Work and lcwra

jamrumples

Hello, after long discussions and worrying with the COLC my partner has decided he doesn’t have much choice than to go back to work but before doing so, we wanted to ask for help in the calculations. I’ve been on entitled to. But I’m not sure how it works when claiming housing benefit. 

So his earnings before tax will be 2100
we currently get help with rent. 440

I am on Lcwra. 

Any help would be appreciated. 

Thanks.

jamrumples

To add we also have two children, and get the element for that. 

calcotti

Earnings £2100 (I assume this is net of tax and NI and any pension contributions).
Work allowance is £335. This amount of earnings is ignored. (have assumed you are not working and that therefore the Work Allowance has not already been used up.)
For the earnings taken into account there is a deduction from the UC of 55%.

£2100 - £335 = £1765 x 55% =£970.75. This amount will be deducted from your UC payments.

You don't get Housing Benefit unless you are in supported or temporary accommodation, you presumably get the housing element of UC. That is just part of UC, it isn't treated differently.

jamrumples

How much will this leave us with please? A month. 

2100 is before tax and NI yes, 
I don’t work and I am classed as Lcwra. 

We get the housing element. 

And have two children. 

Thankyou

jamrumples

At present we are entitled to 1700 a month, a couple, one lcwra, 2 children and housing. So I deduct 970 off that but add in his wage? 

bg844

£1700 - £970 (his wages) = £730 UC payment.

poppy123456

Don’t forget you will have his earnings on top of the UC payment.

jamrumples

So a total of 2430 a month? Altogether? I’m sorry maths and this sort of thing is really not my strong suit.

jamrumples

jamrumples

So this isn’t correct? 😕

calcotti

If the net earnings were £2100 the earnings deduction would be £970.75 as per my previous reply.

jamrumples said:

So a total of 2430 a month? Altogether? I’m sorry maths and this sort of thing is really not my strong suit.

No. Your existing UC is £1700. You future UC would therefore be £729.75.
Total income is earnings £2100 plus UC £970.75 = £3070.75/month.

However

jamrumples said:

2100 is before tax and NI yes

If the £2100 is before tax and NI the earnings deduction I calculated previously is wrong and will be less because the earnings deduction is calculated on net earnings. Without knowing what the net earnings are it isn't possible to do an accurate calculation.

Entitled have made an allowance for NI and tax. If there calculation is correct and the net earnings are £1750.05 the calculation is.
£1750.05 - £335 = £1765 x 55% =£778.27. This is the earnings deduction.
If your existing UC is £1700 this would therefore reduce to £921.73.
Total income is net earnings of £1750.05 plus UC £921.73 = £2,671.78.

I don't know why entitled have come up with a different answer. It suggests there calculation of your existing award is greater than the £1700 you have said it is. Do you currently have any deductions from the amount you receive?

jamrumples

calcotti bless your heart for baring with me. 

So net earning after deductions will be £1750 

so how would that work out total income for the month please. 

poppy123456

jamrumples said:

So net earning after deductions will be £1750 

so how would that work out total income for the month please. 

As already calculated here.

calcotti said:

£1750.05 - £335 = £1765 x 55% =£778.27. This is the earnings deduction.
If your existing UC is £1700 this would therefore reduce to £921.73.
Total income is net earnings of £1750.05 plus UC £921.73 = £2,671.78.

calcotti

jamrumples said:

calcotti bless your heart for baring with me. 

So net earning after deductions will be £1750 

so how would that work out total income for the month please. 

I've already answered that in my last reply - however there is a mismatch between the entitledto calculation of your UC and what you said you currently receive.

jamrumples

There are deductions from our IC due to child maintenance and a loan. Thankyou so much for your help, when I first looked I didn’t see you full comment for whatever reason. I didn’t mean for you to have to repeat yourself, however I am totally grateful for you help. So thankyou.

calcotti

jamrumples said:

Thankyou so much for your help, when I first looked I didn’t see you full comment for whatever reason. 

Looking at the timings I was probably still adding to my reply when you first saw it and asked the question!