Millions of Brits on Universal Credit to get a pay rise from Tuesday
MILLIONS of Brits on Universal Credit will see payments go up from Tuesday when the new tax year starts.
The benefit boost will rise inline with September 2020's rate of inflation, which was 0.5%.
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It's the second year in a row welfare payments have increased after a six year benefit freeze.
Universal Credit claimants will also continue to benefit from a £20 a week coronavirus uplift, which was introduced last year as a temporary measure to get hard-up Brits through the coronavirus crisis.
Chancellor Rishi Sunak then extended the boost for another six months in the Budget on March 3.
Claimants will continue to get the extra cash until September, after which payments will then significantly drop from October.
Below, we explain how your payments will change from Tuesday through to the end of September, and then separately how they will change again from October.
Six million people are currently claiming Universal Credit and experts have warned they face mounting debts as the coronavirus crisis continues.
How much are payments going up by in April?
In April 2021, Universal Credit payments will rise as follows for the 2021/2022 financial year.
How much you're entitled to depends on your individual circumstances, including your age, whether you have any disability and if you have children or are a carer.
Standard allowance (per month)
- For those single and aged under 25, the standard allowance will rise from £342.72 to £344
- For those single and aged 25 or over, the standard allowance will rise from £409.89 to £411.51
- For joint claimants both under 25, the standard allowance will rise from £488.59 to £490.60
- For joint claimants where one or both are 25 or over, the standard allowance will rise from £594.04 to £596.58
Extra amounts for children
- For those with a first child born before April 6, 2017, the extra amount is going up from £281.25 to £282.50
- For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is going up from £235.83 to £237.08
- For those with a disabled child, the lower rate addition payment is going up from £128.25 to £128.89 and the higher rate from £400.29 to £402.12
Extra amounts for limited capability for work
- For those deemed to have limited capability for work, the extra amount is going up from £128.25 to £128.89
- For those deemed to have limited capability for work or work-related activity, the extra amount is going up from £341.92 to £343.63
Extra amounts for being a carer
Universal Credit claimants can get an additional amount if you're caring for a severely disabled person for at least 35 hours a week.
The amount you get a month will rise from £162.92 to £163.73.
Increased work allowance
- The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £512 to £515
- The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £292 to £293
How will payments change from October?
The £20 a week boost to Universal Credit payments is applied to the standard allowance element of your payments.
This means that from October, how much you are entitled to will fall back down to the standard levels.
Here's how much your payments will change by, compared to the basic rates set for the 2020/21 tax year, excluding the coronavirus add on.
Standard allowance (per month)
- For those single and aged under 25, the standard allowance will rise from £256.05 to £257.33 (this is lower than the 2020 amount of £342.72, which includes the coronavirus boost)
- For those single and aged 25 or over, the standard allowance will rise from £323.22 to £324.84 (this is lower than the 2020 amount of £409.89, which includes the coronavirus boost)
- For joint claimants both under 25, the standard allowance will rise from £401.92 to £403.93 (this is is lower than the 2020 amount of£488.59, which includes the coronavirus boost)
- For joint claimants where one or both are 25 or over, the standard allowance will rise from £507.37 to £509.91 (this is lower than the 2020 amount of £594.04, which includes the coronavirus boost)
Other benefits going up from April 6
THOSE still claiming benefits from the old system - known as legacy benefits - will also get more money from next week.
Legacy benefits include job seeker's allowance, employment and support allowance, income support and housing benefit.
You can’t make a new claim for these benefits anymore, but many people who haven’t yet moved to Universal Credit are still claiming them.
Here are the other benefits increasing from April 6 2021 and the weekly amounts for each.
- Attendance Allowance higher rate rises to £89.60 (from £89.15), lower rate rises to £60.00 (from £59.70)
- Carers Allowance rises to £67.60 (from £67.25)
- Disability Living Allowance care component highest amount rises to £89.60 (from £89.15), the middle amount rises to £60.00 (from £59.70) and the lowest amount goes up to £23.70 (from £23.60)
- Disability Living Allowance mobility component higher amount rises to £62.55 (from £62.25) and the lower amount goes up to £23.70 (from £23.60)
- Employment and Support Allowance for under 25s goes up to £59.20 (from £58.90 and for those aged 25 and over, rises to £74.70 (from £74.35).
- Housing benefit personal allowance rises to £59.20 (from £58.90) for under 25s and to £74.70 (from £74.35) for 25s and over, while those entitled to main phase ESA will get £74.70 (up from £74.35).
- Incapacity Benefit (long-term) rises to £114.70 (from £114.15).
- Contributions-based Jobseekers Allowance rises from £59.20 (from £58.90) for under 25s and to £74.70 (from £74.35 for those 25 and over.
- Income-based Jobseekers Allowance rises to £59.20 (from £58.90) for under 25s and to £74.70 (from £74.35) for those 25 and over.
- Maternity, paternity and shared parental pay is rising to £151.97 (from £151.20).
- Pension Credit is rising to £177.10 (from £173.75).
- Personal Independence Payment (PIP) daily living component is rising to £89.60 (from £89.15) for enhanced and £60 (from £59.70) for standard.
- Personal Independence Payment mobility component is rising to £62.55 (from £62.25) for enhanced and to £23.70 (from £23.60) for standard.
- State Pension is rising to £122.55 (from £121.95).
- Statutory Parental Bereavement Pay will go up to £151.97 (from £151.20).
- Statutory Sick Pay standard rate will go up to £96.35 (from £95.85).
Deductions are increasing too from April
Deductions are taken off your Universal Credit payments to repay debts in council tax, energy or water bills, rent, court fines, compensation orders, child maintenance or budgeting or advance loans.
The amount that can be taken from your payments is also set to rise from Tuesday. We outline how this will affect your payments below.
It's worth noting that from April 12, 2021, the amount of time advance loans will need to be repaid will double to 24 months, which will reduce your monthly deductions.
For third party deductions where 5% of the standard allowance is taken, the amount is going up as follows:
Workers on Universal Credit are being urged to check payslips over the bank holiday weekend or risk losing benefits next month.
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