Universal Credit payment boost for people in four groups

Housing: PM announces changes to Universal Credit rules

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Guidance has been issued by the Department for Work and Pensions on how claimants who are switching to Universal Credit will be impacted. The latest stage of the rollout has started this week in Northumberland, with claimants to receive a Migration Notice letter.

The letter will include details of when their benefits are transitioning, for people who are currently on:

  • Child Tax Credit
  • Housing Benefit
  • Income Support
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Working Tax Credit.

People can also choose to voluntarily switch or they will be naturally migrated if the situation changes, such as changes to their employment or moving to a new address.

Some will see an increase in their benefits payments as they move onto Universal Credit while others will receive the same amount.

Anyone who would get a reduced payment will be kept at the same level as part of the ‘transitional protection’ policy to avoid a sudden drop in income for struggling Britons.

This is only available to people who have received the letter from the DWP and who claim by the deadline as detailed in the letter.

The DWP has said around 1.4 million (55 per cent) of the 2.6 million remaining legacy benefits claimants would get more money on Universal Credit.

A further 300,000 would see no change in their payments and approximately 900,000 households (35 per cent) would get less.

The categories of claimants who may receive a higher payment under Universal Credit include:

  • Employment and Support Allowance (ESA) Support Group not in receipt of the Severe Disability Premium
  • In-work households receiving Housing Benefit only or Working Tax Credit and Housing Benefit – this is because the earnings taper rules are more generous with Universal Credit
  • People who do not work enough hours to receive Working Tax Credit
  • Households who have not been claiming all the legacy benefits they are entitled to.

Types of claimants who may get a lower payment with Universal Credit, and who may be eligible for transitional protection, include:

  • Households who receive Employment and Support Allowance (ESA) with the Severe Disability Premium and Enhanced Disability Premium
  • Households with the lower disabled child addition on legacy benefits
  • Self-employed households who are subject to the Minimum Income Floor, after the 12-month grace period has ended.
  • In-work households that work a specific number of hours (for example, lone parent working 16 hours claiming Working Tax Credits)
  • Households receiving tax credits with savings of more than £6,000, and up to £16,000.

The DWP has said that 1.4 million people get an increase of some £220 to their payments.

Once a person applies to move to Universal Credit, they cannot revert to their previous benefits.

More than one million Britons are missing out on Universal Credit despite being eligible, according to figures from the DWP.

In April, benefit payments were hiked 3.1 percent in line with last year’s Consumer Price Index (CPI) rate of inflation.

Source: Read Full Article