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: money@the-sun.co.uk.

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 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.

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.