Universal Credit

(asked on 27th October 2020) - View Source

Question to the Department for Work and Pensions:

To ask Her Majesty's Government, further to the Written Answer by Baroness Stedman-Scotton 16 October (HL 8845), what are the Universal Credit earnings for a claimant earning £1,000 a month and paying £100 a month in relievable pension contributions into (1) a net pay arrangement pension scheme, and (2) a relief at source pension scheme.

Answered by
Baroness Stedman-Scott Portrait
Baroness Stedman-Scott
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 10th November 2020

Pension contributions are not used in the calculation of earnings. The earnings figure used in the calculation of UC entitlement is gross earnings less any occupational or personal pension contributions, tax and National Insurance contributions. From this figure any applicable work allowance and the earnings taper is applied to establish the amount of earnings to be used for a claimant in the calculation of their UC award.

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