UNIVERSAL Credit claimants will see their payments fall by £20 a week from October, Chancellor Rishi Sunak has confirmed.
The temporary boost, first implemented last year due to the coronavirus crisis, was extended by six months in yesterday’s Budget.
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The support is worth £1,040 a year and was initially only supposed to last a year, until March 31.
Instead, claimants will now continue to get the extra cash until the autumn.
However, campaigners had called for Mr Sunak to go further and said the boost should be made permanent.
But the Chancellor is said to be fixed on ending the uplift 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.
Asked today if he will extend it beyond another six months, Mr Sunak told BBC Breakfast: “No, we put this in place at the beginning of the crisis last year to help people in the national lockdown.
“Obviously the restrictions have gone on for longer than any of us would have hoped or liked.
“But six months’ extension to the Universal Credit uplift means it will be in place well beyond the end of this national lockdown.
“And remember, it’s just one of the things we’re doing to help people.”
Yesterday’s U-turn came as MPs, charities and campaigners warned removing the boost would plunge thousands of families further into debt.
The pandemic has pushed millions of more people onto the benefits system in the past year as businesses and employers have been forced to close.
As of January 2021, six million Brits were on Universal Credit, up from 2.8million in the some month a year earlier, according to government stats.
Everyone who claims Universal Credit gets the £20 a week uplift, regardless of what elements you are entitled to.
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The cash has been added automatically to the standard allowance element for all Universal Credit claimants and can be viewed in online journals.
We explain seven other ways to get help paying bills if you’re on Universal Credit.
Universal Credit’s tax on workers should be cut to help struggling Brits back into employment, a new think tank report has said.
Universal Credit £20 a week boost extended for six months in today’s Budget
