MILLIONS of hard-up Brits on Universal Credit and benefits will see payments rise from today.

It’s the second year in a row welfare payments have increased after a six year benefit freeze.

Benefit payments will rise from today

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Benefit payments will rise from todayCredit: Getty

The increase was confirmed after the consumer prices index (CPI) level of inflation remained low at 0.5% for September last year.

Universal Credit claimants will also continue to benefit from a £20 a week uplift, which was introduced last year as a temporary measure to get hard-up Brits through the coronavirus crisis.

Here, we explain everything you need to know about how the rise affects your benefit payments:

1. Universal Credit

Universal Credit will rise from today inline with September 2020’s rate of inflation, which was 0.5%.

Claimants will also continue to benefit from a £20 a week coronavirus uplift, which has been extended until September, after which payments will then significantly drop from October.

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 by applying for a Council Tax Reduction. Alternatively, you might be entitled to Discretionary Housing Payments to help 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 Trussell Trust website.

Below, we explain how your payments will change from Tuesday through to the end of September.

We explain how your payments will change from October separately.

How much you’re entitled to depends on your individual circumstances, including your age, whether you have any disability and if you have children or are a carer.

Standard allowance (per month)

  • For those single and aged under 25, the standard allowance will rise from £342.72 to £344
  • For those single and aged 25 or over, the standard allowance will rise from £409.89 to £411.51
  • For joint claimants both under 25, the standard allowance will rise from £488.59 to £490.60
  • For joint claimants where one or both are 25 or over, the standard allowance will rise from £594.04 to £596.58

Extra amounts for children

  • For those with a first child born before April 6, 2017, the extra amount is going up from £281.25 to £282.50
  • For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is going up from £235.83 to £237.08
  • For those with a disabled child, the lower rate addition payment is going up from £128.25 to £128.89 and the higher rate from £400.29 to £402.12

Extra amounts for limited capability for work

  • For those deemed to have limited capability for work, the extra amount is going up from £128.25 to £128.89
  • For those deemed to have limited capability for work or work-related activity, the extra amount is going up from £341.92 to £343.63

Extra amounts for being a carer

Universal Credit claimants can get an additional amount if you’re caring for a severely disabled person for at least 35 hours a week.

The amount you get a month will rise from £162.92 to £163.73.

Increased work allowance

  • The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £512 to £515
  • The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £292 to £293

2. Housing benefit

Three million families who claim housing benefit to help cover the cost of rent due to unemployment or low-income may see payments rise from today.

The personal allowance, which forms part of the calculation of how much housing benefit you’re entitled to, is going up from today.

But that doesn’t necessarily mean you will definitely get more money.

The way the benefit is calculated is complicated, so speak to your local council or JobCentre Plus to see how it affects you.

Here is how the personal allowances are changing from today:

Single person

  • Aged under 25: Increasing from £58.90 to £59.20
  • Any age and on main phase ESA: Increasing from £74.35 to £74.70
  • Aged between 25 and state pension credit age: Increasing from £74.35 to £74.70
  • Has reached pension age: Increasing from £187.75 to £191.15

Lone parent

  • Aged under 18: Increasing from £58.90 to £59.20
  • Any age and on main phase ESA: Increasing from £74.35 to £74.70
  • Aged between 18 and state pension credit age: Increasing from £74.35 to £74.70
  • Has reached state pension age: Increasing from £187.75 to £191.15

Couple

  • Both aged under 18: Increasing from £89 to £89.45
  • One or both aged between 18 and state pension credit age: Increasing from £116.80 to £117.40
  • Any age and on main phase ESA: Increasing from £116.80 to £117.40
  • One or both have reached pension age: Increasing from £280.85 to £286.05

Other

  • Dependent child/young person aged under 20: Increasing from £68.27 to £68.60.

Some claimants qualify for one or more additional amounts called premiums.

For example, you could be entitled to extra cash if you care for a disabled child.

These amounts are increasing too from April – speak to your nearest JobCentre Plus to see what you’re entitled to.

Universal Credit

Housing benefit is being replaced by Universal Credit.

For those already on Universal Credit, non-dependants’ housing cost contributions are going up from £75.15 to £75.53.

These contributions are deductions taken from your Universal Credit housing element for adults who live with you on an informal basis.

For example, this could be a relative who doesn’t pay rent.

In most cases, the DWP expects a non-dependant adult household member to contribute to your rent.

3. Child benefit

Millions of households will get a child benefit payment boost from today.

Child benefit is paid to families with kids up to the age of 16 – or 20 if they are in full-time education or registered on a government-approved course.

It’s paid every four weeks and there’s no limit to how many children you can claim for.

For the eldest child, or if you only have one, households now get £21.15 per week, up 10p from £21.05.

You’ll also get £14 per week for any additional children from today – up 5p from £13.95.

It means the monthly payments are now £84.60 for an eldest or only child, up from £84.20, and £56 for any additional children, up from £55.80.

Over the course of 12 months, this will boost your payments by £5.20 for an eldest or only child, and by £2.60 for any additional children.

How to apply for pension credit

YOU can start a pension credit application up to four months before you reach state pension age.

You can claim any time after you reach state pension age but your claim can only be backdated for three months.

To claim, you will need:

  • your national insurance number
  • information about your income, savings and investments
  • your bank account details, if you’re applying by phone or by post

If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.

You can apply online via Gov.uk if you’ve already claimed your state pension or you’re not responsible for children.

If not, you can apply by calling 0800 99 1234 or by printing out, completing and posting this online form.

4. Pension credit

Retirees claiming pension credit will see payments rise from £173.75 to £177.10 a week.

The benefit supports those who would otherwise be in poverty in retirement.

Those eligible are also able to claim a free TV licence.

5. Attendance allowance

Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.

It’s paid at two different rates and how much you get depends on the level of care that you need because of your disability.

The higher rate rises to £89.60 today, up from £89.15, while the lower rate has gone up from £60 to £59.70.

6. Carer’s Allowance

You can claim Carer’s Allowance if you care for someone at least 35 hours a week and they get certain benefits.

You can also claim the support if you provide care remotely during the coronavirus outbreak.

This includes giving emotional support over the phone or online.

Today, the rate increases from £67.25 to £67.60.

7. Disability Living Allowance

The Disability Living Allowance is being replaced by Personal Independence Payment (PIP) for disabled people.

You can only apply for DLA if you’re under 16.

Older people whose DLA claim hasn’t come to an end may see payments go up from today.

The care component highest amount rises to £89.60 from £89.15, the middle amount rises to £60.00 from £59.70, and the lowest amount goes up to £23.70 from £23.60.

The mobility component higher amount is now up to £62.55 from £62.25 and the lower amount goes up to £23.70 from £23.60.

8. Employment Support Allowance

Employment Support Allowance (ESA) tops up workers’ pay if they’re on a low income.

For under 25-year-olds, the rate is increasing to £59.20 from £58.90, and for those age 25 and older payments will go up to £74.70 from £74.35.

9. Incapacity benefit

Incapacity Benefit is being replaced with Employment and Support Allowance (ESA).

You’ll be reassessed if you’re already claiming Incapacity Benefit, to decide if you’re capable of work or eligible for ESA.

But if you are still claiming it, long-term payments will rise to £114.70 from £114.15.

10. Jobseekers Allowance

Jobseekers Allowance (JSA) supports those who are out of work while they look for a job.

It is being replaced by Universal Credit but if you are still claiming it you’ll see payments go up from today.

For under 25-year-olds, contribution-based and income-based payments will go up to £59.20 a week from £58.90, and to £74.70 from £74.35 a week for those who are older.

11. Maternity, paternity and shared parental pay

Maternity, paternity and shared paternal pay supports parents who have to take time off work to have a baby.

Statutory pay will rise to £151.97 a week, up from £151.20.

12. Personal Independence Payment

Personal Independence Payment (PIP) can help with the extra costs that come with living with a long term physical or mental health condition or disability.

Payments for the daily living component rise to £89.60 from £89.15 for enhance and £60 from £59.70 for standard.

Rates for the mobility components rise to £62.55 from £62.25 for enhanced and £60 from £59.70 for standard.

Top tips to boost your pension pot

DON’T know where to start? Here are some tips from financial provider Aviva on how to get going.

  • Understand where you start: Before you consider your plans for tomorrow, you’ll need to understand where you stand today. Look into your current pension savings and research when you’ll be eligible for the state pension, and how much support you’ll receive.
  • Take advantage of your workplace pension: All employers are legally required to provide a workplace pension. If you save, your employer will usually have to contribute too.
  • Take advantage of online planning tools: Financial providers Aviva and Royal London have tools that give you an idea of what your retirement income will be based on how much you’re saving.
  • Find out if your workplace offers advice: Many employers offer sessions with financial advisers to help you plan for your future retirement.

13. State Pensions

Retirees will see their state pension boosted by up to £230 a year from today.

The government confirmed last November that the state pension will rise by £4.40 a week, totalling a £228.80 increase over the year.

The move means the new state pension rises from £175.20 a week to £179.60 from today.

14. Statutory Parental Bereavement Pay

Parents who have to take time off work if their child dies before they turn 18, or if they have a stillbirth after 24 weeks of pregancy, may be entitled to financial help.

The death or stillbirth must have happened on or after 6 April 2020.

From today, payments will rise by £151.97 a week from £151.20.

15. Statutory Sick Pay

You can get financial support if you’re too ill to work through statutory sick pay.

From today, payments go up to £96.35 from £95.85.

Universal Credit £20-a-week uplift may be extended AGAIN in autumn, minister hints

This post first appeared on thesun.co.uk

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