Well, like a child at Christmas I've been waiting what feels like years for the Universal Credit regulations and rates to be released so I can have a go at a Universal Credit calculation.

I thought it would be fun to publish my first ever UC calc on my blog!

Now, before you get too excited, this is me having a try for the first time, after a very quick scan of the UC regulations which you can find here: http://www.legislation.gov.uk/ukdsi/2013/9780111531938/contents

PLEASE NOTE - UC calculation is for guidance only and may be subject to change. I really hope I haven't missed something or miscalculated any elements of the calculation - BUT if I have missed something or miscalculated anything, drop me a note at http://www.twitter.com/income_max or lee.healey@incomemax.org.uk and I'll a) change the calc and b) credit you with the change!

This is all designed to stimulate the debate and get us more aware of how UC will work.

This is new territory for all of us benefit advisors and there'll be months of studying to come. But I think it'll give everyone a good idea of how Universal Credit calculations will work. Once I know I'm on the right track, I'll publish some more!

OK (twitches nervously) HERE GOES!

Current system

Lone parent aged 30. 1 child aged 4. Child Benefit £20.30 per week. Working 6 hours and earning £60 net per week part-time. Rent £110 per week. Council Tax £25 per week. Has savings of £8000. Child Tax Credit £62.22 per week.

Current income

Income support £71 applicable amount - £40 wages (£20 disregard) - £8 savings tariff income = £23 per week

Child Tax Credit £62.22 per week

Child Benefit £20.30 per week

Housing Benefit £110 per week (assuming all £110 eligible rent)

Council Tax Benefit £25 per week

Income IN HAND after rent and council tax paid:

PT Earnings £60 per week

Income Support £23 per week

Child Benefit £20.30 per week

Child Tax Credit £62.22 per week

TOTAL = £165.52 per week (£717.25 per month)

New system – Universal Credit calculated MONTHLY – some figures changed below to reflect this!

Lone parent aged 30. 1 child aged 4. Child Benefit £20.30 per week. Working and earning £260 net per month part-time. Rent £476.67 per month. Council Tax £108 per month. Has savings of £8000.

Universal Credit

Standard Allowance £311.55 per month

Child element £272.08 per month

Housing element £476.67 per month

Maximum UC = £1060.30 per month

Click here for rates table https://twitter.com/Income_MAX/status/278412254368657408/photo/1

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Earned/Unearned Income

Savings yield = £34.80 per month (8 x £4.35) See UC savings calc regs here http://www.legislation.gov.uk/ukdsi/2013/9780111531938/regulation/72

Earnings income = £0 (£263 per month lower work allowance)

Click here for UC work allowances (disregards) http://www.legislation.gov.uk/ukdsi/2013/9780111531938/regulation/22

Child benefit = £0 (CHB not listed within unearned income and is not taxable income)

Actual Universal Credit Total = £1060.30 - £34.80 = £1025.50 per month

BUT – Has to pay £476.67 rent direct to landlord

Claims Council Tax Support from Local Council (assume at present Ctax covered in full by local council)

Universal Credit left in hand after rent is paid £548.83 per month (£126.65 per week)

Income IN HAND under Universal Credit rules once rent and council tax paid

Universal Credit £548.83 per month (£126.65 per week)

Earnings £260 per month (£60 per week)

Child Benefit £20.30 per week

Total = £206.95 per week (£896.78 per month)

Under Universal Credit, this customer is BETTER OFF BY £41.43 per week (£179.53 per month) once rent and council tax is paid. 

Lee H