More than a million people who work could be missing out on Universal Credit payments.
According to the New Economics Foundation, a rule change announced in the Autumn Budget and implemented by the Department for Work and Pensions (DWP) at the end of November means some 1.3 million people are entitled to monthly payments of up to £600. However, many are unaware of what they could receive.
The foundation's modelling shows that by 2026/27, the number of families missing out on payments they are entitled to will rise to 2.3 million people. The payments total an average of £7,400 per family, per year - or around £600 each month.
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James Andrews, of money.co.uk, said: "In November, Rishi Sunak slashed the Universal Credit taper rate, the mechanism that sees your benefits withdrawn as your earnings rise. As a result, thousands of people who previously earned too much to be able to claim benefits now qualify for Universal Credit.
"Taper relief will change so that rather than lose 63p of benefits for every extra pound earned, you now only lose 55p. It means you can earn hundreds more before your benefits are reduced to £0. The work allowance - which is how much you can earn before the taper rate applies - has also gone up by £500 a year.
"Under the new rules, a single parent with two children and rental bills of £750, could earn up to £52,000 a year and still qualify, compared to £44,500 previously. Combined, it means people can now make more money each month without losing any of their benefits payments, and will lose less of any money they earn above the work allowance, seeing them up to £1,000 a year better off."
Money Saving Expert, which was founded by finance guru Martin Lewis, offers a free benefits calculator tool. This is an impartial system that can be used to see if you are entitled to any extra money from the government.
From April 6, the amount Universal Credit claimants will receive will rise. As the new financial year begins, Universal Credit and a number of other benefit payments will be increased by 3.1%. The new Universal Credit payments can be found below (monthly rates shown).
Standard allowance
Single
Single under 25: £265.31 (from £257.33)
Single 25 or over: £334.91 (from £324.84)
Couple
Joint claimants both under 25: £416.45 (from £403.93)
Joint claimants, one or both 25 or over: £525.72 (from £509.91)
Child elements
First child (born prior to April 6, 2017): £290 (from £282.60)
First child (born on or after April 6, 2017) or second child and subsequent child (where an exception or transitional provision applies): £244.58 (from £237.08)
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