DWP Benefits

My friend is on UC and works full time. She said if she drops to 25 hours a week she'll be better off with UC and will get free eye tests ect, how is that even possible?

Surely anyone is better off working full time? Where's the incentive otherwise?

She is very likely to be better off.

Drea1984 said:

She is very likely to be better off.

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I don't understand why? Surely the government want people in full time work ect and don't want to be giving them money and free stuff like eye tests? Surely this money is better spent on the NHS, schools ect?

I completely get some people can't work and need the help from the government but when you're working full time and dropping hours to make more money, something seems wrong with the system.

I agree with you entirely. I work full time but once everything is paid I have very little left. I am very marginally better off working full time. How ever I like working and being out in society.
For many years I worked 25 hours as a single mum and was much much much better off.

The benefits system in this country is crazy both me and husband work we barely get by his friends ex receives nearly 3 grand in benefits a month whist living rent and council tax free I think we are the stupid ones for going out to work

Rosie glow said:

The benefits system in this country is crazy both me and husband work we barely get by his friends ex receives nearly 3 grand in benefits a month whist living rent and council tax free I think we are the stupid ones for going out to work

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It's honestly such a broken system.

The benefits system is insane even under the "evil tories". People are paid to have children and then work two days a week part time and they end up about the same as a doctor with all the topups. It pushes up the price of rent with housing benefit. These things should only be a short time thing not a thing someone lives their life on even though they're able to work. They then end up raising the next generation of unproductive people that take from society rather than contributing. I see it daily with my work. Since covid 100's of thousands of more people have been signed off work and signed onto benefits forever. No the test isn't that strict and it get's lots of people playing the system.

Blueballs said:

The benefits system is insane even under the "evil tories". People are paid to have children and then work two days a week part time and they end up about the same as a doctor with all the topups. It pushes up the price of rent with housing benefit. These things should only be a short time thing not a thing someone lives their life on even though they're able to work. They then end up raising the next generation of unproductive people that take from society rather than contributing. I see it daily with my work. Since covid 100's of thousands of more people have been signed off work and signed onto benefits forever. No the test isn't that strict and it get's lots of people playing the system.

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It's so odd! Is there anything my friend would have to do? Meetings ect to get the higher benefits for dropping hours or is it all just automatic and she'll get it forever?

Seems unfair when there is genuine sick people out there who have to jump through hoops to get any sort of government help.

It depends on your friends circumstances, are they disabled? Have kids under 3? Kids under 5? There will be a minimum amount they are required to earn without being hounded to work more. It doesnt go on hours but £££ earned.

Caffeine Fiend said:

It depends on your friends circumstances, are they disabled? Have kids under 3? Kids under 5? There will be a minimum amount they are required to earn without being hounded to work more. It doesnt go on hours but £££ earned.

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They aren't disabled and they have 3 kids but two are in their 20s and the youngest is 14, nearly 15.

I don't think they are on minimum wage, I think just above so I'm not sure what she earns ect.

GiggleBee said:

They aren't disabled and they have 3 kids but two are in their 20s and the youngest is 14, nearly 15.

I don't think they are on minimum wage, I think just above so I'm not sure what she earns ect.

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So if one of the people in the couple earns an ok wage then yes the other theoretically could work less however once that 15 year old is no longer in full time education unless their housing costs are high its highly likely they wont be entitled to any UC.

Its v difficult for 2 adults with no kids in full time education to 'work' the system these days tbh.

Caffeine Fiend said:

So if one of the people in the couple earns an ok wage then yes the other theoretically could work less however once that 15 year old is no longer in full time education unless their housing costs are high its highly likely they wont be entitled to any UC.

Its v difficult for 2 adults with no kids in full time education to 'work' the system these days tbh.

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Sorry, I should have said she's a single mum, not sure that makes a difference.

GiggleBee said:

Sorry, I should have said she's a single mum, not sure that makes a difference.

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Well it depends on how much she earns but its plausible to work 25 hours rather than full time if she is meeting the minimum income requirements however once the oldest child leaves school then the UC will be minimal. It will really reduce and could end depending on housing costs.

Her UC will be made up of single person allowance £368.74 per month + £315.00 child element. Then if your friend is renting property then the appropriate housing cost will be added on to that amount, may not be full rent, itl be based on the LHA amount.

If your friend is renting then they will be able to earn £379.00 before UC start taking earnings into account. If your friend doesnt have any housing costs they can earn £631.00 before earnings start being deduced from the UC award at the rate of 55p per £1 earned.

There is an expectation that as a single person with kids of secondary school age that you will be earning 37 hours x minimum wage. If youre earning less than that they will be nudging you to look for more work, maybe not drastically so if you have a job but the expectation would be that youd be looking for more hours.

The exception to this is if you are disabled, caring responsibiliies etc.

To sum it up though yes working 25 hours is probably doable for now for your friend but once the kids grow up I cant imagine theyl be able to afford to live like that.

Thank you, that makes alot of sense. Her house is a council house and she says she hardly pays anything for it, so I'm assuming she gets alot for that?

Is it 16 or 18 for them leaving school? If it's 16 she hasn't got long, I might have to make sure she's really thought about this.

GiggleBee said:

Thank you, that makes alot of sense. Her house is a council house and she says she hardly pays anything for it, so I'm assuming she gets alot for that?

Is it 16 or 18 for them leaving school? If it's 16 she hasn't got long, I might have to make sure she's really thought about this.

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No she wont get a lot for that. She'l have to upload her tenancy agreement and if her rent is say £500pcm then that will be added on to her UC award under 'housing costs' which basically replaced housing benefits. However the LHA / housing amounts is basically the lowest third of similar properties in that areas market rent. It hasnt been adjusted since pre covid whilst rents have absolutely sky rocketed. This is why so many people in private rentals are so skint at the moment. Is because they may only get £550 for housing costs on UC but their rent is £950 a month.

Likely to be 18 but it depends on what the child in question chooses to do.

Caffeine Fiend said:

No she wont get a lot for that. She'l have to upload her tenancy agreement and if her rent is say £500pcm then that will be added on to her UC award under 'housing costs' which basically replaced housing benefits. However the LHA / housing amounts is basically the lowest third of similar properties in that areas market rent. It hasnt been adjusted since pre covid whilst rents have absolutely sky rocketed. This is why so many people in private rentals are so skint at the moment. Is because they may only get £550 for housing costs on UC but their rent is £950 a month.

Likely to be 18 but it depends on what the child in question chooses to do.

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Oh I don't know how she reckons her housing is so cheap then. It is council as I said, but it's 3 bedroom, big garden in quite a good area.

GiggleBee said:

Oh I don't know how she reckons her housing is so cheap then. It is council as I said, but it's 3 bedroom, big garden in quite a good area.

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Depends where you live I guess. What is cheap and what isnt is subjective. I live in a cheaper part of the country and a 3 bed council property here would be around £450-£500 which is cheap but youl only get given the £ for what you pay. You cant be paying £450 to the council but claiming back £600 in housing costs on UC.

Caffeine Fiend said:

Depends where you live I guess. What is cheap and what isnt is subjective. I live in a cheaper part of the country and a 3 bed council property here would be around £450-£500 which is cheap but youl only get given the £ for what you pay. You cant be paying £450 to the council but claiming back £600 in housing costs on UC.

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From what I know we're an expensive part of the country. The whole thing is such a mind field though .
Surely they would know if you were paying money but then claiming it back on UC?

GiggleBee said:

From what I know we're an expensive part of the country. The whole thing is such a mind field though .
Surely they would know if you were paying money but then claiming it back on UC?

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Im not sure what you mean, your housing costs are included in your UC award and you take that money to pay your rent. So single person award £368.74 plus child element of £315.00 per month and then say housing costs of £500 would make your friends full UC award of £1183.74 per month.

If she then works 25 hours at minimum wage thats about £1100 per month, the first £379.00 of that isnt deducted from the UC so £721 is taken into account on the taper so 55p from every £1 earned is deducted from the UC so on an award of £1183.74 (if the housing costs were £500) your friend would receive £787.19 UC and £1100 earnings roughly so £1887.19 minus any tax or NI payable on the earnings.

If you calculate someone working FT on minimum wage with the same circumstances then they'd be due £473.32 UC and have £1670 gross wages.

However I have factored in tax and NI to earnings and this is deducted for UC purposes when taking earning into account also pension contributions. But hopefully this gives you an idea of how its all worked out.

Once the child element is removed from her UC award itl be the single person element which is £368.74 plus housing costs will make up the full UC award. She would also be expected to be working full time or as close to it.

Thank you, that makes it all so easy to understand. I thought the housing costs were coming from somewhere else. I've honestly no idea about any of the benefits system really, but you've made it make sense.