Universal Credit misconceptions defined as fee guidelines change
Universal Credit is continuing to change that means some claimants is probably not clear about the way it works.
People on older legacy advantages are being steadily moved onto the profit whereas guidelines concerning the duties claimants need to do have additionally lately modified, which can result in some confusion for claimants.
Here are 5 misconceptions about how Universal Credit that folks might discover useful to have clarified.
Universal Credit shouldn’t be primarily based on the variety of hours an individual works
The quantity an individual receives in Universal Credit funds shouldn’t be primarily based on what number of hours they work however fairly how a lot they earn.
An individual will obtain a regular allowance and extra funds relying on their scenario.
These are the present month-to-month normal allowance funds:
- Single below 25: £292.11
- Single 25 or over: £368.74
- Joint claimants each below 25: £458.51
- Joint claimants, one or each 25 or over: £578.82.
If a claimant works, there’s a taper fee which steadily reduces their most fee as their earnings enhance.
The taper fee is 55 p.c that means 55p is deducted from a person’s Universal Credit payment for every £1 they earn.
Some claimants get a piece allowance, a set quantity they will earn earlier than their Universal Credit fee reduces.
The allowance is normally solely accessible to claimants who’ve duty for a kid or who’ve a incapacity or well being situation that impacts their capacity to work.
These are the present work allowance charges:
- £379 a month – for claimants who get assist with housing prices
- £631 a month – for claimants who do not get assist with housing prices.
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Not all Universal Credit claimants need to try to discover work
Each individual will get a Claimant Commitment which outlines what they need to do to get Universal Credit.
This will rely on an individual’s circumstances together with their well being and whether or not they’re at present working.
In some conditions, an individual might be put into the no work-related necessities group and never need to search for work.
An individual could also be put into this group if they’ve restricted functionality to work or in the event that they care for one more individual, or take care of a younger youngster.
A claimant can discover out if they’re anticipated to search for work by checking their Claimant Commitment.
Universal Credit isn’t changing all different advantages
Universal Credit is simply changing these legacy advantages:
- Child Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit.
Households on these legacy advantages might be moved onto Universal Credit by the top of 2024.
There is one exception to this – folks on income-related ESA who don’t get tax credit is not going to be moved over till 2028.
When an individual is to be moved over to the brand new profit, they’ll get a ‘migration notice’ letter within the publish.
An individual might be mechanically moved onto Universal Credit in the event that they report a change of their circumstances, reminiscent of beginning a brand new job or altering tackle.
An individual transferring to Universal Credit might not get much less advantages because of this
People transferring from legacy advantages to Universal Credit may even see their funds change however some funds might enhance fairly than go down.
DWP figures launched final 12 months confirmed of the two.6 million claimants it was transferring over to Universal Credit, 1.4 million folks can be higher off whereas 900,000 can be worse off.
An individual can test how a lot advantages they’re entitled to utilizing a advantages calculator, such because the one on the Turn2us web site.
Extra assist is obtainable to Universal Credit claimants who’re struggling to get by
It can take as much as 5 weeks for a Universal Credit declare to be processed and within the meantime, an individual’s current advantages will cease.
An particular person who’s struggling throughout this time can request an advance fee of their first Universal Credit fee, as much as the total quantity they might normally obtain for his or her award.
However, the claimant should pay again this quantity out of their future Universal Credit funds.
People on Universal Credit are additionally receiving a one-off £900 price of dwelling fee this monetary 12 months, which is being paid in three instalments.
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