Families claiming Universal Credit are facing a raft of changes announced in last week's autumn statement, as the Government announced measures designed to balance the UK's books.
Just about everyone will be affected by the measures announced by Chancellor Jeremy Hunt, but the 5.8 million households who receive Universal Credit are possibly one of the most-affected groups, and there are some good and some bad things just around the corner.
Here's a rundown on how the announcements might affect you.
Read more: DWP shares plans for big change to the way people apply for PIP
1. Universal Credit will rise in line with 10.1% inflation
After weeks of speculation, the Government finally confirmed that Universal Credit, will rise in line with inflation (10.1%) from April 2023. Claimants have been increasingly worried that their benefits could see a real-terms cut, with Number 10 refusing to commit to a rise in line with inflation after Boris Johnson previously promised that he would do so when was Prime Minister earlier this year. Campaigners say the rise is long overdue, given that the benefit only rose 3.1% in April.
The 10.1% rise will mean up to £52 extra in the pockets of Universal Credit claimants each month, depending on their age and living arrangements. Joint claimants - two people who live together where at least one is aged 25 or over - currently receive £525.72 per month. This will rise to to £578.29 April.
2. The benefits cap is rising too by 10.1%
The benefits cap will also rise with inflation (10.1%) from April 2023, from £384.62 a week to £423.45 a week for couples and single parents and £257.69 a week to £283.72 if you’re a single adult.
The cap, which was introduced in 2013, is a limit to the total amount in some benefits that working-age people can receive, even if their full entitlement would otherwise be higher.
3. More cost of living payments are on the way
If you claim Universal Credit, you'll be one of the groups who will likely receive £900 extra cost of living payments to help with energy bills. Details have not yet been confirmed, such as when the money will start to be paid out, and the qualifying date for when you need to be claiming benefits. There is also £300 on the way for pensioner households and £150 for those on disability benefits.
Over seven million payments of £324 have been made this month made to low-income families through the Government’s current cost of living support, including those claiming Universal Credit.
4. Managed migration to Universal Credit pushed back
If you claim income-related Employment and Support Allowance, the so-called "managed migration" to Universal Credit is being pushed back to 2028 from the planned date of 2024. The switchover of legacy benefits to Universal Credit started in 2019 but was paused during the Covid pandemic, then started up this summer, with Northumberland being one of the first areas to be switched.
However, claimants if other legacy benefits will still be moved over by the end of 2024. This includes:
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance
- Income Support
- Housing Benefit
5. More people will have to meet a work coach
More than 600,000 people on Universal Credit will soon be forced to meet with a work coach. The change affects people who claim Universal Credit but work 15 to 35 hours a week at minimum wage. The phased rollout starts from September 2023, and the aim is to encourage people into better paid work, with sanctions likely if they fail to cooperate.
An extra £280 million is also being invested to root out benefit fraud and error over the next two years.
Read more:
- Warm Home Discount: How to check if you will get a payment this year
- Angry Morrisons shoppers hit out at Christmas Collector spend targets
- "There is a marked decline": Annual County Durham toy appeal suffers as cost of living crisis bites
- Big brands v own label: Family favourites including baked beans and ketchup put to the test
- Petrol could go up 12p a litre in spring fuel hike Jeremy Hunt didn't mention
