Universal Credit and coronavirus – how will it work and will existing claimants get more money?
MORE than 500,000 people applied for Universal Credit after being laid off during the coronavirus crisis - making it "almost impossible" to complete a claim.
The Government has announced the Universal Credit standard allowance will be raised by £1,000 a year for the next 12 months.
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The Department for Work and Pensions (DWP) said in just nine days, 500,000 people rushed to apply for vital payments.
Benefits experts have warned that only a fraction of them would have succeeded as the service was inundated.
First time claimants said they called the DWP between 80 and 100 times but with no luck.
This comes as Working Tax Credit will be upped by the same amount, as part of a £7billion boost to the benefit system as coronavirus continues to grip the UK.
In addition, Chancellor Rishi Sunak has suspended the Universal Credit minimum income floor.
The minimum income floor is how much the Department for Work and Pensions (DWP) expects you to earn each month and applies to workers who have been self-employed for more than a year.
Mr Sunak says four million vulnerable households will benefit from the changes - here's what we know so far.
What to do if you have problems claiming Universal Credit
IF you're experiencing trouble applying for your Universal Credit, or the payments just don't cover costs, here are your options:
- Apply for an advance - Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it's a loan which means the repayments will be automatically deducted from your future Universal Credit payout.
- Alternative Payment Arrangements - If you're falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you're part of a couple.
- Budgeting Advance - You may be able to get help from the Government to help with emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.
- Cut your Council Tax - You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your existing ones aren't enough to cover your rent.
- Foodbanks - If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the
When will the increases begin?
The DWP says increases to the Universal Credit standard allowance and Working Tax Credit payments will come into force from April 6, 2020.
The raised amount should kick in automatically for everyone who is eligible, meaning you shouldn't need to do anything if you're entitled to more money.
It'll also apply to both new and existing claimants.
Work and Pensions Secretary Therese Coffey said: "We will do whatever it takes to protect the most vulnerable and get them through these unprecedented times.
"We are standing by those who rely on the welfare safety net as we work towards turning the tide on this disease and moving on together."
Both increases will apply for 12 months, so until April 2021. There's been no word on what will happen after this date.
The minimum income floor will be suspended from April 6 as well.
How much more money could you get?
Welfare payments were set to increase in April 2020 anyway as the four-year benefit freeze is due to come to an end.
This includes Universal Credit and Working Tax Credit, with payments set to go up 1.7 per cent, in line with inflation.
The DWP has confirmed the boost announced last week will be on top of the already planned increases.
The Universal Credit standard allowance - the amount you're paid each month - currently ranges between £251.77 and £498.89 depending on your age and whether or not you're part of a couple.
The DWP says the standard rate will be increased by £86.67 per month (equivalent to £20 per week) on top of the planned annual uprating.
This means claimants will be up to £1,040 better off, but the exact amount you'll get will depend on your individual circumstances.
This is how the standard allowance is changing, as of April 6:
- Single, under 25 - rising from £251.77 to £342.72 (equivalent to £4,112.64 a year)
- Single, 25 or over - rising from £317.82 to £409.89 (equivalent to £4,918.68 a year)
- Couple, joint claimants both under 25 - rising from £395.20 to £488.59 (equivalent to £5,863.08 a year)
- Couple, joint claimants, one or both 25 or over - rising from £498.89 to £594.04 (equivalent to £7,128.48 a year)
Here's how the basic element of is changing, as of April 6.
The amount you can claim will depend on your circumstances, including your level of household income.
But the DWP says the increase could mean up to an extra £20 each week.
- Working Tax Credit, basic element - rising from £1,960 to £3,040 per year.
You may be entitled to extra money on top of this, depending on your circumstances and income, but it's only the basic element that's receiving an additional boost by the government.
However, the additional elements will rise with inflation on April 6 as previously announced.
How do these benefits currently work?
Universal Credit replaces six benefits - including Working Tax Credit and Housing Benefit - with one monthly payment.
You may be entitled to it if you are on a low income or out of work, which is why the government is suggesting those who've been forced out of a job due to coronavirus should apply for it.
You get your standard allowance, plus potentially extra on top if you have children, a disability or health condition, or you care for someone with a disability.
Working Tax Credit, meanwhile, depends on the hours of paid work you do each week, plus your income and circumstances.
Again, you may then get extra "elements" on top depending on whether you're in a couple, have children, a disability, and how many hours you work.
How do I apply for these benefits?
As JobCentre phone lines are currently extremely busy, new claimants are asked to apply for Universal Credit online.
You can do this by the website - you'll need information about your income, your housing situation and proof of your identity.
As Working Tax Credit has mostly been replaced by Universal Credit, you can only make a new claim if you get a severe disability premium.
Find out more information on the website.
MORE ON MONEY
You can use a free calculator to help you work out how much you’ll get on Universal Credit or benefits after the coronavirus shake-up.
Many mortgage lenders, for example, are offering payment holidays while some banks are offering bigger overdrafts.
You should also consider turning to a free help organisation such as or .