THOUSANDS of Brits will now be eligible for benefits following a shake up of Universal Credit rules.
The change to the benefits system means 380,000 families can claim extra financial help next year, according to the latest research.
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More people will be eligible for Universal Credit following the government’s decision to cut the taper rate and raise the work allowance.
The taper rate affects those claiming the benefit who are also working but are on low incomes by reducing payments in relation to earnings.
Currently, claimants lose 63p Universal Credit for every pound they earn above a base level, but that will fall to 55p from December.
Meanwhile, the work allowance is the number of hours you can work before the taper rate kicks in – it’s rising by £500 a year from December.
It’s a major win for The Sun’s Make Universal Credit Work campaign, and will allow workers to keep more of the money they earn and incentivise people to take on extra work.
The lower taper rate means it’s easier to qualify for Universal Credit with higher earnings, so thousands more low and middle income households could be eligible.
However, further analysis by the Resolution Foundation found that 75% of the 4.4million households on Universal Credit are worse off after the £20 a week uplift was cut.
That amounts to 3.3million families.
Who is eligible for Universal Credit?
In order to qualify for Universal Credit, you must be on a low income or out of work, and need to be over 18.
You, or your partner, should be under State Pension age and must live in the UK.
You won’t qualify if you and your partner have more than £16,000 in savings between you.
To find out whether you’re eligible for extra help following the changes to the taper rate and work allowance, you can use an online benefits calculator.
How to apply for Universal Credit
You can apply for Universal Credit online by creating a gov.uk account, or logging into your old one if you’ve accessed benefits in the past.
In order to receive the benefit you should submit your claim within 28 days of creating an account.
You will need these details to hand in order to make a claim:
- your bank, building society or credit union account details
- an email address
- information about your housing, for example how much rent you pay
- details of your income, such as payslips
- details of savings and any investments, like shares or a property that you rent out
- details of how much you pay for childcare if you’re applying for help with childcare costs
If you do not provide the right information when you apply it might affect when you get paid or how much you get.
You’ll also have to verify your identity online, so you’ll need proof of identity such as a driving licence, passport or debit or credit card.
People who are struggling with bills or other costs while they wait for their first payment can apply to get an advance.
Otherwise you will have to wait five weeks to receive your cash.
Budget: Massive Universal Credit shake-up so 2million can keep an extra £1,000 a year
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