Universal Credit is a catch-all benefit payment paid out to millions each month to those on a low income.
It replaces individual benefits such as Child Tax Credit and Jobseeker’s allowance – giving one payment instead.
From today, October 8, certain claimants will be seeing an increase to their payout.
The increase has been brought in to bridge the gap between the old benefits system and Universal Credit.
Those who switched to Universal Credit from Income Support, Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), Housing Benefit or Pension Credit saw a drop in payment if they were also receiving a top-up allowance called Severe Disability Premium (SDP).
The people who moved away from those benefits were shocked to learn they were receiving far less money.
Campaigners fought to get back the lost money, and the Department for Work and Pensions (DWP) finally agreed to give “transitional payments” in a bid to make up the difference.
How much is Universal Credit increasing?
From October 8, eligible claimants will get a boost of up to £405 per month.
Thousands of of people will see an increase of £120, £285 or £405 in their bank accounts for their next Universal Credit payment, if eligible.
The specific amount depends on whether someone is claiming as a single person or a couple, and whether or not they are expected to be looking for work.
Who is eligible for the Universal Credit increase?
Not everyone on Universal Credit will have a boos too their payments.
The amount given, and eligibility are as follows:
- £285 a month – for claimants not in the Universal Credit limited capability for work related activity (LCWRA) group (roughly the equivalent of the lower rate SDP at £65.85 a week)
- £120 a month – where the Universal Credit claimant has been determined as having limited capability for work and therefore already receives an additional amount in their UC award because of their health condition.
- £405 a month – where joint claimants were receiving the higher couple rate SDP in their existing benefits
- £285 a month – where joint claimants were receiving the lower couple rate SDP and are not receiving the LCWRA component in Universal Credit
- £120 a month – where joint claimants were receiving the lower couple rate SDP and are receiving the LCWRA component in Universal Credit
You can check what you’re entitled to on the Government’s Universal Credit website.