New research from the Office for National Statistics (ONS) has revealed that the unemployment rate for in Scotland for people over 16 between November 2021 and January 2022 was 3.8%, falling 0.3% from the last quarter.
For those between the ages of 16 and 64, the employment rate was 74.5%, which marks a fall of 0.1% from the previous quarter.
As reported by the Daily Record, there were 2.55 million people in Scotland between the ages of 16 and 64 working between November and January.
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Over 1.3 million people who are in work could be missing out on Universal Credit that could total up to £7,300 per year, according to the New Economics Foundation.
The number of people in the UK who are now eligible to receive the benefit has soared due to a rule change that was unveiled in the Autumn Budget and introduced by the Department for Work and Pensions (DWP) last November.
Senior Personal Finance Editor at money.co.uk James Andrews said: “In November, Rishi Sunak slashed the Universal Credit taper rate, the mechanism that sees your benefits reduced or withdrawn as your earnings rise. As a result, thousands of people who previously earned too much to be able to claim benefits now qualify for the benefit.”
He added: “To be exact, the taper relief was changed so that rather than lose 63 pence of benefits for every extra pound earned, you now only lose 55 pence. It means you can earn hundreds more before your benefits are reduced to £0.
“On top of this, the work allowance - which is how much you can earn before the taper rate applies - has gone up by £500 a year. Under the new rules, a single parent with two children and rental bills of £750, could earn up to £52,000 a year and still qualify, compared to £44,500 previously.”
As a result of the adjustment to the rules, people can now make more money per month without losing any of their benefit payments, and will lose less of any money they earn above the work allowance.
Andrews continued: “With millions of people seeing their essential bills rise, the Universal Credit rule changes should not be ignored as a way of getting hold of some extra cash to help make ends meet.”
There are a range of online benefit tools available that can help you work out if you are eligible for additional financial assistance.
These calculators are unbiased and confidential, and will likely let you know whether it is work making a claim in just a few minutes.
If you are eligible for money, monthly payments will range from £344 and £596.58, dependent on your individual circumstances such as whether you have children or whether you have a disability or health condition.
A single payment is paid into your bank account every two weeks.
For more information about what Universal Credit is and how it works, use money.co.uk’s comprehensive guide here.
What you need to know about Universal Credit
People launching a new claim may not be eligible to receive the maximum amount, but they might be entitled to certain elements such as a Council Tax Reduction — as well as assistance paying rent.
Those on a low income are be able to top up their salary with the benefit.
Previously, those who were on a low income could apply for Working Tax Credits, but this is being gradually eliminated with more claimants moving to Universal Credit.
How to claim Universal Credit
The UK Government states that a person may be able to get Universal Credit if:
You are on a low-income or out of work
You are 18 or over (there are some exceptions if you’re 16 to 17)
You are 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
If you live with your partner, their income and savings will be taken into account, even if they are not eligible for Universal Credit.
It is worth noting that you won't be able to get any of the means-tested benefits if your capital and savings amount to more than the upper limit of £16,000.
These include:
Universal Credit
Income-related Employment and Support Allowance
Income-based Jobseeker's Allowance
Income Support
Housing Benefit
However, your savings and capital (or your partner’s savings, capital and income) are not taken into account when claiming ‘New Style’ Jobseeker's Allowance (JSA) and this particular benefit can be obtained at the same time as Universal Credit - or on its own.
‘New Style’ JSA is a contribution-based benefit. This means you may be able to get it if you’ve paid enough National Insurance (NI) contributions in the two full tax years before the year you’re claiming in.
It is paid fortnightly and if you qualify, you can get 'New Style' JSA for up to 182 days.
If you qualify for both ‘New Style’ JSA and Universal Credit, any ‘New Style’ JSA you receive will be taken into account as income for Universal Credit.
To make a claim for Universal Credit, visit the gov.uk website here.
Universal Credit until April 2022 (monthly rates shown)
Standard allowance
Single
Single under 25: £257.33
Single 25 or over: £324.84
Couple
Joint claimants both under 25: £403.93
Joint claimants, one or both 25 or over: £509.91
What happens if you have a job?
There is not a cap on the amount of hours you can work whilst claiming Universal Credit, but only those who are on a low income are eligible for the benefit.
The money that a claimant receives depends on how much they earn, becoming lower the more a person earns.
For every £1 that a claimant earns at their job, the amount they receive through the benefit is reduced by 55p — with the goal being their payments gradually being reduced until they are fully financially independent.
This does not include people who are eligible to receive Work Allowance, and who are responsible for a child and those whose working ability is affected by a disability or health condition.
These people will be permitted to earn up to a set limit without their benefits being impacted.
The set amount is £335 a month for those who already have additional assistance to help with housing costs, and £557 a month for people who don't.
After these limits, the the £1 to 55p rule will apply.
Housing costs
You could get money to help pay your housing costs. How much you get depends on your age and circumstances, but the payment can cover rent and some service charges.
If you’re a homeowner, you might be able to get a loan to help with interest payments on your mortgage or other loans you’ve taken out for your home.
What documents you need to apply for Universal Credit
You will need:
Your bank, building society or credit union account details
An email address
Information about your housing, for example how much rent you pay
Details of your income, for example payslips
Details of savings and any investments, like shares or a property that you rent out
Details of how much you pay for childcare if you’re applying for help with childcare costs
If you don't provide the right information when you apply it might affect when you get paid or how much you get.
Verifying your identity online
You will need some proof of identity for this, for example your:
Driving licence
Passport
Debit or credit card
To make a claim for Universal Credit, visit the gov.uk website here
Benefit Calculators
You can also use an independent benefits calculator to find out:
What benefits you could get
How to claim
How your benefits will be affected if you start work
These calculators are free to use, anonymous, and could indicate benefits you're missing out on.
Where to find help
Advice Direct Scotland
This new online tool is the first to fully integrate devolved benefits, including the new Scottish Child Payment.
It provides a free and impartial assessment of entitlement to a range of benefits such as Universal Credit, crisis grants and support payments.
Turn2us
Information on income-related benefits, Tax Credits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work or change your working hours
Policy in Practice
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit, how these are calculated and how your benefits will be affected if you start work or change your working hours
entitledto
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work
What you will need
You will need accurate information about your:
Savings
Income, including your partner’s
Existing benefits and pensions (including anyone living with you)
Outgoings (such as rent, mortgage, childcare payments)
Council Tax bill
