What happens if I get better? I can't see a maximum income before coming off UC? — Scope | Disability forum
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What happens if I get better? I can't see a maximum income before coming off UC?

Martyandme999
Martyandme999 Member Posts: 7 Listener
edited December 2021 in Universal Credit (UC)
So I'm being a bit premature here. I am currently on UC and have LCW &WRA. I'm allowed to do a Masters past time whilst doing this which won't finish till October (and nearly dropped out because I struggled with my health so much last year).

However, I am a little better than this time last year. 

Once I finish, if I am better still, which might just be wishful thinking, is there a maximum amount of hours I can work before the limited capacity for work and work-related activity gets removed?

Also, is there a maximum earning for still being on universal credit? Is it national minimum wage full hours - because that is far lower than my current award? If not is it the same as my award? I can't see the information about this anywhere? 

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Comments

  • poppy123456
    poppy123456 Member Posts: 25,620 Disability Gamechanger
    There's no maximum amount of hours you can work while claiming UC. As you have LCWRA then you will have the work allowance, which means you can earn a certain amount of money each assessment period before the 55% deductions apply. If your UC includes help with your rent then it's £335 if it doesn't then it's £557. See link regarding work allowances. https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances
    How much you can earn before your UC is reduced to zero will depend on what your maximum UC entitlement is, as everyones circumstances are different then it's not possible to answer that question.
    If you do start working you need to report the changes onto your journal. If the work you do contradicts the reasons why you were found to have LCWRA then you could be reassessed early and the decision could go against you once it's made.


  • calcotti
    calcotti Member Posts: 3,778 Disability Gamechanger
    Martyandme999 said:..is there a maximum amount of hours I can work before the limited capacity for work and work-related activity gets removed?
    No there isn't. You will continue to get LCWRA element until reassessed as no longer qualifying. Obviously however you are expected to inform UC if you think you no longer qualify. Remember however that the assessment looks at how you are on the majority of days over an extended period. It is therefore legitimate to return to work and increase your hours and see how you get on before reporting anything to UC.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • Martyandme999
    Martyandme999 Member Posts: 7 Listener
    I don't actually know on what grounds I was found to have LCWRA - the assessor said it looked like I would meet several so he could stop after the first one I met (but I can't remember what that was).  Would I be able to ask? 

    Let us say for an example my award is 20k  (and the benefit cap does not apply due to disability) if I earnt 20k on the dot would it stop or not because I would have a work allowance too? (also let us say that 20k was 16 hours of work a week?). 

  • Martyandme999
    Martyandme999 Member Posts: 7 Listener
    calcotti said:
    Martyandme999 said:..is there a maximum amount of hours I can work before the limited capacity for work and work-related activity gets removed?
    No there isn't. You will continue to get LCWRA element until reassessed as no longer qualifying. Obviously however you are expected to inform UC if you think you no longer qualify. Remember however that the assessment looks at how you are on the majority of days over an extended period. It is therefore legitimate to return to work and increase your hours and see how you get on before reporting anything to UC.
    Thank you - that's really useful especially as my condition fluctuates. E.g when I was younger I looked like I was coping at school full-time for three or four weeks. I then declined over the next month,  The following month I was pretty much housebound and doing 0 hours at school. So would it be reasonable to see I can cope with something for three months to see that it is sustainable? 
  • poppy123456
    poppy123456 Member Posts: 25,620 Disability Gamechanger


    Let us say for an example my award is 20k  (and the benefit cap does not apply due to disability) if I earnt 20k on the dot would it stop or not because I would have a work allowance too? (also let us say that 20k was 16 hours of work a week?). 

    UC is not based on annual earnings, as advised previously it's based on net earnings received during your assessment period. No one can tell you how much you can earn before your UC reduces to zero without knowing exactly what your maximum UC entitlement is.

  • Martyandme999
    Martyandme999 Member Posts: 7 Listener


    Let us say for an example my award is 20k  (and the benefit cap does not apply due to disability) if I earnt 20k on the dot would it stop or not because I would have a work allowance too? (also let us say that 20k was 16 hours of work a week?). 

    UC is not based on annual earnings, as advised previously it's based on net earnings received during your assessment period. No one can tell you how much you can earn before your UC reduces to zero without knowing exactly what your maximum UC entitlement is.

    That's why I gave the figure of 20k  so we could do a worked example so I could understand it. In regards to gross/net earnings - what happens if you get temporarily overtaxed (I've had this happen to friends when they've started new jobs)? 
  • calcotti
    calcotti Member Posts: 3,778 Disability Gamechanger
    edited December 2021
    Martyandme999 said: .. what happens if you get temporarily overtaxed (I've had this happen to friends when they've started new jobs)? 
    As already advised your UC is based on net earnings so if you are 'overtaxed' your net earnings will be lower and therefore your UC will be higher. When you are repaid any tax overpaid this refund is treated as earnings and will reduce the UC for the month in which the refund is received.

    To work out how much you can earn before your UC would reduce to nil you can use this formula
    Nil UC threshold = (Maximum UC amount minus any unearned income) / 55% plus Work Allowance

    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.

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