New job, fortnightly pay - UC HELP!!!

Sammyj1230
Sammyj1230 Online Community Member Posts: 1 Listener
edited March 2021 in Universal Credit (UC)
Hi all, 

Im Sam, im new on here. 

Just wondering if someone can advise me. 
Im a single parent receiving UC with the LCWRA element.  

I’ve just finished my first week at a new job working 12.5 per week, the problem is its fortnightly pay, meaning in April i will receive 3 lots of wages when in theory one of them should be for March but because of fortnighly pay it falls on the 2nd April. 
This will happen in other months aswell - not just April. 

Am i going to be worse off in those months because;
- the assessment period will calculate that ive had higher earnings so i will receive less UC?
- i claim LCWRA so in these months the total salary will be above the threshold which contradicts me claiming for the LCWRA. 

Im wondering now if its even worth me doing this job!?  

Would be grateful of any advice. 

S. X


Comments

  • Adrian_Scope
    Adrian_Scope Posts: 11,750 Online Community Programme Lead
    Hello @Sammyj1230. 

    Unfortunately when you're paid fortnightly there will be a few times each year that three lots of wages fall into an assessment period. Over the course of the year, it shouldn't make you any worse off (unless your earnings are usually below your work allowance) but it can be difficult to adjust for those months where it falls. Those paid 4-weekly have a similar problem where once a year 2 lots of wages fall into an AP.

    A couple of things to note:
    There is no strict earnings limit when you have LCWRA. So 3 wages falling into an AP shouldn't impact your LCWRA award.

    I don't know how much you're currently earning but I'll use the 2021 minimum wage amounts as an example.

    In a usual fortnight your earnings would be £222.75, so when two lots of wages fall UC will use £445.50 as your earnings. If you've housing in your claim, this will mean they deduct £96.71 from your UC for you earning £445.50

    If 3 lots of wages fall, you'll have earnt £668.25, so UC will lower your total UC by £237.04.

    So even though your deductions are higher, your overall income is still much higher with you working, even on a 3-pay month. It'll still be below the threshold entitling you to free school meals, free prescriptions and other healthcare such as dentist appointments. 
  • calcotti
    calcotti Online Community Member Posts: 10,001 Championing
    There’s a useful explanation of how different earnings cycles impact UC here
    https://www.gov.uk/government/publications/universal-credit-different-earning-patterns-and-your-payments/universal-credit-different-earning-patterns-and-your-payments-payment-cycles

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