If
you receive Universal Credit the amount you get changes if your take-home pay
changes. This includes awards of
backdated pay. If you get additional pay
within a Universal Credit assessment period (month), your Universal Credit
payment will either be less than you normally receive or your income may be too
high to qualify for a payment.
Universal
Credit is calculated on your personal circumstances. Because of this we don’t know how individuals
may be affected.
Q) Will the back dated pay award affect my
Universal Credit Claim?
Yes. If your earnings increase or decrease your
Universal Credit payments will adjust automatically, this will include any lump
sum received from back dated pay awards.
Q) How will my Universal Credit Claim be
affected?
The
2018/19 Local Government pay settlement was agreed on 1 February 2019 and is
scheduled to be in place and paid, with a backdated award expected at the end
of March. This increase together with
the backdated payment means you will either receive less Universal Credit than
normal or you may even earn too much to qualify and your Universal Credit claim
will close. If your claim closes, you
will see a message on your UC Journal telling you about this.
Q) How Do I Reclaim Universal Credit?
Log into your UC journal and select the “Reclaim” tab. You
will find this at the bottom of the screen. This will take you to a new screen
where you will be asked to answer a few simple questions. If you have any
problems doing this, contact your Work Coach or visit your local Jobcentre
Plus.
Q) Do I need to inform Universal Credit of my
backdated pay award?
No, the Council’s payroll team supply Pay As You Earn
(PAYE) information to HMRC on or before the day you are paid. You may have seen this referred to as Real
Time Information (RTI).
HMRC sends relevant data on Universal Credit
claimants to DWP on a daily basis (4 times a day). This means the information
supplied will be with DWP on the same day or on the next day, at the latest.
Q) What is a work allowance in Universal
Credit?
If you and/or your partner are in paid work you may be
able to earn a certain amount before your Universal Credit payment starts to be
affected. This is called a Work Allowance.
There are 2 Work Allowance rates. Which one you get
depends on whether your Universal Credit payment includes help with housing
costs:
· If
you receive money to help with housing costs your Work Allowance will be £198
per month
· If
you do not receive money to help with housing costs your Work Allowance
will be £409 per month
Q) I have a work allowance, how will the back dated
pay award affect my Universal Credit?
For every £1 you earn above your Work Allowance, your
Universal Credit payment will be reduced by 63p.
Q) I am still concerned how this is going to
affect me. Who can I turn to for help?
Angus Council’s Welfare Rights
Service can provide further advice and assistance in this matter. They
offer a free, confidential and impartial service with issues related to welfare
rights and money/debt advice. You can contact them by clicking this link:
An overview of
Universal Credit can be found at www.gov.uk/universal-credit