Are you affected by the Universal Credit payment rise?
Universal Credit payments are rising today, giving more financial comfort to many families across the UK in the time of the coronavirus pandemic.
This Universal Credit payment rise is long awaited, following a five-year freeze to benefits.
The payments which were already set to be boosted have been topped up by a further £20 per week, to help ease the financial burden of the current COVID19 lockdown in England.
Benefit changes in act from today include increases in the Universal Credit standard allowance, a suspension of the Universal Credit minimum income floor, and increases to Working Tax Credits too.
How will changes affect me?
Universal Credit standard allowance and Working Tax Credits
The standard allowance (which everyone is entitled to if they’re accepted on Universal Credit) will rise by roughly £20 per week for the next year. This equates to an added £1,000. The Department for Work and Pensions has said the standard rate will be increased by £86.67 per month. That means those who claim Universal Credit will be up to £1,040 better off depending on circumstances.
How today’s changes will affect Universal Credit:
- Single and under 25 – rising from £251.77 to £342.72
- Single and over 25 – rising from £317.82 to £409.89
- If you’re a couple with joint claimants both under 25 – rising from £395.20 to £488.59
- If you’re a couple with joint claimants, one or both over 25 – rising from £498.88 to £594.04
Working tax credit is rising by the same amount.
Minimum Income Floor
By temporarily removing the Universal Credit Minimum Income Floor, it’ll help those who are self-employed who are losing income due to health or social restrictions of COVID19 (such as self isolation or lockdown).
Universal credit will be calculated by self-employed workers who have had their business running for more than 12 months, and predicts what they earn. This is the Minimum Income Floor for those who are self employed.
Will these changes help you? Let us know in the comments.