Universal Credit Q&A – how does flexible furlough and working part-time affect my benefits
WORKERS who are concerned about returning to their jobs after being furloughed or lockdown may be confused about the new rules.
Some may also be receiving Universal Credit as well as their furlough pay.
On furlough, you get 80 per cent of your wages paid - up to a maximum of £2,500 a month.
It applies to workers who were on a payroll on February 28, and your employer can choose to top up your pay to the full 100 per cent.
But how does this work if you are asked to work part time while still on furlough?
Our welfare expert Nichola Salvato is on hand to help answer your queries.
Nichola, who has four years experience in welfare rights, helps one reader with his options.
Do you have a question? Email: [email protected].
Dear Nichola,
I have been on furlough since the end of March, I've been on 80 per cent pay and get a top up of Universal Credit.
My employer has said that although they are going to extend my furlough until October, (I’m so relieved as I was worried we would be made redundant) they want me to come back to work part time on July 1, they haven't said how many hours they want me to do yet, except that it might vary each week depending on workload.
I'm very confused. Can I go back and be furloughed at the same time? Will I just be getting the 80 per cent furlough pay or will I get more and will I still be able to get Universal Credit too?
Many thanks for your help.
Kev, via Facebook
Dear Kev,
Thank you for your message, it's really good to hear that you are gearing up to go back to work and that your employer has been able to sustain the business so that no redundancies have been necessary.
As you mention in your question, the government announced last month that the furlough scheme that had been due to finish at the end of June has now been extended until at least October.
They have made some changes to who pays the furlough wage however, and also built in some flexibility so that people can return to work gradually while still benefiting from the scheme.
The first thing to mention about the updated rules, is that in order to be eligible for the scheme beyond July 1, the employee needs to have already been furloughed on June 10, which is the case for you.
The second thing you will be pleased to hear is that you will continue to get 80 per cent of your salary while furloughed until the end of the scheme in October.
Your employer will have to contribute more towards your wages but you'll continue to get the 80 per cent.
Working part time whilst furloughed has been introduced to help businesses and employers transition back to working life on a gradual basis while businesses rebuild and demand for products and services increases over the course of the relaxation of lock down.
What to do if you have problems claiming Universal Credit
IF you're experiencing trouble applying for your Universal Credit, or the payments just don't cover costs, here are your options:
- Apply for an advance - Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it's a loan which means the repayments will be automatically deducted from your future Universal Credit payout.
- Alternative Payment Arrangements - If you're falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you're part of a couple.
- Budgeting Advance - You may be able to get help from the Government for emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.
- Cut your Council Tax - You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your existing ones aren't enough to cover your rent.
- Foodbanks - If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the
The way this works is quite simple, if you would normally work a 40 hour week, your organisation can ask you to return but on a 20 hour basis.
So you would be working 50 per cent of your contracted hours, and furloughed for the other 50 per cent.
You would receive 50 per cent of your normal salary for the hours you work from your employer, and you would receive 80 per cent of the remaining 50 per cent of your salary through the furlough scheme.
The Sun has explained how to calculate your flexible furlough pay in a handy guide.
Your employer can vary the hours week by week, for example you may work 5 hours in the first week, 10 in the next and so on and your earnings will always reflect the above example, full wages for the hours you work and 80 per cent of the rest through the furlough scheme.
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With regard to your Universal Credit award, really nothing changes, as long as your earnings and your savings are low enough to qualify, you will continue to get a monthly payment.
HMRC will automatically update UC with your earnings for the month and it doesn't matter what combination of earnings and furlough pay you get, if it's low enough you still qualify.
Wishing you the best of luck with your gradual return to work!
Nichola
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