Universal credit , lcw and lcwra

trick
trick Community Member Posts: 3 Listener
in Start here and say hello

Hi I’m new to this group and was wondering if anyone can give me some advice,

Today I was dismissed by my employer on capability , I have been off sick for a long time, they have said I will get 12 weeks in lieu of notice , plus holidays incurred, which adds up to around £3500, i’m in receipt of universal credit , lcw and lcwra.

Can anyone please tell me how this will effect my benefits, will they stop for on month only , or will they be stopped completely , and also will my rent still be paid , or do I have to pay it , I am so worried

Thankyou

Comments

  • poppy123456
    poppy123456 Community Member Posts: 64,375 Championing
    edited February 2025

    It will be treated as earnings in the assessment period in which you receive it. It may reduce your UC to zero for that month. If this does happen you will need to make sure you pay your rent yourself because earnings reduce the whole of your UC and not just part of it.

    As you have the work allowance which would be £404/month if you receive £3,500 from your employer this would be a deduction of £1,702.80 for your UC. Whether this reduces your UC to zero will depend on how much your UC is before deductions.

  • trick
    trick Community Member Posts: 3 Listener

    thankyou, poppy 123456

    I did think I would have to pay my rent that month, will it all go back to normal the month after, I read that if I got too much it could end my claim . This is what is worrying me .

  • poppy123456
    poppy123456 Community Member Posts: 64,375 Championing

    With that amount of earnings surplus earnings will not apply so it would only affect 1 assessment period. When a UC claim is reduced to zero it remains open for 6 months, so there's nothing to worry about here.

  • trick
    trick Community Member Posts: 3 Listener

    poppy 123456

    Thankyou so much , for your advice ,

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