IF you get Universal Credit, make sure you know about all the changes that have been introduced this year, as well as those that are still to come.
This includes new rates and rules, the decision about the £20 uplift and changes to how advance loans operate.
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It’s already been a year of upheaval for the benefit, which is claimed by over six million people.
Recently, Universal Credit claimants have had their payments boosted by £1,040 a year (£20 a week) due to the coronavirus crisis – but this is coming to an end soon.
And in November 2020, the Department for Work and Pensions (DWP) closed a loophole, which prevented around 85,000 people on benefits from being left out of pocket if they were paid by their employer twice in a month.
Now, if a worker receives two wage payments in the same month, the benefits system will now register one in the following assessment period.
Here we look at all the changes planned for Universal Credit and explain everything you need to know.
Decision on Universal Credit coronavirus boost
Households on Universal Credit currently get an extra £20 a week (£1,040 a year) in temporary support due to the pandemic.
The boost was rolled out as a temporary measure for 12 months in April 2020, applying to all new and existing Universal Credit claimants.
The deadline has already been extended once, but now ministers are adamant that the boost will be axed from October 6.
Charities are calling for an extension and cross-party ministers are saying they think the uplift should stay in place, but number ten is saying the deadline is set in stone.
That means that in just a few weeks’ time, people will see that their payments drop by £20 each week.
Payments could increase in April 2022
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.
But in April 2021, most Universal Credit payments rose ahead of the 2021/2022 financial year.
Based on this, claimants might see small increases next year in April, however the government is not yet sharing its planned 2022-23 rates.
This year’s rises tended to be around £2 per week, so don’t expect any massive increases.
For instance, here’s how the standard allowance rose in April this year (2021).
Standard allowance (per month) not including the coronavirus uplift
- For those single and aged under 25, the standard allowance rose from £256.05 to £257.33
- For those single and aged 25 or over, the standard allowance rose from £323.22 to £324.84
- For joint claimants both under 25, the standard allowance rose from £401.92 to £403.93
- For joint claimants where one or both are 25 or over, the standard allowance rose from £507.37 to £509.91
Extra amounts for children
- For those with a first child born before April 6, 2017, the extra amount went 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 went up from £235.83 to £237.08
- For those with a disabled child, the lower rate addition payment went 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 went up from £128.25 to £128.89
- For those deemed to have limited capability for work or work-related activity, the extra amount went 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 each month increased 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 went 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 ruse up from £292 to £293
You can see all the changes that happened this year on the government website, which should give an indication of what might happen next year.
But bear in the mind it’s possible the government could freeze rates, leaving them at the same level they are now.
Deductions could go up in April
The government can deduct money from your payment, for instance if another adult lives with you.
Amounts can also be taken out of your Universal Credit to pay back debt in council tax, energy or water bills, rent, court fines, compensation orders, or child maintenance.
Last April, these deductions went up, so it’s possible they could do so again, but we don’t yet have confirmed numbers from the government.
Loan repayment terms are changing in October
Struggling Brits starting a claim for Universal Credit can get advances to help them get by during the five-week wait for the first payment.
An advance is an upfront loan up to the value of the first Universal Credit amount a person is expected to receive.
Advances currently have to be paid back in instalments from future Universal Credit payments over the next 12 months – but that repayment period is set to increase to 24 months from October 2021.
Deductions are currently capped at 30% of the standard allowance, but this will reduce to 25% from the same month too.
However, in the meantime the 30% maximum deduction will go up in April to take account of the increase in Universal Credit.
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.
Over 35,000 families on Universal Credit are set to lose £62 a week this month as Covid-19 rules end.
While in November, a blind student won a Universal Credit legal battle that could help “30,000 people”.
Expecting a Universal Credit payment over the festive break? We explain when you can expect the cash.
Covid pandemic left single father-of-two so broke he struggles to afford food, petrol and even clothing for his kids
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