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U/C and Child Benefit
Advice,explaining would be appreciated…
You have a couple who have one (1) child who claim U/C. They receive the maximum permitted under the cap (whatever that they be).Part of their benefit income is ‘child benefit.’ One or both of the adults start earning and what I understand is that the 65% taper who first eats into their housing benefit and then all the other benefits (including child benefit) until their UC is totally eating up by their paid income. They then just live on their paid salary and no longer receive UC.
If this is right how can other parents/couples who earn eg £50,000 each still receive their child benefit. Are the previous couple above denied their child benefit as a result of previously claiming UC?
How does this work out?
Advice,explaining would be appreciated…
You have a couple who have one (1) child who claim U/C. They receive the maximum permitted under the cap (whatever that they be).Part of their benefit income is ‘child benefit.’ One or both of the adults start earning and what I understand is that the 65% taper who first eats into their housing benefit and then all the other benefits (including child benefit) until their UC is totally eating up by their paid income. They then just live on their paid salary and no longer receive UC.
If this is right how can other parents/couples who earn eg £50,000 each still receive their child benefit. Are the previous couple above denied their child benefit as a result of previously claiming UC?
How does this work out?
I’m not sure I fully understand the question - sorry - could you give an example with figures? By ‘housing benefit’ I guess you mean housing element of UC? The 65% taper will ‘eat’ UC (incl any UC housing element and child element) but it won’t affect their child benefit.
The Gov.uk website states that ‘child benefit’ is included in the cap….
2. Benefits included in the cap
The cap applies to the total amount people in your household (you, your partner and any children living with you) get from the following benefits:
Bereavement Allowance
Carer’s Allowance (this won’t be affected by the benefit cap from 7 November 2016)
Child Benefit
I understand that earnings (via the taper) will be taken of the housing element first then take 65% of any further benefits the said family receives. So if the family were in receipt of child benefit then wouldn’t this be eaten up and eventually lost by the taper!
OK.
UC Cap:-
The UC cap can only reduce UC - not other benefits. (Similarly, the HB cap only ever reduces HB.)
Child benefit counts when working out your total benefits for cap purposes but it is never reduced by the cap.
UC Income Taper:-
The UC taper is deducted from the UC maximum amount (the max amount will include various elements but the taper reduction is applied to the total not to individual elements in any particular order.) The UC maximum amount may include child elements but child benefit is completely separate benefit and unaffected by the UC taper.
Many thanks - I suppose looking at it another way is that you couldn’t physically work enough hours to equate to a 65p deduction of £500-00 in any event!