LCWRA, Housing element and part time work...

Bop
Bop Community Member Posts: 3 Listener
in Universal Credit (UC)

Hi there, I'm currently on UC Standard Allowance at 424.90, LCWRA at 429.80 and Housing at 579.41. If I'm to start 16 hours a week part time work at 819.84 per month before tax then how will that effect my amount of benefit payment? Will I be better off or is this likely to cause a bigger headache.

Thankyou.

Comments

  • justsaying2025
    justsaying2025 Community Member Posts: 61 Contributor

    I think with legacy benefits there was a limit of 16 hours. With UC it's more nuanced. It's not the hours - it's the COC and what may come of that. For context I work also and receive LCWRA. From memory my contract initially was 25 hours - turned out that made me ill & I had to reduce my hours. The work allowance is 710 w/o housing, off the top of my head maybe 450 work allowance with help with housing. So, long story short you will be better off. Lets say your nett (after tax & NI+pension) is £700 then less the work allowance that's approx £250 for UC purposes - they will take 55p in every pound (55%) so a deduction of say £137.50 but you have the salary (and all the good things) of £562.50 (700 less the deduction). That doesn't even cover how much you may get out of earning - connections, pride, satisfaction. Good luck & best wishes.

  • Kimi87
    Kimi87 Community Member Posts: 8,767 Championing
    edited June 6

    Try a benefits calculator, fill it in as though you were already working to estimate your UC award.

    https://www.gov.uk/benefits-calculators

  • Bop
    Bop Community Member Posts: 3 Listener

    I used a turn2us benefits calculator and apparently after having my deductions taken away I shall be about £300 better off per month, however I shall have to pay £80 council tax per month as I'm in work so I'll be £220 better off per month? I suppose I didn't take off the council tax and N.I. that would scew things a bit would it not? Apologies, I'm slow but I'd really like to work part time, it's not even so much about the extra money, it's just the security of having the rent and utilities covered and being able to work part time, it's quite a crazy situation.

  • Bop
    Bop Community Member Posts: 3 Listener

    So if I'm paying 80 a month council tax do I contact the council about setting up a payment plan?

  • Kimi87
    Kimi87 Community Member Posts: 8,767 Championing

    You would need to update Council Tax Reduction with your new circumstances.

    They would then adjust your award, and a new bill is issued from the Council Tax department with payment instructions.

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