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<p>Universal Credit is a means tested system of support and where an individual claims
Universal Credit, their award is adjusted to take account of any other financial support
that the claimant is already receiving – including earnings, income and benefits.</p><p>
</p><p>Maternity Allowance is a benefit paid by the State which is unearned income
for Universal Credit purposes. Unearned income that is available to help meet daily
living costs is taken fully into account in determining the amount of Universal Credit
that an individual can be paid. As such, in determining the amount of Universal Credit
that is available, Maternity Allowance is deducted pound for pound from the total
value of the award. This principle applies to other benefits, such as new style Jobseeker’s
Allowance and new style Employment and Support Allowance. <br></p><p>Maternity Pay
(SMP) is more akin to earnings and is treated as a form of earnings in common with
other statutory payments paid by employers. As a result, when adjusting the Universal
Credit award, as with other earnings SMP is subject to the work allowance and tapering
rules that are built into Universal Credit. Claimants retain 37p for every pound of
earnings (or more if they are entitled to a work allowance).</p>
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