Earlier this week, the Department for Work and Pensions ( DWP) confirmed that tens of thousands of households on a low income will now get a cash boost after a new Universal Credit rule was implemented aimed at putting more money in people’s pockets.
Work allowances, the amount eligible claimants can earn before their Universal Credit is reduced, have increased by £500 per year, which means people will keep more of what they earn, representing an effective tax cut worth £2.2 billion for the UK’s lowest earners.
As a result of the rule change, an estimated 500,000 households may now be eligible for Universal Credit when they didn’t before and it’s something money-saving expert, Martin Lewi s, is urging every household earning under £30,000 to check.
Explaining the rule change on The Martin Lewis Money Show Live this week, the financial journalist told viewers: “In Universal Credit there’s a thing called the ‘work allowance’, it’s how much you can earn before they [DWP] start to reduce your Universal Credit and that has just gone up so some people can earn more and still get Universal Credit.”
He also encouraged viewers to check if they might now be eligible for the benefit.
He said: “My very rough rule of thumb is I would definitely check this if your family income is under £30,000 - I’m not saying you’ll get it, I’m saying it’s worth checking.”
He also advised people with children and high rent earning under £50,000 to spend five minutes and check their eligibility for Universal Credit using a free online benefits calculator to make sure they aren’t missing out on extra financial support.
Make sure you're not missing out, these online benefits calculators only take a few minutes to complete and will show you what you might qualify for and how much you could get.
Online benefits calculators
You can use an independent benefits calculator to find out:
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What benefits you could get
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How to claim
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How your benefits will be affected if you start work
These calculators are free to use, anonymous, and could indicate benefits you're missing out on.
Where to find help
Advice Direct Scotland
This new online tool is the first to fully integrate devolved benefits, including the new Scottish Child Payment.
It provides a free and impartial assessment of entitlement to a range of benefits such as Universal Credit, crisis grants and support payments.
Turn2us
Information on income-related benefits, Tax Credits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work or change your working hours
Policy in Practice
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit, how these are calculated and how your benefits will be affected if you start work or change your working hours
entitledto
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work
What you will need
You will need accurate information about your:
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Savings
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Income, including your partner’s
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Existing benefits and pensions (including anyone living with you)
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Outgoings (such as rent, mortgage, childcare payments)
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Council Tax bill
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