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UC and NHS pay deal
Client will be receiving lump sum of £2000 from NHS pay deal. Can’t find anything to say this will be disregarded in any way so assume this will be treated as any other pay and her UC claim will stop for one AP and she will have to reclaim.
She will have the option to receive in instalments so it will depend on the maths as to whether this will be a better option
Does anyone know if there is any exception for this particular payment to be disregarded?
If there is no one-off disregard (and I don’t think there is), it would be much better to have the money as a lump sum than receive it in instalments. Any of the arrears payment above the point at which the last 1p of UC is extinguished will be free money that permanently escapes the UC taper - because it will be less than the surplus earnings disregard.
If it’s paid by instalments, more and probably all of it will be tapered over time.
The arguments against this that are raised in Johnson-style double salary cases (risk of benefit cap if worked for < 1 year, breaking continuity of earnings for future benefit cap grace period) don’t apply, because the claimant will still have her regular earnings at the new rate in the next AP.