Here’s how you could get a £50 a week boost to Universal Credit
HUNDREDS of thousands of Brits who are due to switch to Universal Credit could be better off if Tories use the budget to plug a funding hole, new analysis has revealed.
MPs are pressuring the Chancellor to reverse cuts to the welfare budget in next week’s fiscal statement, which could make life easier for up to 400,000 Brits.
The cuts were made under ex-Chancellor George Osborne, and would mean that some Brits won’t be better off under the new Universal Credit system.
The rollout, which has been plagued with problems so far, is set to be take place across the whole country next year.
New analysis from the Resolution Foundation shows that if the cuts to work allowances were reversed back to the sort of system that was in place before, around 400,000 fewer people would lose out.
Most would be at least £50 a week better off if ministers returned to the old system - showing the cuts have dramatically tipped the balance askew between winners and losers under Universal Credit.
What is Universal Credit and why is it running into problems?
Universal Credit replaces the following benefits:
- Child Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
The government claims around three million working households would see cash gains from Universal Credit.
Treasury officials said a couple with two children where one parent earns £30,000 a year would benefit by £425.
A single parent with one child and no housing costs earning £15,000 a year will get £170 more, officials claimed.
If you receive any of these benefits, you can’t claim at the same time - you will be moved to Universal Credit when it is introduced in your area.
Whether you can claim Universal Credit depends on where you live and your circumstances.
Currently, Universal Credit is mainly claimed by the unemployed, or those on a low income.
Former Work and Pensions Secretary Iain Duncan-Smith announced the introduction of a Universal Credit in 2010 designed to simplify the benefits system and improve work incentives - making it the landmark policy of his time in government.
At the moment the think tank estimated that around 3.2million are expected to be worse off when they go onto the new programme - and 1.2million of those poorer by more than £50 a week.
But if the cuts were reversed, that number would be slashed dramatically.
Insiders are confident the Treasury will make the move to try and quell a growing Tory rebellion over the flagship benefits programme.
Tory MP Robert Halfon, part of the group pressuring the Chancellor to think again, told The Sun Online: "Universal Credit should be about getting working people out of the poverty trap, not letting them fall through it.
"It is vital that the Chancellor makes it history and ensures that UC does what it says on the tin - helping the lower paid get on the jobs and financial security ladder of opportunity."
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 pay out.
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 payments 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
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Millions more are set to go onto Universal Credit in the coming months - as it continues its rollout across the country.
But last week it was revealed that its set to be paused in order to try and fix some of the problems in the system - and more money could be pumped in to make sure that Brits don’t lose out.
Many claimants say they don’t get their payments under the new system for many weeks after they are told they will - and end up being pushed into debt as a result.
Some are forced into arrears on their rent and bills - and others have even had to resort to prostitution as a result, one MP said.
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