Universal Credit payments – have they gone up and how can I claim?

UNIVERSAL Credit payments are a welcome relief to hard-up Brits - but many continue to struggle.

The benefits have been frozen for five years with 2.5 million needing UC to survive.

Has Universal Credit gone up?

Fortunately for those 2.5m households on Universal Credit and legacy benefits, yes it has.

The five-year freeze came to an ended on Wednesday, April 1.

Legacy benefits are the welfare payments struggling households received before Universal Credit was rolled out.

The rise was announced in October, following the release of September's inflation figures which are used to calculate benefits increases.

Yet, that is not all as extra coronavirus measures aimed at helping struggling families stay afloat during the lockdown came into force on Monday, April 6.

Chancellor Rishi Sunak laid out a number of temporary measures as part of his Budget last month, seeing a further £20 a week added to payments on top of the last week's rise.

The changes include increases in the Universal Credit standard allowance and Working Tax Credits, as well as a suspension of the Universal Credit minimum income floor.

Chancellor Rishi Sunak says four million vulnerable households will benefit from Monday's changes, below we explain all you need to know.

How the changes affect you

Standard allowance and working tax credits

The standard allowance - the amount that everyone is entitled to if they're accepted on Universal Credit - rose by roughly £20 a week for the next 12 months adding £1,000 over the year.

The DWP says the standard rate has been increased by £86.67 per month on top of the planned annual uprating.

This means claimants can be up to £1,040 better off, but the exact amount you'll get depends on your individual circumstances.

Prior to the coronavirus increase, the Universal Credit standard allowance ranged between £251.77 and £498.89 depending on your age and whether or not you're part of a couple.

Now, the standard allowance stands at:

• Single, under 25  - rose from £251.77 to £342.72 (equivalent to £4,112.64 a year)
• Single, 25 or over  - rose from £317.82 to £409.89 (equivalent to £4,918.68 a year)
• Couple, joint claimants both under 25  - rose from £395.20 to £488.59 (equivalent to £5,863.08 a year)
• Couple, joint claimants, one or both 25 or over  - rose from £498.89 to £594.04 (equivalent to £7,128.48 a year)

Working tax credit was also raised by the same amount, on top of the increase linked to inflation.

The basic amount for working tax credit was up to £1,960 a year but rose to £3,040 for the next 12 months.

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 received an additional boost by the government.

Yet the DWP says the increase could mean up to an extra £20 each week.

The raised amounts should have kicked 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 for 12 months.

Minimum Income Floor (MIF)

Temporarily removing the Universal Credit Minimum Income Floor (MIF) helps self-employed workers who are losing income either due to self-isolating or as a result of the lockdown.

Universal Credit is calculated for self-employed workers whose business has been running for more than 12 months by predicting what they may earn. This is known as the MIF.

It's worked out by multiplying the national minimum wage with the number of hours you agreed to work.

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.