Hey Mike.
My clients want to move in together as a couple.
They are both on Universal Credit.
What will happen to their claims?
Thanks
Amy
Hello Amy
For more information about who counts as a couple within the benefits system, click here.
For childless people, you must think about this in four stages:
Stage One: Standard Allowances
Couples have to make a joint claim for Universal Credit.
The standard allowances of Universal Credit are:
- Single under 25 £265.31.
- Single 25 and over £334.91.
- Couple both under 25 £416.45. So the reduction when moving in together is £113.55.
- Couple one or both 25+ £525.72. So the reduction when moving in together is either £144.10 or £74.50 depending on the partners’ ages.
Stage 2: Extra Bits
In UC for adults, there are extra elements for carers (£168.81) and for people who have LCWRA (£354.28).
Any one person can qualify for only one extra element.
Only one LCWRA element can be allowed for each couple – even if both partners have LCWRA.
If one partner has PIP-DL and LCWRA, that partner can qualify for the LCWRA element and the other can qualify for the Carer Element.
Stage 3: Work Allowances
If either partner has LCW, they qualify for a work allowance to be deducted from the couple’s joint earnings each month.
For renters, the work allowance is £344, which can increase the UC by upto £189.20.
For people who don’t pay rent, the work allowance is £573, which can increase the UC by upto £315.15.
Stage 4: Housing Costs
If the partners are private renters under 35, their housing costs element would be based on the one-bedroom-self-contained-accommodation rate of local housing allowance, rather than the shared-accommodation rate that is allowed to single people under 35
What if they had children?
If they had children there would be considerations relating to work allowances, bedroom-entitlements for housing costs element, and the benefit cap.
Feel free to get in touch if you need to discuss these.