Universal Credit was introduced in 2013 to replace a variety of state benefits, from Job Seekers Allowance to Child Tax Credit. Claimants of these benefits complained that the change left them worse off, and the Government is seeking to fix this with a rise in some claimants’ pay-outs from this month on. Express.co.uk reveals who is entitled to the Universal Credit boost on October 8.
Universal Credit is made up of two parts: the standard allowance and extra amounts on top of that depending on your circumstances.
The standard allowance for all claimants depends on your age and relationship status.
If you are under 25 and single you get £342.72 per month, and if you’re 25 or over and single you get £409.89.
If you are in a couple and both under 25, you’ll get £488.59 for you both, but if one or both of you are 25 or over you get £594.04.
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The extra amounts you get are based on other factors, including disability and number of dependants.
For example, you’ll get more money if you have children to support.
You get an extra amount for each child if you have one or two, and if you have three or more you get an extra amount for at least two of the children.
Those who need help with the costs of living with a disability or health condition can also get an extra amount. Some carers are also entitled to this.
When Universal Credit was first brought in, those on Income Support, Jobseekers Allowance, Housing Benefit, and other benefits were forced to switch over to Universal Credit IF they were also claiming Severe Disability Premium (SDP).
The new rise is intended to pay the difference between the old system and Universal Credit for these people.
Justin Tomlinson, Minister of State at the DWP said: “Universal Credit on account of a change of circumstances.
“The UC (Managed Migration Pilot and Miscellaneous Amendments) Regulations 2019 provide for the conversion of these transitional payments into transitional elements.
“This means that payments will be made through the UC system rather than manually, and all transitional protection will be subject to the same rules.
“I will be signing a determination setting the conversion day to 8 October 2020.”
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If you don’t get the limited capability for work-related activity fee, you’ll get £285 a month which is roughly the same as the lower rate of SDP.
Those who don’t get the limited capability for work-related activity addition but were being paid the lower rate of SDP, you’ll get £285 a month.
The maximum rise is £405, and joint claimants who got the higher couple rate of SDP will get this.
The changes are active from Thursday, October 8, 2020.