Making work pay | North West rent figures This example shows how a single person aged 25 or over, earning the National Minimum Wage, with rent of £85 a week (£369 a month), is better off in work with Universal Credit than they are under the current system. With Universal Credit claimants’ take home pay is topped up with Universal Credit payments to make sure they are better off for every additional hour they work. 1200 £1,044 per month Total income per month 1000 £835 £875 £914 £1,078 per month £954 per month per month per month per month £960 £684 per month 800 600 £973 per month per month £706 £684 per month £707 £746 £786 per month per month per month Universal Credit payment and take home pay per month Current benefits system and take home pay 400 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Hours per week N.B. Total income consists of net earnings (after Tax and National Insurance) and benefit income, including help with housing costs. All figures are set to 2014/2015 rates. Page 1 of 2 Making work pay Breakdown of the figures for a single person aged 25 or over, working part-time at the National Minimum Wage, with rent of £85 a week (£369 a month). Universal Credit 8 hours Earnings UC standard allowance and housing costs element less deduction for earnings* Earnings plus Universal Credit 20 hours £226 Earnings 30 hours £565 Earnings + £609 UC standard allowance and housing costs element less deduction for earnings* + £389 UC standard allowance and housing costs element less deduction for earnings* £835 Earnings plus Universal Credit £954 Earnings plus Universal Credit £823 + £221 £1,044 * A work allowance of £111 (for a single person with housing costs element) is deducted from earnings after which 65% of earnings are taken into account for calculation. Current system 8 hours 20 hours Earnings£226 Earnings Jobseeker’s Allowance plus Housing Benefit + £480 Housing Benefit + £221 = £706 = £786 N.B. All earnings are net take home pay, after Tax and National Insurance deductions. 30 hours £565 Earnings £823 Working Tax Credit Housing Benefit + £101 + £36 = £960 Page 2 of 2