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How can I work out how much someone can earn before they lose UC entitlement altogether?

Carolyn McA
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Adviser, Citizens Advice and Rights Fife

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I was asked by clients yesterday how much they could earn in an assessment period before they have nil entitlement and their claim is closed, and couldn’t answer it. I’ve been trying - unsuccessfully - to work it out from first principles. Can anyone advise? The couple have variable earnings from one full time job which sometimes includes overtime and an on-call allowance, plus a small amount of self-employed earnings for the other partner, and 1 child aged 1. They qualify for the £503 work allowance according to QBC.

Jon (CHDCA)
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Welfare Benefits, Craven CAB, N Yorks

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On QBC, have you seen the ‘Universal Credit Projection’ feature, near the bottom of the Details menu?
It should help you to answer this question.

edit: I guess the formula for when earnings extinguish UC would be along the lines of:

( max UC / 0.63 ) + work allowance

[ Edited: 7 Aug 2019 at 04:51 pm by Jon (CHDCA) ]
Charles
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Take the maximum amount, divide it by 0.63 and add £503.

That’s assuming they haven’t got capital over £6000, and that the MIF doesn’t apply.

Jon (CHDCA)
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Charles - 07 August 2019 04:51 PM

Take the maximum amount, divide it by 0.63 and add £503.

Oops, I just edited that in above as you posted.

For anyone who uses QBC, the feature I mentioned above is very neat, I wish I’d been aware of it before, I only noticed it recently.

Carolyn McA
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Thanks both - I’m afraid my algebra has got very rusty. As Charles mentioned the MIF, this is probably a good place/time to raise this - my understanding is it should not be applied because the self-employed earner is responsible for a child under two . This is based on CAB’s AdviserNet stating that the MIF is not applied for anyone responsible for a child under three, but I’ve not seen that mentioned anywhere else, including n threads on here discussing MIF. Is it correct? Even if it isn’t, the client has only started self-employment in the last few weeks so is in her ‘start-up’ period.

Daphne
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Yes MIF only applies if you are subject to all work-related requirements - see reg 62(1)(b)UC Regs

edit - which was substituted in by reg 4 of SI.No.2888/2014

[ Edited: 8 Aug 2019 at 09:06 am by Daphne ]
Charles
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Carolyn McA - 08 August 2019 08:35 AM

Thanks both - I’m afraid my algebra has got very rusty. As Charles mentioned the MIF, this is probably a good place/time to raise this - my understanding is it should not be applied because the self-employed earner is responsible for a child under two . This is based on CAB’s AdviserNet stating that the MIF is not applied for anyone responsible for a child under three, but I’ve not seen that mentioned anywhere else, including n threads on here discussing MIF. Is it correct? Even if it isn’t, the client has only started self-employment in the last few weeks so is in her ‘start-up’ period.

This is correct, but the couple would have to jointly nominate the self-employed earner as the “responsible carer” of the child. It is not enough to simply be “responsible” for the child.

Gareth Morgan
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Jon (CHDCA) - 07 August 2019 04:29 PM

, have you seen the ‘Universal Credit Projection’ feature, near the bottom of the Details menu?
It should help you to answer this question.

edit: I guess the formula for when earnings extinguish UC would be along the lines of:

( max UC / 0.63 ) + work allowance

On Ferret’s systems cut-off for benefits appears as part of the standard report; for income and earnings.

MikeMay
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Jon (CHDCA) - 07 August 2019 04:29 PM

On QBC, have you seen the ‘Universal Credit Projection’ feature, near the bottom of the Details menu?
It should help you to answer this question.

We had no idea this tool existed. Tragic as it is we’re quite excited by it