The Department for Work and Pensions (DWP) has confirmed that Universal Credit will change from October 2.
The changes were announced in the budget, and will see the repayment cap lowered from the 40 per cent maximum, down to 30pc. This means that some claimants will be able to keep more of their money, as the DWP will be able to deduct less from benefit payments to pay back rent arrears, advanced payments or sanctions.
Those who are currently being charged 40pc will receive more money from October.
Here's everything you need to know about Universal Credit.
What is Universal Credit?
Universal Credit is a payment that helps support you with living costs. It is paid into your account once a month.
Who can claim Universal Credit?
Those who are on a low income or are out of work are able to claim Universal Credit. You'll usually have to be over 18 to apply for Universal Credit, but in some cases those aged 16 and 17 will be eligible (depending on circumstances).
The same applies to those in full-time education and training. People doing either of these things won't usually be able to claim, but in some circumstances exceptions can be made.
You'll be able to claim Universal Credit if:
- You're on a low income or out of work
- You're 18 and above (you can be 16 or 17 in some exceptions)
- You're under state pension age - or your partner is
- You and your partner have less than £16,000 in savings between you
-
You live in the UK
You should be aware that your partner's income and savings will be taken into account, even if they are not applying for the bnefit.
What is Universal Credit replacing?
Universal Credit has replaced the following:
- Child Tax Benefit
- Housing Benefit
- Income Support
- Income-based Jobseeker's Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Working Tax Credit
If you already claim any of the above you won't need to do anything until the DWP contacts you about moving to Universal Credit.
When will Universal Credit get paid into my account?
It usually takes 5 weeks to get your first payment after your application is processed successfully. After that, you'll be paid on the same day each month, so the payment day varies for each individual.
What time will Universal Credit get paid into my account?
What happens if my Universal Credit payment day lands on a bank holiday or weekend?
If this happens your payment will be made on the day before its due date.
How much Universal Credit will I get?
The amount of Universal Credit you're entitled to is completely dependent on your circumstances. If you have children, a disability, or need help paying your rent, you may be able to get extra amounts on top of the standard allowance.
To work out what you'll get, use an independent benefits calculator.
This will tell you what benefits you'll get, how to claim and whether or not your benefits will be affected if you start work. The Calculators are free to use and are anonymous.
The official government website suggests using one of the following:
contact Citizen's Advice here.
