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How much can I earn before UC stops altogether

jolene3110
jolene3110 Member Posts: 14 Listener
edited October 8 in Universal Credit (UC)
Hello Everyone 
I am on ESA support group and UC LWRCA and recently have tried working for a few hours (when I felt well enough). I have informed both parties and know can work up to 16hr/£143 on ESA and £515pm on UC. I have a couple of question please:

1). If my pay is £143 pw this would equate to apx £572 per UC assessment period so would this be acceptable and would I be stopped 63p in £ for the £57 over allowance?

2) If I'm able to work more than 16hrs pw/£143 and transfer from ESA just to UC, what is the actual limit I can earn before UC is stopped altogether and i am seen as earning 'too much'?.
I understand that anything over my £515 work allowance is subject to the reduction.
My hourly rate would be higher than NMW and it would be just part time when I'm fit enough.

Thanks in advance
Jo


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Comments

  • Ross_Scope
    Ross_Scope Posts: 4,936

    Scope community team

    Hi @jolene3110


    Thanks for posting, I hope you are doing okay. 


    I am not certain about the answer to your question, I just wanted to say that it sounds like good news about the bit of work you will be doing, and I hope you are enjoying it!

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  • calcotti
    calcotti Member Posts: 2,997 Disability Gamechanger
    edited October 7
    There are no limits on work (hours or earnings) that you do on UC. if the work you do contradicts the reason you have LCWRA then that might prompt a reassessment.

    Please note that ESA permitted work limits are less than 16 hours. Many people make the mistake of thinking they can work 16 hours and retain ESA - they can't.

    jolene3110 said: . If my pay is £143 pw this would equate to apx £572 per UC assessment period 
    No it doesn't. that is the amount for 4 weeks. There are more than 4 weeks in a month. £143/week is about £619/month.

    iI you want to retain ESA it is sensible to target a wage a bit below this to provide a buffer against any slight variations.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • poppy123456
    poppy123456 Member Posts: 23,753 Disability Gamechanger
    Hi,

    For the ESA permitted work you need to make sure it's less than 16 hours and not up to 16 hours, there's a big difference. https://www.gov.uk/government/publications/employment-and-support-allowance-permitted-work-form/permitted-work-factsheet If you work 16 hours per week then your ESA entitlement will end.

    For the UC and maximum earnings before your UC will end will depend on what your maximum UC entitlement is. You can use a benefits calculator and put in different figures to give you some idea. https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=cc99b7b9-c369-45eb-9244-bca3bf7d551f
    Do be aware also that if the work you do contradicts the reasons why you claim LCWRA then you could be reassessed earlier and the decision could go against you once it's made.

  • Adrian_Scope
    Adrian_Scope Posts: 8,078

    Scope community team

    Hi @jolene3110
    It would depend on what your total UC award before deductions is. For example if you receive £668.47 a month from UC (I've assumed you're over 25 and receiving LCWRA, obviously your total may be different if there are children on your claim or other elements) and your work allowance was £515, then you could earn just over £1570 a month before your UC is reduced completely to zero. 

    If, for example, you earned £1000 in an assessment period, your total UC award would be reduced by £305.55 a month for earnings.

    If you're part of a joint claim your partner's earnings would also impact the total UC.

    It is possible to close your ESA claim and only claim UC but it's worth trialling the job first as to reclaim New Style ESA you'd have to meet the NI contributions conditions again. 
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  • jolene3110
    jolene3110 Member Posts: 14 Listener
    edited October 7
    Many thanks for your replies and kind words.
     I understand ESA is up to 16 hrs - Thank you @calcotti for the correct equation per month re UC
    @Adrian_Scope - Thanks for your info. It answers my questions.

    @Ross_Scope Not a good week so far but Im hoping next will be better and I can work a few hours at least

    Best wishes
    Jo
  • Tori_Scope
    Tori_Scope Posts: 5,996

    Scope community team

    I'm glad you've been able to get an answer to your question @jolene3110, but am sorry to hear that this has been a bad week so far. Do you have anything relaxing planned for this weekend?
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