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Game_of_Homes

Universal Credit - Is this calculation correct?

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I've just put some figures into the entitled to calculator and I am quite shocked by the results and not sure if they are correct or not.

A couple with 2 children, a girl and a boy, both working 16 hours per week on minimum wage, living in a private rental in London, so total yearly income of approx £13,000.

On top of that work income, the calculator says they would get approx £22,000 in benefits. Is this correct? That means a total income of £35,000 on part time hours. Surely the calculator is wrong? 

 

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1 minute ago, Game_of_Homes said:

I've just put some figures into the entitled to calculator and I am quite shocked by the results and not sure if they are correct or not.

A couple with 2 children, a girl and a boy, both working 16 hours per week on minimum wage, living in a private rental in London, so total yearly income of approx £13,000.

On top of that work income, the calculator says they would get approx £22,000 in benefits. Is this correct? That means a total income of £35,000 on part time hours. Surely the calculator is wrong? 

 

Nope, that’s probably correct. Don’t forget too that the bennies are not taxed so worth far more than 22k in wages. Plus, it opens lots of other doors such as free prescriptions, free school meals, this and that.... 

now, ask yourself, is it worth working?  

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Posted (edited)
14 minutes ago, Cunning Plan said:

OK - here goes - but stick with me, lots of numbers,

Lets take two mythical neighbours, both single parents of 3 kids - 13 year old twin girls and an 11 year old son.

They both live next door to each other in 3 bedroom houses.

One works in the city as a solicitor, the other does 5 hours per day childcare @£10 per hour (looking after her solicitor neighbour's kids when she is at work)

    Solicitor Child carer
Income   95000 13000
- Income Tax   27822 712
-NI   5114 629
Net pay   62064 11659
Benefits      
Child Allownace     2449
Tax Credits     5874
Working Tax credit     806
Net Income   62064 20788
       
Rent   17680 17680
Housing Benefit   0 17680
Council Tax   2000 1000
Childcare    13000  
Childcare NI   1560  
Train Fare   3268  
station parking   1560  
petrol   520  
child school lunches   900 0
holiday cover   2000  
total costs   42488 1000
       
Disposable Income   19576 19788

 

Note I haven't included cost of clothes etc for the solicitor which will be higher.

Figures were all based on allowable claims last year per gov't websites.

Hope you are still in control Mr 1%

Edited by eek

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7 minutes ago, Cunning Plan said:

Thanks @eek. Never ceases to amaze me.

I've made it into a table to make it a bit clearer for everyone...

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5 hours ago, Game_of_Homes said:

I've just put some figures into the entitled to calculator and I am quite shocked by the results and not sure if they are correct or not.

A couple with 2 children, a girl and a boy, both working 16 hours per week on minimum wage, living in a private rental in London, so total yearly income of approx £13,000.

On top of that work income, the calculator says they would get approx £22,000 in benefits. Is this correct? That means a total income of £35,000 on part time hours. Surely the calculator is wrong? 

 

No probably correct. I did the same a year or so ago. Assumed 2 kids, part time work and IIRC wife not working so I 'earned' around 9,500 and got 24,000 in extras so would need a full time job paying 55,000 rather than 16 hours at min wage. Totally insane.

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And the high earner will probably have huge university debts to pay back too. 

I thought the whole point of UC was to change the system? If it's still paying out the same amount what was the point of merging it, what a waste of taxpayer money!

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9 hours ago, eek said:

One works in the city as a solicitor, the other does 5 hours per day childcare @£10 per hour (looking after her solicitor neighbour's kids when she is at work)

    Solicitor Child carer
Income   95000 13000
- Income Tax   27822 712
-NI   5114 629
Net pay   62064 11659
Benefits      
Child Allownace     2449
Tax Credits     5874
Working Tax credit     806
Net Income   62064 20788
       
Rent   17680 17680
Housing Benefit   0 17680
Council Tax   2000 1000
Childcare    13000  
Childcare NI   1560  
Train Fare   3268  
station parking   1560  
petrol   520  
child school lunches   900 0
holiday cover   2000  
total costs   42488 1000
       
Disposable Income   19576 19788

 

I can see how unfair it is and how the numbers stack up. Despite the financial unfairness I know which person I would prefer to be. Clue and it aint the one on benefits.

I imagine what it would be like to not have the structure and stimulation of a job to go to every day. From experience when I did temporary/contract jobs the short periods in between new assignments were dreadful. It wasn't just the worry of how long before the money ran out, but worse the boredom. Perhaps it says something about me, but there were only so many walks, listening to the radio, watching TV, gardening, etc past times, that could keep my interest. I found it terribly depressing. Fortunately they were only relatively short periods, the longest IIRC was two, maybe three months.

And then of course the person on benefits will find their income dramatically reduced when the children leave school. No career prospects because of the long break from work. Whereas the employed person will, generally, have reached a more senior position and be in a much better place both financially and mentally. 

The appeal of money for nothing can be tempting but it is not a life style choice for me.

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3 hours ago, sleepwello'nights said:

I imagine what it would be like to not have the structure and stimulation of a job to go to every day.

26 years now with "no structure" not missed it at all. Of course if you are stuck in a UK city or suburb it could be pretty bleak but there are a multitude of alternatives.

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33 minutes ago, sexton said:

26 years now with "no structure" not missed it at all. Of course if you are stuck in a UK city or suburb it could be pretty bleak but there are a multitude of alternatives.

What do you do?

I've still got a couple of small businesses on the go, gives me a bit to do, but you can see I spend a lot of time on here. 

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2 hours ago, sleepwello'nights said:

What do you do?

I've still got a couple of small businesses on the go, gives me a bit to do, but you can see I spend a lot of time on here. 

We travelled a lot the first twenty now content to just live. Firewood, lawn mowing, gardening, tree felling, snow shovelling. Electronic projects, computer fiddling, fixing clocks. Keeping the moat clear and fixing the bridge.

IMG_20160608_085502.jpg

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