The Department for Work and Pensions is urging Universal Credit payments to apply for extra support if they're struggling financially.
It comes as campaigners warn those on benefits face a real-term cut to their income, as payments are not rising in pace with inflation. Child Poverty Action Group said that because DWP benefits have risen by 3.1 per cent this April when inflation has hit 7 per cent, most of the two million families on Universal Credit face a cut of around £570 per year in social security support.
Many people who receive Universal Credit are already in work, with the benefit topping up low wages. Others who are out of work are to be encouraged into employment as part of the Government's Way to Work jobs push, Birmingham Live reports.
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The DWP said: "If you’re in financial difficulties, you can get help and advice from the Government, local councils and other organisations." It has detailed a series of options people receiving Universal Credit can explore to take the pressure off household budgets and boost their income and we have listed these below.
1. Advance payments
Those who are new to Universal Credit have to wait around five weeks for their first payment. If you don't have enough to live on during this time, you can ask for an advance payment straight away so you can pay your rent and buy food. But note that this advance has to be paid back in instalments from future Universal Credit payments.
You can also apply for an advance if you are already on Universal Credit and have told the DWP of a change in your circumstances which means you are entitled to more money but haven't yet received the increased amount. To apply for a Universal Credit advance you can speak to your Jobcentre Plus work coach, apply through your online account or call the Universal Credit helpline on 0800 328 5644.
2. Hardship payments
You can ask for a hardship payment if your benefit payments have been reduced or stopped as a result of a sanction. A sanction means you have been penalised for breaking the rules of your benefit claim such as by not attending an appointment with a work coach.
To get such a payment, you must be unable to meet immediate and most basic essential needs or those of a child you are responsible for. These include rent, heating and food. And you have to prove you have tried to get alternative sources of support, such as from a charity.
You have to reapply for a new Hardship Payment for each Universal Credit assessment period in which you are affected by a sanction. As with an advance, a Hardship Payment has to be repaid in instalments from future benefits. Find out more here
3. Alternative Payment Arrangements
If you are in financial difficulties or are behind on your rent, you or your landlord may be able to apply to the DWP for an Alternative Payment Arrangement (APA). This means the way your benefits are paid could be adjusted to help you manage the household budget more easily. You could:
- get your rent paid directly to your landlord so you don't have to worry about having enough left to pay for it
- be paid more frequently than once a month if it helps you manage your spending
- receive split payments if you are part of a couple
4. Budgeting Advance
Universal Credit claimants may be able to get a Budgeting Advance of up to £812 to help with things like emergency household needs (such as replacing a broken cooker) or the costs associated with getting a job or staying in work (such as clothing or equipment you're expected to have).
This is effectively a loan that you have to repay through your usual Universal Credit payments. The smallest amount you can borrow is £100. You can get up to £348 if you’re single, £464 if you’re part of a couple, or £812 if you have children.
In order to qualify, you also need to have earned less than £2,600 (£3,600 together for couples) in the past six months and must have paid off any previous Budgeting Loans you received. Apply via your Universal Credit account, at the nearest jobcentre or via the Universal Credit helpline on 0800 328 5644.
5. Other state benefits
You may be able to get more than just Universal Credit. For instance, if you want to claim a benefit without your savings, your partner's savings or their income being taken into account, you can apply for either new-style Jobseeker's Allowance (JSA) or new-style Employment and Support Allowance (ESA).
With new-style ESA, your Universal Credit payment is reduced by the amount you get in ESA so you won't actually end up with any more money. But ESA is paid more regularly (every two weeks) and gives different National Insurance credits. Those on Universal Credit get Class 3 NI credits, while those on ESA get Class 1 NI credits which count as a contribution to many more different types of benefits including Maternity Allowance, Bereavement Support Payment and Additional State Pension.
And if you have a health condition or disability, you could receive Personal Independence Payment (PIP) on top of your Universal Credit.
Use a benefits calculator such as this one at Turn2Us to find out what other state support you could get.
6. Cheap broadband
More than four million households on Universal Credit are missing out on getting £144 a year off their broadband bills. Only 1.2 per cent of people who could take up the discounted broadband have done, according to Ofcom.
It is all to do with social tariff broadband packages, which are specially discounted. BT, Community Fibre, G.Network, Hyperoptic, KCOM and Virgin Media O2 all offer the discounted rates.
Social tariffs are for broadband customers who receive income-related Government benefits, such as Universal Credit, Employment and Support Allowance and Jobseeker’s Allowance. Some 16 million people in all are estimated to be eligible for the tariffs, but as little as one in six (15 per cent) apply for them, according to research by Uswitch.com.
There are eight DWP payouts that qualify for low-cost tariffs on broadband. But two-thirds of financially vulnerable people aren't even aware that the special deals exist.
The average monthly spend on broadband among those eligible for social tariffs is £34.50 - so applying for BT Home Essentials at £15 a month could save eligible customers £19.50 a month, or £234 a year.
7. Heating costs
The Affordable Warmth Scheme provides cash for the installation of central heating systems and those on Universal Credit are among the benefit recipients who qualify. To qualify for a grant, the new central heating must include a boiler that uses radiators to heat your home.
It must be installed in domestic premises which do not currently have and have never had a central heating system before.
8. Reduced water bills
Those living in a household where someone claims benefits such as Universal Credit may be entitled to get their water bills reduced. The WaterSure scheme enables customers to have their bills capped so they will pay no more than the average household bill for their company, even if they use more than the average amount of water.
In order to qualify, people need to be responsible for three or more children under the age of 19 and in full-time education living in the property, or have (or someone living in the property must have) a medical condition that requires significant additional use of water.
9. Housing costs
Discretionary Housing Payments (DHPs) provide financial support to help with rent or housing costs. You can apply for a DHP if you currently claim either Housing Benefit or the housing element of Universal Credit and need extra cash to keep a roof over your head.
A discretionary housing payment can help with covering a rent shortfall, rent deposits, or the rent you have to pay in advance if you move to a new address. You have to apply through your local authority.
10. Free prescriptions and healthcare
Those on Universal Credit can get free prescriptions if they either had no earnings or had net earnings of £435 or less in the last four-week assessment period. They may also qualify if their Universal Credit payment includes an additional amount for a child.
Free prescriptions are also usually available if you (or your partner) are on UC with limited capability for work (LCW) or limited capability for work and work-related activity (LCWRA) and either had no earnings or net earnings of £935 or less in your last assessment period.
Not all forms for an exemption from medicine charges have a tick box for Universal Credit. If that's the case, tick the box for income-based Jobseeker's Allowance instead. In some cases, you might have to pay the charges and then get a refund later, for instance if your Universal Credit claim is still being assessed.
You may also get help towards other medical costs such as dental treatment, eye tests, new glasses or contact lenses, travel to hospital appointments, and new wigs and fabric supports.
11. Funeral expenses
Those on Universal Credit can get a Funeral Expenses Payment, providing they are the partner, close relative or close friend of a deceased person; the parent of a baby stillborn after 24 weeks of pregnancy; or the parent or person responsible for a deceased child who was under 16 (or under 20 and in approved education or training).
This payment is also available to those on other benefits including Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Pension Credit, Housing Benefit, the disability or severe disability element of Working Tax Credit or Child Tax Credit.
There is no fixed amount given. The payment can cover such things as burial or cremation fees, some of the costs of moving the body or transporting the coffin and bearers to the service, one return journey for you to attend the funeral, and up to £1000 for related expenses such as the funeral director's fees, the coffin, cars or flowers.
12. Child costs
People on Universal Credit get extra if they have children. But there are other forms of support parents should know about. For instance, all 3 to 4-year-olds in England can get 570 hours of free childcare per year. It’s usually taken as 15 hours a week for 38 weeks of the year, but you can choose to take fewer hours over more weeks. Some 3 to 4-year-olds are eligible for 30 hours of free childcare a week. Find out more here.
Also, be sure to check if your child may be able to get free school meals from the local authority. Other forms of help include:
- Healthy Start vouchers if you’re pregnant or have a child under 4 years old
- a Sure Start Maternity Grant in England and Wales
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