TC or UC. BOC help needed

It’s Friday afternoon and I’m running round in circles trying to do some BOC’s for a client. Help and advice would be greatly appreciated.

It’s for a couple who are self employed. Husband works 30 hours. Wife works 16 hours as a disabled worker. Wife gets PIP EDL & EM. Their income last year was £8,200 (less expected this year). S/E more than 12 months. TC is £151.31 pw.

Current weekly amount £454.44

Claiming CA would add £64.60 = £519.04

If they were to claim UC and CA = 381.80

UC with CA and LCW = £414.43

UC with CA and LCWRA = £490.19

Are these calcs correct? Looks like my advice is to stay on TC and claim CA.

Thanks

I haven’t got the patience to work through all the situations but If I just look at your last scenario I would expect this:

UC maximum award = standard couple allowance plus LCWRA element plus carer element = £498.89 + £328.32 + £156.45 = £983.66/month.
Ignore CA because it is deducted £ for £ as unearned income and carer element payable regardless of whether CA claimed.
LCWRA and carer so no work search requirement therefore MIF not applicable and don’t have to check if it is met.
You haven’t mentioned HB so assume no housing costs, therefore work allowance is £409/month.
Take income as £8,200/12 = £683.33/month (although you said you expected it to be less this year)
£683.33 less WA = £274.33 x 0.63% = £172.83 earnings deduction from maximum UC amount
UC payable = £810.83/month
This is equivalent to £187.11/week, plus PIP of £145.35/week = £332.95/week

If only LCW rather than LCWRA they lose the LCWRA element which is equivalent to £&5.77/week so UC payable would drop to equivalent of £257.23/week.

These figures are very different yours so don’t know what we have done differently.

One factor to consider is that UC will be calculated on actual income each month whereas TC will be calculated on last year’s (higher) income unless the difference is more than £2,500.

Another factor is that if they claim CA this will be taken into account as income for TC so TC may change (although there could be a year delay before this kicks in).

Fairly certain that people be treated as disabled workers for TC are one of the groups that have been highlighted as worse off under UC.

Thanks lanb. Our figures look the same when you add in the earnings. So they are definitely losing out on quite a lot.

Phil R - 29 October 2018 09:08 AM

Thanks lanb. Our figures look the same when you add in the earnings. So they are definitely losing out on quite a lot.

Duh! I forgot to add the earnings back!!