05 before deductions. With a wage deduction of £2,086 and an additional deduction of £299 for your husband’s pension, you will receive a £0 payment from UC for the month when he is paid his final wage.

After that, your payments should return to normal.

emj9998

Many thanks Morgan

Morgan_Scope

You're welcome @emj9998, I'm glad I could help. Wishing the best of luck to your husband in his new role.