10 Universal Credit loopholes that mean you can apply for extra cash support worth £1,000s
OVER six million people claim Universal Credit which is worth thousands of pounds a year.
How much you receive depends on your personal circumstances such as age and if you have any children.
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But there are also a number of loopholes meaning those on the benefit can claim extra support.
Here are 10 that are worth potentially thousands of pounds.
Payments boost if you're on certain elements
Universal Credit is designed to help people back into work.
This means if you get a job, the amount you receive each month goes down under what's known as the "taper rate".
For every £1 you earn, your UC payment goes down by 55p.
This means your income becomes your wages plus your reduced UC payment.
However, the taper rate can be different based on your specific circumstances, including if you have a disability or children.
You can use a benefits calculator to see how much you can claim. A free-to-use one is available via www.gov.uk/benefits-calculators.
Claiming 85% of childcare costs back
Working parents on Universal Credit can claim up to 85% of the money they spend on childcare back.
Since June 2023, parents starting work or increasing their working hours have been able to get payments up front as well.
How does work affect Universal Credit?
The most you can claim is £1,031 per month for one child and £1,768 per month for two or more children.
More details can be found via www.gov.uk/guidance/universal-credit-childcare-costs.
Getting an advanced payment
When you first make a claim for Universal Credit you usually receive your first payment seven days after the end of the first assessment period - around five weeks after first making a claim.
However, you can apply for an "advance payment" if you are struggling to cover the cost of food or rent.
You will need to pay back the money you get from the advance either through wages or future Universal Credit payments.
More details can be found via www.gov.uk/guidance/universal-credit-advances.
Getting a Budgeting Loan
You might be able to get a Budgeting Loan if you're on Universal Credit and need to cover the cost of an emergency.
For example, if your fridge broke, you need new clothes or help moving home.
The lowest amount you can borrow is £100. You could get up to:
£348 if you're single
£464 if you have a partner
£812 if you or your partner claim child benefit
You won't be eligible if you have savings of more than £1,000, or £2,000 if you or your partner are 63 or over.
You will also not be accepted if you have been given an advance in the past and not paid it back.
You can find out more by visiting www.gov.uk/universal-credit/other-financial-support.
Waived minimum income floor for self-employed
The minimum income floor is based on how much a person your age would earn on the National Living Wage after tax and National Insurance Contributions.
If you earn more than the minimum, the Government will calculate your Universal Credit payment using your actual earnings.
If you earn less the Government will calculate your earnings based on the minimum income floor.
Alternative payment arrangements
These are set up for households who struggle with a monthly Universal Credit payment.
For example, if you are struggling to pay your rent, you can arrange for the money to be sent directly to your landlord.
Or you can be paid more frequently, such as twice a month, or request for payments to be split if you're part of a couple.
This can be arranged in special circumstances, despicably if a claimant is in a vulnerable positions such as struggling with addiction.
Council tax reduction
Some on Universal Credit can get a reduction on their council tax, but whether you are eligible or not depends on where you live.
You need to apply for a reduction via your local council's website.
To make a claim, you will need to provide the council with information on your earnings and what pensions and benefits you receive.
To find which is your local council, visit www.gov.uk/apply-council-tax-reduction.
In some cases, you might be able to get up to 100% wiped off your bill which could save you thousands of pounds.
You can get freebies
Claiming Universal Credit also opens up a host of other freebies including free NHS prescriptions.
You will qualify for help if the total take-home pay for your household in your last assessment period was:
£435 or less
£935 or less if your Universal Credit includes a payment for a child, or you have a limited capability for work or limited capability for work and work related activity
You can get free NHS prescriptions, NHS dental treatment, NHS sight tests and even free NHS wigs and fabric supports.
Find more information via the NHS website.
You can get help through the Household Support Fund
If you're on Universal Credit you might be able to get help with the cost of living via the Household Support Fund (HSF).
The giant fund is worth £742million and, generally, paid to those on a low income, vulnerable or on benefits.
The type of help on offer varies from supermarket vouchers to free cash payments, but you could be in line for up to £500.
Each council in England sets its own criteria for who is eligible for help.
Lots of local authorities have pages on their websites dedicated to their Household Support Fund allotment.
Apply for extra benefits
If you are suffering with any long-term illnesses, you could be entitled to claim extra benefits alongside your Universal Credit.
For example, Personal Independent Payments (PIP) is a benefit for people who are under state pension age and need help with day-to-day life because of a long-term illness or disability.
When you claim, you'll need:
Your contact details
Date of birth
National Insurance number
Bank or building society account number and sort code
Your doctor or health worker's name, address and telephone number
Dates and addresses for any time you've spent abroad, in a care home or hospital
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us' benefits calculator works out what you could get.
Entitledto's free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use Policy in Practice's calculator to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
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