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Universal credit and the grace period

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4 months 4 weeks ago #292608 by Jane52
Can someone explain what the grace period is and how it works. Have just been asked to give 13 months past earnings information to DWP. I am assuming this is net earnings. Have just moved over to univeral credit - transitional protection from tax credits. Transitioned over under managed migration.
I was reading that if you are on pip, which I am, grace period does not apply to you.
I am nervous to mention pip, though UC do know I receive it, as do not want to activate a pip review.

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4 months 4 weeks ago #292626 by Gary
Replied by Gary on topic Universal credit and the grace period
Hi Jane52

As you rightly stated, as you are in receipt of PIP then the benefit cap does not apply, there are other benefits where the benefit cap does not apply.

The benefit cap does not apply during a "grace period " This is a period of nine consecutive months, which begins on either;

~ the first day of the assessment period during your currentUC award in which your earnings are less than the earnings exemption threshold that applied at the time; or

~ the day after the day on which you ceased paid work prior to your current UC award,
whichever is most recent. in each of the 12 months before the first day of your grace period, your monthly earnings must have been at or above the earnings exemption threshold that applied at that time.

PIP will not affect you UC claim.

Gary

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