UNIVERSAL Credit payments will be cut by £20 a week for millions of Brits.
A boost to the benefit was brought in last year because of coronavirus but that will come to an end this Autumn.
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So how will the end of the Universal Credit uplift affect your benefit payments each month?
Here, we explain what the rates are for Universal Credit that will be reduced so you can see how much you’ll get before and after the cut.
How much is Universal Credit with the £20 a week uplift?
The increase in Universal Credit affects only the standard allowance.
The standard allowance is the basic amount that everyone is entitled to if they’re accepted on Universal Credit.
Additional elements can also be claimed for Universal Credit, for example if you have children.
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.
These other elements have not been boosted by the extra Covid payment and will not be affected by the cut.
The standard allowance is different depending on your age and if you’re single or with someone.
Here are the rates of 2021/22 that include the uplift until October 1.
Don’t forget that how much you get can also be affected by other things. like if you’re repaying an advance or are sanctioned.
- For those single and aged under 25, the standard allowance with the uplift is £344
- For those single and aged 25 or over, the standard allowance with the uplift is £411.51
- For joint claimants both under 25, the standard allowance with the uplift is £490.60 (for both)
- For joint claimants where one or both are 25 or over, the standard allowance with the uplift is £596.58
How much is Universal Credit after the £20 a week cut?
From October 1 there will be no uplift and Universal Credit rates will go down by £20 per week.
The new and lower rate of the standard allowance will continue until April 2022, when payments are expected to increase slightly.
Some benefits increase annually at the start of the new tax year to keep up with the rising cost of things like food and rent.
Benefits increased by 1.7% in April 2020 for the first time in six years after the benefits freeze ended, and they also went up in April this year.
Here’s what the monthly standard allowance rate will look like from October 2021 to March 2022 after the uplift is gone.
- For those single and aged under 25, the standard allowance without the uplift is £257.33
- For those single and aged 25 or over, the standard allowance without the uplift is £324.84
- For joint claimants both under 25, the standard allowance without the uplift is £403.93 (for both)
- For joint claimants where one or both are 25 or over, the standard allowance with the uplift is £509.91 (for both)
Again don’t forget that other things can affect how much Universal Credit you get.
Why is Universal Credit being cut?
The government first announced at the start of the pandemic that Brits claiming Universal Credit would get an “uplift” to their benefit payments.
The boost of £20 a week started in April 2020 and was deigned to help people through the pandemic which hit people’s finances.
The increase in payments applies to all new and existing Universal Credit claimants and the cut from October will too.
When the temporary boost was first announced it was expected to last for 12 months and end in April 2021, but the boost to benefits was extended.
Chancellor Rishi Sunak said in his March Budget that the uplift will continue for a further six months until September 30, 2021.
The exact date the payment will end for each claimant will depend on the day they get their Universal Credit payment.
The government has said it will not extend the £20 a week uplift permanent, despite calls from charities and MPs to make the increase permanent.
Here’s how to get extra cash worth up to £1,100 when Universal Credit £20 boost ends.
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