Next week, top-up payments for Universal Credit (UC) claimants which have been in place throughout the pandemic will come to an end.
For nearly six million people and their families, it will mean a sudden drop in income of about £1,040 a year, equivalent to £20 a week.
The decision to top up UC claimants' payments by Chancellor Rishi Sunak was praised when it was introduced last year, and its removal could thrust millions of people into financial worry or even debt.
Read more: 'Covid Black Thursday': Uncertainty over jobs as £70bn furlough scheme ends
This week the UK Government reasserted its intention to remove the top-up, despite last-minute pleas from figures such as footballer Marcus Rashford to keep what he said had been a "lifeline" for millions of people.
Here's what you need to know about the end to the UC top-up payment, including when you can expect your last payment and what other support is available when it ends.
When will the top-up payments end?
The boost to Universal Credit payments will officially end on October 6, but the exact date people will notice the cut will depend on the day they get their benefit payment.
UC is paid in arrears and your benefits are calculated each month based on an assessment period the previous month. This assessment period depends on when you first applied for UC.
If your assessment period ends on or after October 6, you will be paid the new lower amount of UC. Those who are due to be paid Universal Credit into bank accounts on October 12 - following an assessment period from September 6 to October 5 - will be the last ones to still have the top-up payment included in their benefits.
For many, September will be the last month they see their UC paid at existing levels.
What part of UC is being cut?
The part of your benefits being cut is in the standard allowance. This is the basic rate you are entitled to before any additional elements are added, and before any income, savings or other deductions are taken into account.
The additional elements that will remain untouched include:
- Child element
- Childcare costs element
- Limited capability for work element (abolished for most new claimants from April 3, 2017)
- Limited capability for work-related activity element (LCWRA element)
- Carer element
- Housing costs element
- Transitional amount for people who had Severe Disability Premium on their legacy benefits
The benefit cap will also remain unchanged in October.
What will I get now?
Here is how the standard allowance per month will change from October 6:
Single
Single under 25: £257.33 (from £344)
Single 25 or over: £324.84 (from £411.51)
Couple
Joint claimants both under 25: £403.93 (from £490.60)
Joint claimants, one or both 25 or over: £509.91 (from £596.58)
What help is available if I am struggling?
With millions set to have their payments cut, charity Mental Health UK has warned that removing the £20-a-week uplift will be a "catastrophic cut" that could cause people’s mental health problems to spiral.
If you are struggling financially, there are other avenues you can explore.
According to the UK Government website, there are a number of independent benefits calculator tools you can use to find out if you are entitled to any additional benefits.
Citizens Advice offers free debt advice, allowing you to speak to a debt advisor if you're worried about how to meet your payments. It might also be worth speaking to your bills provider if you are worried about meeting your bills.
Talk to your bill providers as soon as possible if you're worried you can't meet your payments. Citizens Advice can also offer free debt advice.
You might also be able to use a food bank if you are eligible. You can also check this through Citizens Advice, who can refer you to your nearest food bank if you meet the eligibility criteria.
If you have children, you will likely be eligible for free school meals if you claim UC.
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