Benefit boost for thousands moving to Universal Credit

THOUSANDS of benefit claimants moving to Universal Credit are set to receive up to two weeks of additional cash to provide them with extra support.

From Wednesday (July 22), if someone’s existing claim of income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA) or Income Support ends due to them applying for Universal Credit they will receive a payment worth up to two weeks of their legacy award.

This one-time payment, known as a run-on, is to help people during their first assessment period, and does not have to be paid back.

It will be paid automatically to eligible claimants when they claim Universal Credit for the first time, so they don’t have to contact the Department for Work and Pensions to receive it. It will not affect the amount of Universal Credit they receive.

Minister for Welfare Delivery Will Quince said:

“This one-off payment will provide additional support as claimants move from legacy benefits to Universal Credit. It doesn’t have to be paid back and won’t affect their UC award, so is welcome extra cash in pockets.”

Run-on payments will include other premiums that claimants have been receiving prior to moving over to Universal Credit, including Enhanced Disability Premium, carer premium or ESA work-related activity component.

Universal Credit, which is available in every jobcentre across the UK, simplifies the benefit system and replaces six previous legacy benefits with a single monthly payment. With Universal Credit, people are moving into work faster and staying in work for longer than they were on previous benefits.

As well as financial help, Universal Credit provides claimants with tailored employment support and referrals to specialist support services including those for improving skills and personal budgeting.

Since mid-March we’ve managed to process more than 2.5 million claims for Universal Credit and pay over one million new claims advances, getting hundreds of millions of pounds to those in urgent need within days.

The Government lists independent benefit calculators to help people check to see how much support through Universal Credit they are entitled before moving from legacy benefits. This can be found at www/gov.uk/benefits-calculators.

For further information on Universal Credit go to www.understandinguniversalcredit.gov.uk

Additional support:

• Universal Credit is a modern, digital system that has stood-up to the challenge of Coronavirus. Had it not been introduced, the benefits system would have buckled under the pressure.

• With Universal Credit no one has to wait five weeks for money as upfront advances can be requested.
• To support those on low incomes through the Covid-19 outbreak the government has implemented a package of temporary welfare measures. Taken together, these measures and those announced at Budget provide over £9.3bn of additional support through the welfare system for people affected by COVID-19:

o A £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element.

o An increase in the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants so that it covers the lowest third of local rents.

o A relaxation of earnings rules for self-employed Universal Credit claimants affected by the economic impacts of Covid-19.

• There is also help available for childcare costs for children of any age. Working parents in receipt of Universal Credit can claim up to 85% of their childcare costs, compared to 70% under the previous system. For families with two children this could be worth up to £13,000 a year.