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Wales Online
16 hours ago
- Business
- Wales Online
Millions of Universal Credit claimants set for bigger payments from this week
Millions of Universal Credit claimants set for bigger payments from this week The annual uprating to benefits took place on April 7 with Universal Credit payments increasing by 1.7% - however, the higher rates only apply to Universal Credit assessment periods that started on or after that date Universal Credit payments will increase this month (Image: John Myers ) Millions of Universal Credit recipients will experience an increase in their payments from this month as the annual benefits uprating takes effect. Universal Credit payments saw a 1.7% rise from April 7 - however, as Universal Credit is paid monthly in arrears, most individuals won't see their first increased payment until this month. The elevated rates only apply to Universal Credit assessment periods that commenced on or after April 7. Your assessment period is utilised to determine your Universal Credit amount, based on earnings or deductions during this timeframe. Universal Credit payments are disbursed a week following the final date of each assessment period. This means if your last Universal Credit assessment period began on April 7, you'll start receiving the higher payments from this week. For money-saving tips, sign up to our Money newsletter here . Some individuals would have seen their first increased payment at the end of June. Universal Credit comprises a standard allowance, which is determined by your age and whether you're claiming individually or as part of a couple, reports the Mirror. The standard allowance is the fundamental amount you receive before any additional elements - such as having children or being unable to work due to illness - or any deductions are considered. Here's how much the Universal Credit standard allowance has increased:. Article continues below For singles under 25: from £311.68 a month to £316.98 a month. a month to a month. For singles aged 25 or over: from £393.45 a month to £400.14 a month. a month to a month. For joint claimants both under 25: from £489.23 a month to £497.55 a month. a month to a month. For joint claimants, both or one aged 25 or over, the amount has increased from £617.60 a month to £628.10 a month. Universal Credit is taking the place of six older legacy benefits, namely Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance, and Housing Benefit. Claims for Tax Credits, Income Support, income-based Jobseeker's Allowance, and Housing Benefit have now been closed. However, households claiming income-related Employment and Support Allowance (ESA) still need to transition to Universal Credit. The goal is to reach out to all remaining ESA claimants by September 2025. The Department for Work and Pensions (DWP) aims to have everyone on Universal Credit by March 2026. In other DWP updates, the benefits department has recently begun prompting Universal Credit claimants to verify any changes in their circumstances. If you're a Universal Credit claimant, it's your duty to report any changes in your circumstances to the DWP. This could include changes at work, a change of address, or alterations in your living arrangements. Article continues below Failure to report changes to Universal Credit could result in receiving an incorrect amount of money, which you may be required to repay.
Daily Mirror
19 hours ago
- Business
- Daily Mirror
Universal Credit claimants due pay rise this month - how much more you'll get
Universal Credit payments rose by 1.7% from April 7 - however, Universal Credit is paid monthly in arrears, so most people will not receive their first higher rate until this month Millions of Universal Credit claimants will see their payments increase from this month as the annual uprating to benefits kick in. Universal Credit payments rose by 1.7% from April 7 - however, Universal Credit is paid monthly in arrears, so most people will not receive their first higher rate until this month. The higher rates only apply to Universal Credit assessment periods that started on or after April 7. Your assessment period is used to calculate how much Universal Credit you get, based on earnings or deductions in this period. Universal Credit payments are paid a week after the last date of each assessment period. It means if your last assessment period Universal Credit started on April 7, you will get the higher payments from this week. Some people would have received their first higher payment at the end of June. Universal Credit is made up of a standard allowance which is based on your age and if you're claiming as a single person, or in a couple. The standard allowance is the basic amount you get before any additional elements - for example, if you have children or are unable to work due to illness - or any deductions are taken into account. Here is how much the Universal Credit standard allowance has risen by: Single under 25: from £311.68 a month to £316.98 a month Single 25 or over: from £393.45 a month to £400.14 a month Joint claimants both under 25: from £489.23 a month to £497.55 a month Joint claimants, one or both 25 or over: from £617.60 a month to £628.10 a month Universal Credit is replacing six older legacy benefits, including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance and Housing Benefit. Existing claims for Tax Credits, Income Support, income-based Jobseeker's Allowance and Housing Benefit have now been closed - but households claiming income-related Employment and Support Allowance (ESA) still need to be moved to Universal Credit. The aim is for all remaining ESA claimants set to be contacted by September 2025. The Department for Work and Pensions (DWP) wants everyone moved to Universal Credit by March 2026. In more DWP news, the benefits department has recently started prompting Universal Credit claimants to confirm if they've had a change in circumstances. If you claim Universal Credit, then it is your responsibility to report any change in circumstances to the DWP. This can include changes at work, if you've moved address, or your living arrangements have changed. If you don't report a change to Universal Credit, you could receive too much or too little money, which you may need to pay back.
Wales Online
2 days ago
- Business
- Wales Online
DWP to scrap six benefits by 2026 as claimants urged to take action
DWP to scrap six benefits by 2026 as claimants urged to take action The Department for Work and Pensions (DWP) is continuing to phase out older benefits this year meaning claimants need to take action The Department for Work and Pensions (DWP) is continuing to phase out older benefits this year meaning claimants need to take action (Image: WalesOnline/Rob Browne ) People receiving certain benefits are being urged to act if they wish to continue receiving payments. The Department for Work and Pensions (DWP) is persisting with the phasing out of older benefits for millions this year. A few years back, the DWP began transitioning individuals on specific benefits, known as legacy benefits, over to universal credit, which was launched in 2013. This process, referred to as managed migration, has been implemented gradually over several years, with individuals being notified that they would be transitioned and, in some cases, would need to make a universal credit claim. Full-scale managed migration kicked off in April 2023, extending to different regions of Great Britain. The six legacy benefits being phased out include: Child and working tax credit Income-based jobseeker's allowance Income support Income-related employment Support allowance Housing benefit Tax credit is the first of 2025's legacy benefit closures. For money-saving tips, sign up to our Money newsletter here . As per the DWP website, the benefit will cease in April 2025, meaning recipients must respond to their migration notices to continue receiving benefits. Those affected have three months from the date on their migration notice to apply for universal credit. Moreover, the planned transition of approximately 800,000 recipients of income-related employment and support allowance (ESA) alone, or income-related ESA in conjunction with housing benefit, has been expedited. This had initially been postponed to 2028/29. The DWP commenced issuing migration notices to these claimants in September 2024, with the goal of notifying all individuals in this group by December 2025. The DWP intends to transfer all legacy benefit recipients to universal credit by March 2026, finalising the rollout and ceasing all legacy benefits by this date. Article continues below Here is the full timeline of managed migration: April 2024: Migration notices were sent to households in receipt of Income Support, Income Support with Housing Benefit, and Tax Credits with Housing Benefit. Migration notices were sent to households in receipt of Income Support, Income Support with Housing Benefit, and Tax Credits with Housing Benefit. June 2024: Migration notices were sent to households receiving Housing Benefit only. Migration notices were sent to households receiving Housing Benefit only. July 2024: Migration notices were sent to households in receipt of Employment Support Allowance with Child Tax Credits. Migration notices were sent to households in receipt of Employment Support Allowance with Child Tax Credits. August 2024: Tax Credit claimants who are over state pension age were invited to apply for either Universal Credit or Pension Credit. Tax Credit claimants who are over state pension age were invited to apply for either Universal Credit or Pension Credit. September 2024: Migration notices began to be sent to claimants of income-based Jobseeker's Allowance (JSA), and those on income related Employment Support Allowance (ESA) without Child Tax Credits. Migration notices began to be sent to claimants of income-based Jobseeker's Allowance (JSA), and those on income related Employment Support Allowance (ESA) without Child Tax Credits. December 2025: The DWP aims to notify all claimants of income-related ESA only, or income-related ESA and Housing Benefit, by this date, a group previously scheduled for migration in 2028/29. The DWP aims to notify all claimants of income-related ESA only, or income-related ESA and Housing Benefit, by this date, a group previously scheduled for migration in 2028/29. March 2026: All legacy benefit claims are scheduled to be closed
Wales Online
3 days ago
- General
- Wales Online
Letters sent out as people could be owed over £7,000 after error
Letters sent out as people could be owed over £7,000 after error HMRC is writing to around 370,000 people to inform them of a mistake that could be affecting their state pension, with thousands of individuals owed a significant sum HMRC has uncovered a historical error that means thousands of women could be due compensation to the tune of £7,859. The error primarily impacted women who gave birth in the 80s and 90s under the Labour Party government's tax department. Consequently, HMRC is now sending letters to these women about their potential entitlement to a significant payout. The mistake relates to Home Responsibilities Protection (HRP), a scheme aimed at reducing the number of years needed on your National Insurance record to qualify for the full state pension. Tax experts suggest that those most affected by this oversight are stay-at-home mothers who claimed Child Benefit between 1978 and 2000. For money-saving tips, sign up to our Money newsletter here . During this time, if you were at home raising children or caring for someone and receiving either Child Benefit or Income Support, you were eligible for HRP. However, the system was altered in 2010 when HRP was replaced with National Insurance credits. Unfortunately, for thousands of people, their HRP entitlement wasn't correctly recorded or transferred to their National Insurance record. This lapse by HMRC, which has now been recognised and is being rectified, means some individuals have gaps in their records, according to Birmingham Live. What's more worrying is that as a result, they may be receiving less state pension than they're entitled to, or will be in the future. The tax department has initiated the process of sending letters to roughly 370,000 individuals. They've pinpointed just over 5,300 instances of underpayment from January to September 2024, amounting to a total debt of around £42 million. On average, each person is due approximately £7,859. It's projected that about 43,000 of the affected individuals have unfortunately passed away, however, their families are still eligible to claim the owed sum. HMRC is prioritising those who have reached pensionable age and reaching out to them first. Article continues below To qualify, you must have been receiving child benefit in your own name (not a spouse or partner), your child was under 16 for the entire financial year in question, and you were not contributing to the married woman's 'reduced stamp'. Get daily breaking news updates on your phone by joining our WhatsApp community here .
Wales Online
20-05-2025
- Business
- Wales Online
DWP manage migration to Universal Credit to start in a few weeks
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info Changes are on the horizon for Universal Credit claimants, with policy and benefits shifts pushing many towards Universal Credit from their existing support arrangements. The move, termed 'managed migration', will see legacy benefits phased out for new claimants. These encompass a selection of payments previously offered through the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC), such as Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance (ESA), Housing Benefit, Working Tax Credit, and Child Tax Credit. You can find more comprehensive information on the transition to Universal Credit and any payment increases for current recipients below.... Universal Credit migration The DWP is stepping up its efforts in the transition to Universal Credit. Initially, the DWP commenced the process with 60,000 notifications in February, with plans to intensify this figure to 83,000. Resolute on completing the migration, the final batch of notices is anticipated to be distributed by September. The DWP stated that this gradual progression will "allow a little more time before the end of March 2026 to provide support for our more vulnerable customers and complete the migration of ESA cases to Universal Credit". The DWP has allocated an extra £15 million to the Help to Claim initiative, bolstering support for over 800,000 people transitioning from ESA to Universal Credit by March 2026, which is two years earlier than the original 2028 deadline. Sir Stephen Timms MP, Minister for Social Security and Disability, recently stated: "This funding boost will support many people as they make the move from old benefits to Universal Credit - ensuring customers feel confident and informed throughout the application process." He urged claimants to be proactive, saying: "I want to encourage anyone receiving a migration notice over the coming months to act without delay to secure quick access to benefit entitlement." Sir Stephen also highlighted broader reforms, adding: "The biggest reforms to employment support for a generation will also ensure more people get the help they need to get into work and on at work, by overhauling Jobcentres, tackling inactivity with local work, health and skills plans, and delivering a Youth Guarantee." The Help to Claim service is dedicated to providing expert guidance to those starting a new Universal Credit claim or transitioning from an older benefits system. The service ensures continuity of support until the claimant receives their first correct payment. Payment increase Labour has confirmed that the standard allowance of Universal Credit will surpass the rate of inflation for the remainder of the current government's term. Baroness Maeve Sherlock said: "The proposed increases are inflation (measured by CPI), plus: 2.3 percent in 2026/27, 3.1 percent in 2027/28, 4.0 percent in 2028/29 and 4.8 percent in 2029/30. "As such, in each year, the rates will be what they would have been under CPI uprating and then increased by the relevant percentage figure." The current Universal Credit rate is: Single and under 25 - £316.98 Single and 25 or over - £400.14 Couple both under 25 - £497.55 (for you both) Couple if either partner are 25 or over £628.10 (for you both) Sign up for the North Wales Live newsletter sent twice daily to your inbox Find out what's happening near you
