Universal Credit UK: DWP issues benefits payment warning to those looking to claim

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Universal Credit claims have surged by several million this year, as the UK felt the impact of the coronavirus pandemic. Amid the uptake in this form of state support, the DWP has this month reminded a particular group of people that they may be eligible for the payment.

Reminding those in low-paid work that they may be eligible for the payment, the DWP suggested thousands of workers could be able to make a claim.

Those in this situation may well be able to receive Universal Credit, although it’s important to be aware that the amount a person gets will be affected by earnings.

The payment decreases by 63 pence for every £1 that is earned.

Some may be able to keep a portion of their earnings before this taper rate kicks in.

This is what’s known as the work allowance.

A person may be able to benefit from the work allowance if they or their partner are either:

  • Responsible for a child or young person
  • Living with a disability or health condition that affects their ability to work.

There are two different monthly work allowances, with the one that applies to the eligible person being dependent on their circumstances.

Should a person get help with housing costs, it’s currently £292.

Those who do not get help with housing costs would get the monthly work allowance of £512.

Last week, the DWP issued a reminder to members of the public that they may be entitled to Universal Credit.

Minister for Welfare Delivery Will Quince said: “We are committed to levelling up people’s incomes.

“Many people in work may be eligible to claim Universal Credit and a range of other benefits without even realising.

“Universal Credit is providing an invaluable safety net for people who need it, and I want to make sure no one is missing out on the support they’re entitled to.

“I encourage anyone who thinks they could be eligible to find out as soon as possible by heading to gov.uk/benefits-calculators.”

However it also came with a warning, and this could affect people who already receive some benefits payments.

The Department asked people to remember that any benefits which Universal Credit – such as Working Tax Credit or Child Tax Credit – would end once a person submits an application.

And, they wouldn’t be able to claim them again, even if it’s decided that they aren’t able to get Universal Credit.

What is Universal Credit replacing?

Universal Credit is replacing:

  • Child Tax Credit
  • Housing Benefit
  • Income Support
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Working Tax Credit.

Should a person currently get any of these benefits, then they are directed not to do anything, unless they have a change of circumstances they need to report, or the DWP contacts them about moving to Universal Credit.

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