Universal Credit payment boost worth £420 for over one million people
Universal Credit payment boost worth £420 for over one million people
The DWP changed how much money can be deducted from your Universal Credit payments and it means one million households in the UK will be better off in 2022
The Department for Work and Pensions (DWP) recently confirmed that over one million households grappling with debt will retain an average of £420 more of their benefits each year
(Image: John Myers )
The Department for Work and Pensions (DWP) recently confirmed that over one million households grappling with debt will retain an average of £420 more of their benefits each year, following a change to Universal Credit implemented at the end of last month.
The Fair Repayment Rate sets a cap on how much individuals in debt can have deducted from their benefits to repay what they owe. The maximum amount that could be taken from someone's Universal Credit standard allowance payment to repay debt was 25 per cent, but this was reduced to 15 per cent on April 30.
This alteration applies to all assessment periods commencing on or after that date and means claimants due their monthly payments from May 30 will benefit from the reduction. It equates to an average of £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children, whilst aiding people to pay down their debts in a sustainable manner.
This is part of the UK Government's Plan for Change to put more money into people's pockets and enhance living standards and signifies the Government's initial step in a broader review of Universal Credit to ensure it continues to fulfil its purpose.
Chancellor Rachel Reeves introduced the Fair Repayment Rate at the Autumn Budget, as part of wider efforts to elevate living standards, combat poverty, and tackle the cost of living crisis, reports the Daily Record.
The Chancellor remarked: "As announced at the Budget, 1.2 million households will keep more of their Universal Credit and will be on average £420 better off a year. This is our plan for change delivering, easing the cost of living and putting more money into the pockets of working people."
This comes amid revelations that nearly 2.8 million households experience reductions in their Universal Credit each month to address debts, with the updated rate aiming to balance debt repayment while ensuring individuals can still manage their essential expenses.
In an assertion of the government's commitment to worker prosperity, Work and Pensions Secretary Liz Kendall stated: "As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits they're entitled to - which will boost financial security and improve living standards up and down the country."
She further emphasised the government's dedication to improving prospects, saying, "We're delivering meaningful change to ensure everyone has a fair chance, the support they need, and real hope for the future."
Article continues below
The introduction of the Fair Repayment Rate joins a suite of ambitious efforts under the UK Government's Plan for Change, aiming to spark growth and broaden wealth across the nation.
Spotlighting employment as a critical escape from poverty, the Labour Government unveiled the Get Britain Working White Paper, setting sights on an 80 per cent employment rate goal through major reforms to Jobcentres, the creation of a new employment and advice service, plus a youth guarantee ensuring young people are either gaining work experience or pursuing education.
This is in addition to raising the National Minimum and National Living Wage to ensure that work is financially rewarding.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
33 minutes ago
- Glasgow Times
Defence review is ‘message to Moscow'
The Government has pledged £1.5 billion to set up at least six factories, and will support the procurement of up to 7,000 UK-built long-range weapons in response to the strategic defence review (SDR) to be published on Monday. The new funding will see UK munitions spend hit £6 billion during this parliament and support around 1,800 jobs throughout the country. Sir Keir Starmer has called the review a 'radical blueprint' and pledged a 'wave of investments' in shipbuilding, drone technology and cyber defences. Defence Secretary John Healey said the £6 billion of investment would 'equip our forces for the future' and 'create the jobs in every part of the UK'. Sir Keir Starmer and John Healey on board HMS Prince of Wales in Plymouth, ahead of an eight-month deployment to the Indo-Pacific region on Operation Highmast (Richard Pohle/The Times/PA) 'This is a message to Moscow as well. This is Britain standing behind, making our armed forces stronger but making our industrial base stronger, and this is part of our readiness to fight, if required,' he told the BBC's Sunday Morning With Laura Kuenssberg programme. He said Russia is 'attacking the UK daily' as part of some 90,000 cyber attacks from state-linked sources were directed at the UK's defence over the last two years. A cyber command to counter such threats is being set up as part of the review. Asked if he expected a form of real-world attack by Russia on the UK in the coming years, he said: 'We have to be prepared. Nato has to be prepared. We see Putin in Ukraine trying to redraw international boundaries by force … it's part of the growing Russian aggression.' He added that is why Nato and the UK are 'stepping up our ability to deter as well as to defend in the future'. 'The world is more uncertain. The tensions are greater but we prepare for war in order to secure the peace. If you're strong enough to defeat an enemy you deter them from attacking in the first place,' Mr Healey said. He said plans to reach 2.5% of GDP spending on defence by 2027 and an 'ambition' to hit 3% in the next parliament were 'enough to deliver the SDR's vision that sets out tomorrow, and that vision is a transformation of Britain's armed forces.' He said there was 'no doubt' the Government would reach 3% in the next parliament. But he said he does not expect to make progress towards raising the number of soldiers to 73,000 until the next parliament. 'We've narrowed the gap, but we've still got more people leaving than joining. 'The first job is to reverse that trend and then I want to see in the next parliament our ability to start to increase the number,' he said. Defence minister Alistair Cairns, writing in The Mirror, said there were plans to increase cadet numbers by 30% with new opportunities for young people to get into the armed forces. And more than £1.5 billion in extra funding will go to military homes for urgent repairs such as fixing boilers and roofs, and other issues including tackling damp. Shadow justice secretary Robert Jenrick welcomed the Government's pledge to increase defence spending but said he was 'sceptical' as to whether the Chancellor would make good on the plans. Mr Jenrick said the UK should reach 3% of GDP spending on defence 'within this parliament'. 'We think that 2034 is a long time to wait given the gravity of the situation,' he told the Sunday Morning With Trevor Phillips programme on Sky News.
The Herald Scotland
43 minutes ago
- The Herald Scotland
Defence review is ‘message to Moscow'
The new funding will see UK munitions spend hit £6 billion during this parliament and support around 1,800 jobs throughout the country. Sir Keir Starmer has called the review a 'radical blueprint' and pledged a 'wave of investments' in shipbuilding, drone technology and cyber defences. Defence Secretary John Healey said the £6 billion of investment would 'equip our forces for the future' and 'create the jobs in every part of the UK'. Sir Keir Starmer and John Healey on board HMS Prince of Wales in Plymouth, ahead of an eight-month deployment to the Indo-Pacific region on Operation Highmast (Richard Pohle/The Times/PA) 'This is a message to Moscow as well. This is Britain standing behind, making our armed forces stronger but making our industrial base stronger, and this is part of our readiness to fight, if required,' he told the BBC's Sunday Morning With Laura Kuenssberg programme. He said Russia is 'attacking the UK daily' as part of some 90,000 cyber attacks from state-linked sources were directed at the UK's defence over the last two years. A cyber command to counter such threats is being set up as part of the review. Asked if he expected a form of real-world attack by Russia on the UK in the coming years, he said: 'We have to be prepared. Nato has to be prepared. We see Putin in Ukraine trying to redraw international boundaries by force … it's part of the growing Russian aggression.' He added that is why Nato and the UK are 'stepping up our ability to deter as well as to defend in the future'. 'The world is more uncertain. The tensions are greater but we prepare for war in order to secure the peace. If you're strong enough to defeat an enemy you deter them from attacking in the first place,' Mr Healey said. He said plans to reach 2.5% of GDP spending on defence by 2027 and an 'ambition' to hit 3% in the next parliament were 'enough to deliver the SDR's vision that sets out tomorrow, and that vision is a transformation of Britain's armed forces.' He said there was 'no doubt' the Government would reach 3% in the next parliament. But he said he does not expect to make progress towards raising the number of soldiers to 73,000 until the next parliament. 'We've narrowed the gap, but we've still got more people leaving than joining. 'The first job is to reverse that trend and then I want to see in the next parliament our ability to start to increase the number,' he said. Defence minister Alistair Cairns, writing in The Mirror, said there were plans to increase cadet numbers by 30% with new opportunities for young people to get into the armed forces. And more than £1.5 billion in extra funding will go to military homes for urgent repairs such as fixing boilers and roofs, and other issues including tackling damp. Shadow justice secretary Robert Jenrick welcomed the Government's pledge to increase defence spending but said he was 'sceptical' as to whether the Chancellor would make good on the plans. Mr Jenrick said the UK should reach 3% of GDP spending on defence 'within this parliament'. 'We think that 2034 is a long time to wait given the gravity of the situation,' he told the Sunday Morning With Trevor Phillips programme on Sky News.
Rhyl Journal
an hour ago
- Rhyl Journal
Defence review is ‘message to Moscow'
The Government has pledged £1.5 billion to set up at least six factories, and will support the procurement of up to 7,000 UK-built long-range weapons in response to the strategic defence review (SDR) to be published on Monday. The new funding will see UK munitions spend hit £6 billion during this parliament and support around 1,800 jobs throughout the country. Sir Keir Starmer has called the review a 'radical blueprint' and pledged a 'wave of investments' in shipbuilding, drone technology and cyber defences. Defence Secretary John Healey said the £6 billion of investment would 'equip our forces for the future' and 'create the jobs in every part of the UK'. 'This is a message to Moscow as well. This is Britain standing behind, making our armed forces stronger but making our industrial base stronger, and this is part of our readiness to fight, if required,' he told the BBC's Sunday Morning With Laura Kuenssberg programme. He said Russia is 'attacking the UK daily' as part of some 90,000 cyber attacks from state-linked sources were directed at the UK's defence over the last two years. A cyber command to counter such threats is being set up as part of the review. Asked if he expected a form of real-world attack by Russia on the UK in the coming years, he said: 'We have to be prepared. Nato has to be prepared. We see Putin in Ukraine trying to redraw international boundaries by force … it's part of the growing Russian aggression.' He added that is why Nato and the UK are 'stepping up our ability to deter as well as to defend in the future'. 'The world is more uncertain. The tensions are greater but we prepare for war in order to secure the peace. If you're strong enough to defeat an enemy you deter them from attacking in the first place,' Mr Healey said. He said plans to reach 2.5% of GDP spending on defence by 2027 and an 'ambition' to hit 3% in the next parliament were 'enough to deliver the SDR's vision that sets out tomorrow, and that vision is a transformation of Britain's armed forces.' He said there was 'no doubt' the Government would reach 3% in the next parliament. But he said he does not expect to make progress towards raising the number of soldiers to 73,000 until the next parliament. 'We've narrowed the gap, but we've still got more people leaving than joining. 'The first job is to reverse that trend and then I want to see in the next parliament our ability to start to increase the number,' he said. Defence minister Alistair Cairns, writing in The Mirror, said there were plans to increase cadet numbers by 30% with new opportunities for young people to get into the armed forces. And more than £1.5 billion in extra funding will go to military homes for urgent repairs such as fixing boilers and roofs, and other issues including tackling damp. Shadow justice secretary Robert Jenrick welcomed the Government's pledge to increase defence spending but said he was 'sceptical' as to whether the Chancellor would make good on the plans. Mr Jenrick said the UK should reach 3% of GDP spending on defence 'within this parliament'. 'We think that 2034 is a long time to wait given the gravity of the situation,' he told the Sunday Morning With Trevor Phillips programme on Sky News.
