Universal Credit Claimants Expected to Bag an Additional £67 Every Month
There is a possibility that the Britons claiming Universal Credit could be eligible for an extra £67 per month if they reach a specific milestone. The Department for Work and Pensions (DWP) awards this benefit to the unemployed or low income. However, the amount received depends on an individual’s circumstances.
It’s estimated that twice as many people claimed Universal Credit before the pandemic as more and more people have lost jobs or had their hours cut.
About six million people are currently eligible to claim help with everyday living costs. However, the amount someone receives will depend on whether they are single, part of a couple, or a family with children. For example, single and under 25 receive the least amount of help—a monthly allowance of £344—but this increases by £65 when they reach 25-years-old.
The Increase Isn’t Dependent on Any Circumstance Change.
This automatic increase in Universal Credit for persons aged 25 and above occurs regardless of whether their circumstances change.
It implies that they’ll start receiving £411.51 after attaining 25 years even if their cost of living hasn’t increased.
The case is similar for couples claiming the benefit. For instance, a couple under 25 will receive £490.60 for both of them.
But if one attains 25 years, the benefit will increase to £596.58—a boost of more than £65 despite no other changes.
It could be a lifeline for people just about to hit this milestone, as the £20 Universal Credit increase is set to be withdrawn in just over a week.
According to research conducted by Opinium for the New Economics Foundation (NEF), barely 10% of individuals support the cut.
According to the study, based on the UK’s Minimum Income Standard, the reduction will leave many single adults with only 54% of the income they require to keep afloat. This is before the impact of rising energy prices on household budgets.
The Same Thing for Couple and Families
Couples and families face a similar situation; the research found that if the boost is eliminated, couples with two children will only have 63% of the income they need to survive.
According to the think tank, the social security system has been slashed by £14 billion over the last decade. The £20 increase, which cost roughly £6 billion, hardly replaced half of this decrease.
When the uplift is eliminated, it is estimated that 21.4 million individuals, including seven million children, will live in homes that do not have enough money to cover all of their essential needs.
And many think it’s only going to get worse.
According to Sarah Arnold, senior Economic at the New Economics Foundation, the UK government is in the midst of a cost-of-living crisis, and it’s sure to sharpen dramatically for people on the lowest incomes over the coming few months.
The economist further noted that a triple punch of price increases for food and energy bills, assistance cuts, and tax hikes is due to impact millions of people at the same time.
Most concerning, though, is that the support for the five million families on Universal Credit would be reduced by much to £1,040 per year as of next month.
Sarah also observed that the United Kingdom’s safety net is already one of the lowest among advanced economies and in the country’s postwar history.
Denzil is an experienced writer and a procurement graduate on a mission to eliminate poor regurgitated content while advocating for top-notch digital content. When he’s not writing, Denzil joins the rest of the world watching the English Premier League games.