Universal Credit and full time minimum wage?

[Ds3Sport]

To cut a long story short me and my wife have been receiving Universal Credit for the past 18 months. For the last 12 months of that period I have been on the New Enterprise Allowance scheme. The aim was to turn a busy website I own into at least a basic income. 

 

My wife has been declared unfit for work by both her own doctor and the DWP's assessor. As a result she was awarded a 'Limited capability for work and work-related activity' payment of £336.20 pm. Our total UC comes to £1531 pm. 

 

Thing is, as from January 1st 2020 UC will automatically assume I am on minimum wage...which I am not as it has been a bumpy ride and only recently has any money started to be generated from my business. 

 

So given that there will be an automatic assumption that I am on minimum wage and taking into account that my wife cannot work I am wondering what hit that will have on our monthly UC. I am guessing quite a massive one?

 

The figures for our UC are as follows:

 

My wife's Limited capability for work payment: £336.20 pm

Standard rate as a couple: £498.89pm

Our rent is £875pm and UC pay £696.48 of that.

 

My calculation may be wrong but I think minimum wage per month is something around £1296? 

 

Also as a couple with only one person in work and one on the Limited capability for work and work-related activity list I think we have a "work allowance" i.e what money I can earn before our UC is affected of £287pm? 

After which we lose 63p for every £1 earned? 

 

Not sure how this will all pan out but wondered if anyone here might have experience of this sort of thing and would know approx, what we can expect come next month?

 

MAny thanks.

 

 

 

[unclebulgaria67]

Assuming no current earnings deduction, about £600 a month worse off. Rough calculation.

 

If your wife claims PIP, if you care for her 35 hours a week or more, you can then claim UC carers element and be placed in no work related requirements, so MIF removed.

[Ds3Sport]

Thanks for that. I think the sticking point for me at least is the fact that I was on the New Enterprise Allowance scheme. 

 

That lasts for 12 months and during that time I did not have to look for work etc. However it was made clear to me that at the end of the 12 month period I would be deemed to be on minimum wage even if I had no income. So in other words our UC would be cut regardless of income.

 

My wife's health situation, without going into too much detail is that I cannot leave her on her own, certainly not for any extended period of time. This has been explained to DWP and is the main reason I wanted to go self employed. I can work from home and be here for my wife so it's a win both ways. Obviously helps if I have an actual income though! It's a work in progress but I will get there. I have no choice really.

 

Thanks again for your help.

 

 

[brassnecked]

Might be better to go as full time carer as UB suggested, you would then be guaranteed that income.

[unclebulgaria67]

21 minutes ago, brassnecked said:

Might be better to go as full time carer as UB suggested, you would then be guaranteed that income.

 

Don't put yourself in an awful situation. Seen people struggling with reduced benefits due to MIF, ending up in foodbanks. If there is not much left after housing, council tax and essential bills are paid, then life becomes difficult, with debts being built up.

 

If there are other choices available, then taking action to prevent hardship, must be the way to go..

 

There are many charities that offer advice to those with disabilities and those who care for them, if you do not wish to share more information online.

[brassnecked]

MIF is a millstone for self employed where income is in doubt, as UB indicates it is an assumed income and deducted regardless of actual income or lack thereof.

[Ds3Sport]

Well I can understand the reasoning behind the MIF. It gives you a choice. If you want to be self employed they don't hassle you to find a job but then it is your responsibility to make the money. Otherwise register as unemployed and go through that process of being forced to find a job...and probably one you don't want.

 

It has its pros and cons. Ideally I would make at least enough to cover the outgoings but life is often not like that. Things are not black and white. Lots of shades of grey in between.  And they would say register as unemployed. But then who will be here for my wife? 

 

As mentioned my wife is on this 'Limited capability for work and work-related activity' thing which I don't think is the same as PIP? So not sure how I would claim as her carer or even if that would apply. 

 

Going to be a pretty stressful start to the New Year I think

[brassnecked]

Has she a need for someone to be with her to keep her safe, sort meals etc, any other personal help?  If so cares allowance might be an option, as there would be no look for work conditionality, I think Unclebulgaria could give a better appraisal of what it entails, so hopefully he will be looking in again soon.

[Ds3Sport]

Ok well basically she suffers from clinical depression. She has suicidal thoughts and is on quite a high dose of medication. Even with the meds she still has days when if I were not here I am pretty sure she would end it all. She has trouble focusing on anything and often forgets things like she leaves the gas cooker on, forgets where she puts things, forgets whether she has taken her meds or not and often can't remember what day it is. 

 

I am sure there are people in a much worse situation but I can tell you to say it is stressful for me is a gross understatement! Even when she was working I half expected every day to hear she had thrown herself in front of a train  . That was why I made her go to see her doctor and eventually she was signed off as unfit to work. 

 

Having heard others horrors stories with the DWP I actually count ourselves very lucky! 

 

I think my only option is to find a way to make more money.