Five ways to get financial support as Universal Credit hardship payments soar

BRITS who claim Universal Credit can get extra support if they’re struggling financially.

Hardship payments for households on benefits have soared – suggesting many families are facing money troubles.

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Nearly 15,000 claimants applied for loans to cover essential costs after their payments were sanctioned, which means cut, the latest figures showed.

Sanctions were paused during the pandemic, resulting in a sharp drop in hardship loan claims.

But claims have spiked since they were reintroduced in July 2020.

You can be sanction for a number of reasons, such as failing to apply for a particular job or refusing an offer of employment – find a full list here.

How much you’ll have taken off your claim depends on what you’ve done -or not done.

In some cases the standard element of your benefits can be stopped altogether.

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Sanctions only apply to this standard element of your claim. Any housing or childcare elements will still be paid.

Sanctions are split into four categories; lowest level, low level, medium level, and high level.

How long your sanction lasts depends on these categories as well as the number of previous failures within a year.

The hardship payment is roughly 60 per cent of the amount you were sanctioned by in the last month.

But you will need to pay it back, which will reduce your future payments.

In total, 200 hardship claims were handed out between November 2020 and May 2021, according to the i newspaper.

This jumped to 300 in June 2021, 1,200 claims in July and 2,400 in August.

Applications peaked during the autumn, with 4,700 recorded in September and 6,400 in October, the data, revealed after a Freedom of Information request, showed.

If you’re struggling financially while you’re on Universal Credit, there are ways to access extra support.

Free school meals

Children whose families claim Universal Credit are eligible to receive free school meals.

If you qualify for a free school lunch, you must let the local authority know so they can get extra funding from the government.

Simply click here and type in your postcode to be redirected to your local council’s website and apply.

Some councils ask you to contact the school directly.

Council tax discount

Universal Credit claimants could get help with their council tax bills – and in some cases you could get a 100% discount.

Each council runs its own reduction scheme so how much your discount is worth depends on where you live.

Your circumstances will also have an effect on your discount, such as your earnings, households income, number of children you have and how many people live with you.

Your residency status and what benefits you’re entitled to will also have an impact.

Household support fund

If you’re struggling financially, you might be able to get a grant through the household support scheme.

The amount available and eligibility criteria vary depending on where in the country you live.

For example, if you live in Barnsley, you could get up to £200 in vouchers to spend at supermarkets and shops, and Dorset Council is offering £200 to help with energy costs.

You should contact your local council to find out whether there is any help available in your region.

Check the government website to find out which local authority area you live in.

Help with energy bills

There are several different schemes designed to help people cover energy costs.

If temperatures plummet below zero that could trigger a payment of £25 automatically.

Cold weather payments are made if it hits freezing between November 1 and March 31, to help you pay for the increased energy costs.

The temperature will have to stay that low for seven consecutive days before the cash is handed out.

You can check if the payment applies to you using the government’s postcode checker any time between now and the spring.

The warm home discount is a one-off payment of £140 which is designed to help with the cost of your electricity bill through winter.

The money isn’t paid to everyone automatically, you need to apply for it from your energy firm if you’re on a low income.

The money is taken off your energy bill between September and March.

If you get the guarantee credit element of pension credit and are named on the bill you should automatically qualify for this benefit.

But if you’re on a low income or struggling with bills then you’ll need to apply.

Finally, If you’re in debt to your energy supplier, you might be able to get a grant from the British Gas Energy Trust to help pay it off.

This scheme is available to anyone – you don’t have to be a customer – and you can find out more and apply here.

Several companies also offer a grant scheme for their customers including:

The conditions of each scheme vary, so contact your energy provider to find out more.

Cheaper internet and phone deals

Universal Credit claimants are entitled to cheaper internet deals, so you could save some money by switching.

Currently there are eight social tariffs available from major providers and smaller companies.

Eligibility can vary between them, as can speed, so it’s worth checking before hand.

The cheapest deal out there is from Community Fibre and costs £10 a month for 10mbps, but it’s only available in London.

BT, Hyperoptic and Virgin Media offer the next best prices at £15.

You can find more details on other deals and how to apply here.

This post first appeared on thesun.co.uk