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Impact of one-off payments on members' benefit entitlement

One-off payments, such as bonuses, can affect how much you are entitled to. Make sure you know where to go for advice

04 June 2024

0 min read

One-off payments

Many Usdaw members receive one-off payments as bonuses or transitional payments.

If you are claiming means-tested benefits such as Tax Credits, Universal Credit, Housing Benefit or Council Tax, if you receive Carer’s Allowance or are liable to repay a student loan, the one-off payment could affect your benefits.

This is the case whether payment is taken in cash through the payroll, or in shares, where the value of the shares will be the amount assessed for benefits.

Which benefits are affected

Below is a list of the main benefits that are affected by one-off payments and which require you to report a one-off payment, with some general advice about how your benefit may be affected.

Usdaw cannot offer individual advice on benefits, but for more information on support and benefits, see our leaflet below ‘Worried about Money’.

There are links to services that can give individual advice at the back of the booklet.
 
You can check all the benefits to which you are entitled on the Benefits Calculator at Turn2Us.

When do you need to report an increase in income?

Check which benefits need you to report a one-off payment or other rise in your income. You will need to advise each of the relevant agencies separately. ALWAYS keep a record – make a copy of any letters and record the date, time and operator name of any phone call.

Tax Credits
Report as soon as possible if your income will increase to more than £2,500 above your income for the previous tax year (to 5 April). You do not need to report increases which are less than this.
Find out more.

Housing Benefit
Report any increase immediately to the correct Council Department. 
Find out more.

Council Tax support
Report any increase immediately to the correct Council Department. 
Find out more.

Carer’s Allowance
Report if the pay you receive in any one pay period will average more than £110 per week (i.e. more than £440 of 4-weekly pay).
Find out more.

Universal Credit
Your benefit is reduced but you don’t need to report extra payments.
If you receive no UC one month due to higher income, you need to inform them if your income will reduce again the next month.
Find out more.

Student Loan
No need to report extra pay as repayments are taken automatically. 
Find out more.

Disability Benefits
DLA and PIP are not affected by your income so you do not need to report changes.

Worried about money? Know Your Rights (Leaflet 385)

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Worried about money? Know Your Rights (Leaflet 385)

16 April 2024

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