Parents whose children are leaving post-16 education will see their benefits cut in just weeks. Universal Credit claimants whose children are leaving full time education will see their payments reduced.
According to Yorkshire Live those with children who are not in post-16 education will see their monthly Universal Credit payments end in September. Families with children aged 16-19 receive additional more money if their child attends or is enrolled in full-time, non-advanced education or on approved training.
It is one of two payments which could disappear from families accounts if they do not notify the authorities. Once a child leaves full time education they are no longer counted in their family claim and the separate Child Benefit payments also cease.
Anna Stevenson, a benefits expert from charity Turn2US, told The Sun how people often don't realise their Universal Credit payments will go down when their child leaves education. She advised people to budget and plan for it.
She said: "Use a benefit calculator to figure out what your benefits will be once that child is not on your claim anymore."
It comes as the Government warned families they have just one week to confirm whether their child is remaining in full time education or approved training to continue getting the separate Child Benefit allowance. Those who fail to notify the HMRC if their youngster is remaining at school or college or other training by August 31 risk seeing this benefit end.
It has written to 1.3 million parents and carers of children, who are in the last year of school or education, to remind them to update their Child Benefit records. More than 600,000 families have already notified HMRC, but many have yet to do so. This means they could face having to manage on less money despite soaring costs.
Child Benefit is paid to eligible parents or carers who are responsible for a child under 16, or under 20 if they are in full-time non-advanced education or approved training. This includes A-levels/ Scottish Highers, NVQs up to Level 3, or certain traineeships – check GOV.UK for a list of approved courses and training schemes.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: "Child Benefit provides vital financial support for families and we want to make sure no-one misses out because they haven’t updated their details on time.
"The quickest way to notify HMRC is via your Personal Tax Account online, or search ‘child benefit when your child turns 16’ on GOV.UK for more information or further options for contacting us."
The two warnings come as millions across the UK are "migrated" from old "legacy benefits" onto Universal Credit. Five areas have been impacted so far, with the government planning to finish the process by 2024.
What is Universal Credit and am I eligible?
Universal Credit is a welfare scheme which is supposed to combine a number of old "legacy benefits" into a single monthly payment.
The old legacy benefits it replaced are:
Child Tax Credit
Housing Benefit
Income Support
Income-based Jobseeker’s Allowance (JSA)
Income-related Employment and Support Allowance (ESA)
Working Tax Credit
Whether you are eligible will depend on your specific circumstances.
But you may be eligible if you meet all of the following criteria:
you’re on a low income or out of work
you’re 18 or over (there are some exceptions if you’re 16 to 17)
you’re under State Pension age (or your partner is)
you and your partner have £16,000 or less in savings between you
you live in the UK
Your partner’s income and savings will be taken into account, even if they are not eligible for Universal Credit.
There are other factors that might make you eligible for a claim as well, for instance if you care for a disabled person, you're in further education or if you've recently had a child.
You can read the full eligibility criteria on the government's website.
How do you apply for Universal Credit?
Applying for Universal Credit should be relatively easy.
You have to go online, create an account, then make a claim for the benefit within 28 days.
If you live with your partner, you'll both have to create accounts and you'll join them together when you claim.
If you're struggling to claim online you can call the Universal Credit helpline which is 0800 328 5644.
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