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Example 2: couple, no children, limited capability for work
John is 30 years old. He is not in work, does not have any children, and receives the limited capability for work and work-related activity element. He also receives £110 a month in contributory Employment and Support Allowance. He has £5,000 in savings.
John lives with his partner Sarah, who earns £500 a month from employment and has £3,000 in savings. They claim Universal Credit as a couple, which gets paid to John’s account.
John and Sarah’s maximum Universal Credit payment would include the basic element couple’s allowance of £509.91, plus John’s element for limited capability for work and work-related activity of £343.63, totalling £853.54.
The couples’ combined savings exceed the £6,000 limit by £2,000. This can be split into eight £250 parts, adding £34.80 to the couple's assumed income (£4.35 x 8).
So, their total income is assumed to be £534.80.
John doesn’t work, so he doesn’t qualify for the work allowance. As Sarah is able to work and they don’t have children, she won’t qualify for it either.
As their assumed income is £534.80, their Universal Credit payment will be reduced by £294.14 (£534.80 x 0.55p).
Plus, there’ll be an additional reduction of £1 for each £1 of the other benefits John receives, a further £110 per month.
Overall, the maximum possible payment of £853.53 per month would be reduced by £404.14, bringing their payment to £449.39 per month.
bi786 said: John doesn’t work, so he doesn’t qualify for the work allowance. As Sarah is able to work and they don’t have children, she won’t qualify for it either.
You can earn a certain amount before your Universal Credit is reduced if you or your partner are either:
This is called a ‘work allowance’. Your work allowance is lower if you get help with housing costs.
bi786 said:I found it in below website plz have lookhttps://www.which.co.uk/money/tax/tax-credits-and-benefits/universal-credit/how-universal-credit-is-calculated-acrr84l2ckrv
bi786 said: Thank you so even tho I don’t have the lwrca group on Uc my partner head awarded it cause we are household one claim the work allowance applies in our claim thank you
poppy123456 said: bi786 said: John doesn’t work, so he doesn’t qualify for the work allowance. As Sarah is able to work and they don’t have children, she won’t qualify for it either. Claiming as a couple the work allowance is applied to the actual claim, not to each individual person.
happyfella said:.. what is LCWRA and what does it mean.
calcotti said: happyfella said:.. what is LCWRA and what does it mean. If you are found to have LCWRA (Limited Capability for Work and Work Related Activity) you receive an extra £343/month in your UC (from the fourth month after you reported the health condition provided you have supplied continuously Fit Notes).You also get a Work Allowances applied to the claim which means that a part of your wife’s earnings will be ignored completely. If you have children on the claim you will already have the Work Allowance.
happyfella said:Thank you for that. No one has ever explained it to me.
happyfella said: calcotti said: happyfella said:.. what is LCWRA and what does it mean. If you are found to have LCWRA (Limited Capability for Work and Work Related Activity) you receive an extra £343/month in your UC (from the fourth month after you reported the health condition provided you have supplied continuously Fit Notes).You also get a Work Allowances applied to the claim which means that a part of your wife’s earnings will be ignored completely. If you have children on the claim you will already have the Work Allowance. Thank you for that. No one has ever explained it to me.
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