The Department for Work and Pensions (DWP) has urged those who claim the benefit to ask for additional financial support, to help with the cost of living crisis.
Claimants are facing a real-term cut on their income as payments are not keeping up with inflation rates, reports NorthWales Live. Child Poverty Action Group recently stated that because DWP benefits only rose by 3.1 per cent in April 2022, most of the people on Universal Credit will face cuts of at least £750.
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The Joseph Rowntree Foundation also said that the below-inflation benefits rise in April represented "a real-terms cut to the incomes of some of the poorest families in the country, at a time when the UK’s main out-of-work support is already at a 30-year low following a decade of cuts and less than six months on from the £20 per week cut to Universal Credit."
Approximately 40 per cent of Universal Credit claimants are in work, with the benefit topping up lower wages. Those who are unemployed are being urged to go into work, as part of the Government's Way to Work jobs drive.
The DWP have stated: "If you’re in financial difficulties, you can get help and advice from the Government, local councils and other organisations." They also shared a series of options for those on Universal Credit, allowing them to access further financial support.
Find out more below about these financial boosts.
Advance payments
New Universal Credit claimants usually 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.
However, this advance will need to be paid back in instalments from future DWP payments. You can also apply for this advance boost if:
you are already on Universal Credit and have told the DWP of a change in your circumstances
To apply for this advance payment, you can either:
- speak to a Jobcentre Plus work coach
- apply through your online account
- call the Universal Credit helpline on 0800 328 5644
Hardship payments
Hardship payments are granted if your benefits have been reduced or stopped as a result of a sanction. A sanction means that the individual has been penalised for breaking the contract of their benefit claim, for example, not attending a meeting with a work coach.
Turn2Us has said that the DWP works out the Hardship Payment based on 60 per cent of the amount you are losing in benefits, multiplied by the number of days the sanction is due to last. 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.
Essential needs include:
rent
heating
food
You also have to prove that you have tried to find alternative means of support, like a charitable cause. You have to reapply for a new Hardship Payment for each Universal Credit assessment period in which you are affected by a sanction.
Hardship payments also have to be paid back in instalments, the same as advance payments.
Alternative Payment Arrangements
If you are in financial distress, or are behind on your rent payments, either you or your landlord could apply to the DWP for an Alternative Payment Arrangement (APA). This would mean that your benefits could be adjusted to help you manage the household budget in an easier way.
You could either:
- 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
Budgeting Advance
Those who claim Universal Credit could be entitled to a Budgeting Advance of up to £812. This is in place to help with emergency household needs, like replacing appliances, or the costs associated with getting a job or staying in work - like uniform or equipment.
Effectively, this is a loan that would need to be repayed through your usual Universal Credit payments. The smallest amount available is £100, with other options like:
- up to £348 if you’re single
£464 if you’re part of a couple
£812 if you have children
In order to qualify, you will need to have:
earned less than £2,600 (£3,600 together for couples) in the past six months
must have paid off any previous Budgeting Loans you received
You can apply online, at the nearest jobcentre, or via the helpline previously mentioned.
Other state benefits
Universal Credit claimants may be able to get more benefits from the DWP. For example, if an individual wants to claim a benefit without savings or income being taken into account, they could apply for the new-style Jobseekers Allowance (JSA), or the new-style Employment and Support Allowance (ESA).
Employment and Support Allowance (ESA)
For the ESA, Universal Credit payment is reduced by the amount received in ESA, so you won't actually end up with more money. But the ESA is paid in more regular periods - every fortnight - so you can get your money quicker.
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.
Cheaper 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, Ofcom said.
This is all to do with social tariff broadband packages, which are discounted. BT, G.Network, Community Fibre, Hyperoptic, KCOM and Virgin Media O2 all offer the discounted rates.
Social tariffs are for customers who receive income-related benefits from the Government, like Universal Credit, ESA and JSA. Approximately 16 million people are eligible for this cheaper broadband rate, but as little as 15 per cent apply for them, according to research by Uswitch.com.
There are eight Department for Work and Pensions 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. Check out all the available budget broadband packages here.
Warm Homes Discount
Those on low income and who receive benefits can apply directly to their energy supplier for the Warm Homes Discount. This provides the user with £140 off their electricity bill.
You may be able to get a discount on your gas bill instead if your supplier provides you with both gas and electricity. Check with your energy company if you are eligible.
Affordable Warmth grants
Benefit users should also check with their energy supplier if they can be given more help and support by the company. For example, the Emergency Central Heating Offer (ECHO) is a scheme that gives assistance to repair or replace broken or condemned boilers.
The Affordable Warmth scheme provides money for the installation of central heating systems.
Reduced water bills
Universal Credit claimants may be entitled to having their water bills reduced. The WaterSure scheme enables people to have their bills cut so they will pay no more than the average bill for their company, even if they use more than the average amount of water.
In order to qualify, you would need to:
be responsible for three or more children under the age of 19 and in full-time education living in the property
have (or someone living in the property must have) a medical condition that requires significant additional use of water
In addition to that, the Consumer Council for Water says all water companies offer reduced tariffs to low-income customers. In some cases, bills can be cut by as much as 90 per cent. CCW has a guide to these tariffs.
Discretionary Housing Payments
Discretionary Housing Payments (DHPs) provide financial help on rent or living costs. People can apply for this if they:
currently claim either Housing Benefit or the housing element of Universal Credit
need extra cash to keep a roof over your head
A DHP can help with covering rent shortfalls, rent deposits, or advanced rent payments. You will need to apply via your local authority.
Funeral Expenses Payment
Universal Credit claimants can get a Funeral Expenses Payment if they are either the: close relative, partner 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 is payment is available to those on other benefits such as:
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
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.
Help for those expecting a child or who have children
The DWP have said that those on Universal Credit could be entitled to:
- free early education for two-year-olds
- free school meals
- Best Start Foods and a Best Start Grant (in Scotland) if you’re pregnant or have a child under 4 years old
- a Pregnancy and Baby payment in Scotland
Legal costs
If you are in receipt of Universal Credit, you might be able to get help with prison visiting costs, money towards the costs of using courts or tribunals, and legal aid.
Travel discounts
You might also be able to get a Jobcentre Plus Travel Card for discounts on:
- rail travel
- Stagecoach buses
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