Universal Credit payments will be cut next month after the government confirmed it was axing the £20 uplift.
The weekly increase was introduced temporarily to help claimants weather the storm of the coronavirus pandemic - but the government has confirmed that the uplift will now be phased out.
The move means that millions of claimants will be losing out on £1,040 worth of income annually.
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Work and pensions secretary Therese Coffey defended the plans, insisting that the increase was only ever a temporary measure.
She suggested claimants would be able to work extra hours to fill the gap - but her claims were met with criticism when Labour pointed out that Universal Credit works by reducing payments as claimants work more hours.
Payments are reduced by 63p for every £1 earned over a certain allowance.
Ms Coffey said the government would assist people losing out due to the cut by supporting them to get work and progress to better-paid jobs, adding that are now "record numbers" of vacancies available.
But debt charities have warned that the cut could plunge many families below the poverty line.
When will payments change?
The government plans to start phasing out the Universal Credit increase from the end of September.
The official date that monthly payments will be decreased is October 6, according to the government.
But the actual date claimants are affected will depend on people's individual payment dates.
For most, September's payment will be the last month paid at existing levels.
If your assessment period ends on or after October 6, you will be paid the new lower amount of Universal Credit.
How much will the new payments be?
The cut to Universal Credit will be applied to the standard monthly allowance.
So that 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.
For single people under 25, the basic allowance will reduce from £344 to £257.33.
For single people 25 or over, the basic allowance will reduce from £411.51 to £324.84.
For joint claimants both under 25, the basic allowance will reduce from 490.60 to £403.93.
For joint claimants where one or both is 25 or over, the basic allowance will reduce from £596.58 to £509.91.
You may get more money on top of your standard allowance if you’re eligible.
If you have one or two children, you’ll get an extra amount for each child.
If you have three or more children, you’ll get an extra amount for at least two children.
