Latest news with #Turn2us
Yahoo
3 days ago
- Business
- Yahoo
The £1,200 savings boost millions of universal credit claimants are missing out on
Millions of people could be eligible to save an extra £1,200 through a savings scheme they are currently missing out on. People who claim universal credit looking for ways to make their money stretch a little further can earn 50p for every £1 they put away for the next four years through the government's Help to Save scheme. First launched in 2018, the scheme was extended in April and will now run until April 2027. While the government estimates that around 3 million people could benefit from Help to Save, just under 517,000 accounts have been opened since its launch in 2018. Here's what you need to know about Help to Save, including who is eligible, how to join and how much you can save. Help to Save is a type of savings account set up by the government to help lower income workers to build up funds. It allows people receiving universal credit to get a bonus of 50p for every £1 they save over 4 years. Help to Save is backed by the government so all savings in the scheme are secure. The Help to Save scheme is designed to help lower income households boost their savings. To qualify for the scheme, you must: Be a UK resident If you live overseas, be posted overseas as a crown servant or with the armed forces (or be their spouse or civil partner) Receive universal credit Have earned income of £1 or more in your (or your and your partner's, if it's a joint claim) last monthly assessment period Anna Stevenson, benefit expert at Turn2us - a charity that helps people living in poverty - told Yahoo News it "regularly hears from people receiving universal credit who are going without essentials." "Saving can feel next to impossible - especially with cuts looming for many. But for those who can put a little aside, the Help to Save scheme offers a useful way to build up even a small buffer against future shocks.' People put their deposits into a government Help to Save account. Each month, you can save anywhere between £1 to £50 by paying into the account with a debit card, standing order, or bank transfer. It's worth bearing in mind that you do not have to pay money in every month. While you can make as many deposits as you like over the course of each month, those deposits in total cannot exceed £50. The bonus is paid every two years. The first 50% is paid after that two-year period, calculated on the highest balance you had during those two years. The second 50% bonus is paid after four years, based on how much your highest balance increased in years three and four compared to the initial two-year period. It's worth bearing in mind that you can only withdraw money from your Help to Save account to your bank account. You get paid bonuses from the government at the end of the second and fourth years of saving. They're based on how much you've saved. These won't be paid into your help to save account, but directly into your bank account. For example, for every £100 you deposit, you get £50 from the government. If you save the maximum amount, £50 a month for two years — totalling £1,200 — your bonus after two years would be £600. If you then save another £50 a month for the next two years — another £1,200 — your total bonus after four years would be another £600, for a total of £1,200 in government bonuses. How much you save The government bonus £100 £50 £500 £250 £1,000 £500 £2,400 (max) £1,200 (max) You'll need to sign in to set up a Help to Save account. This can be done through the government website. You'll be able to create sign in details when you log in for the first time. You'll need your National Insurance number or postcode and two of the following: A valid UK passport A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) Details from a self assessment tax return in the last 2 years, if you made one Information held on your credit record, if you have one (such as loans, credit cards or mortgages) You'll be asked to provide your UK bank details when you apply. After you have applied, you can also sign in to your Help to Save account through the HMRC app. Whether you have a single or joint claim, universal credit claimants can save up to £6,000 without there being any impact on your benefits. After this point, for every £250 you have in savings over £6,000, you'll lose £4.35/month of universal credit and £1 of council tax reduction. For example, if your combined savings total was £7,000, you'd get £17.40/month less via universal credit and £4 less via a council tax reduction on your annual bill. It's worth double checking whether joining the scheme can take you over the limit. The benefit is, however, how much you can tailor your savings. By calculating the monthly amount you can save — with the added government bonus — you can ensure you make the most of the scheme without going over the savings threshold for universal credit.
Daily Record
17-05-2025
- Business
- Daily Record
People reaching State Pension age can no longer claim these benefits
Some people may not be aware of benefits or payments which can no longer be claimed after reaching retirement age. The latest figures from the Department for Work and Pensions (DWP) show the State Pension is now providing essential financial support for 13 million people across Great Britain, including more than one million living in Scotland. This regular payment is now worth up to £230.25 per week for those on the New State Pension (claimed after April 6, 2016), or £176.45 each week for the Basic State Pension (Category A or B). How much someone receives from the contributory benefit depends on the number of National Insurance years they have accrued before reaching the current retirement age of 66 - you need at least 10 to qualify for any State Pension payment. For older people approaching the official age of retirement at some point this year, it's important to know which benefits will continue, new ones you may now qualify for and those you can no longer make a new claim for. Your State Pension age is the same as your Pension Credit qualifying age unless you are a man born before December 6, 1953. You can check your State Pension age and whether you can start claiming Pension Credit on the 'Check your State Pension age' page of the website here. Benefits affected by your pension age Turn2us has created an essential guide to the benefits you cannot claim from the Department for Work and Pensions (DWP) when you reach State Pension age or Pension Credit age. For full details on each of the topics listed below, visit the Turn2us website here. Pension Credit age When you reach State Pension age you can no longer claim: Income-based Jobseeker's Allowance Income-related Employment and Support Allowance (ESA) Income Support Universal Credit Turn2us advises: "If you live with a partner and one of you is pension age and the other is not yet pension age, benefit entitlement can be complicated." State Pension age When you reach State Pension age you can no longer claim: Jobseeker's Allowance (JSA) Contributory/New Style Employment and Support Allowance (ESA) You cannot make a new claim for Disability Living Allowance (DLA), Personal Independence Payment (PIP) or Adult Disability Payment (ADP) - the devolved disability benefit has now replaced all new claims for PIP for people in Scotland - once you have reached State Pension age. However, if you were already receiving DLA, PIP, or ADP you can renew the claim even though you are over State Pension age. This can only be done as long as you are claiming for the same health conditions you received the award for and your last claim ended less than 12 months before you reached State Pension age. People living in Scotland currently receiving DLA or PIP will be transferred to the new devolved Social Security Scotland system before the end of this year. Bereavement Support Payment and Widowed Parent's Allowance are also not available once you reach State Pension age. Benefits not affected by your State Pension age You can claim these benefits even if you are over State Pension age: Child Benefit (delivered by HMRC) Carer's Allowance - you may not be eligible for the full financial element depending on your income from State Pension Guardian's Allowance Statutory Sick Pay (SSP) You can also claim these benefits even if you are over State Pension age, but only if you meet the benefit-specific income threshold: Pension Credit Housing Benefit Council Tax Support Support for Mortgage Interest Help with Health Costs Winter Heating Payment - Scotland-only Cold Weather Payment - England and Wales only Warm Home Discount Scheme Winter Fuel Payment - only those over State Pension age in receipt of Pension Credit or other qualifying income-related benefits will receive the money from this year Pension Age Winter Heating Payment - Scotland only, same qualifying rules as Winter Fuel Payment For more details about benefits when you reach State Pension age, visit the Turn2Us website here.
Daily Mirror
05-05-2025
- Business
- Daily Mirror
Full list of DWP benefits you can no longer claim once you reach this age
You may not realise that reaching a certain age will disqualify you from a number of benefits. People reaching a certain age this year will no longer be eligible for a number of benefits from the Department for Work and Pensions (DWP). Many may not realise that getting to State Pension or Pension Credit age could see a series of payments stopped. According to the latest DWP figures, the State Pension is now providing crucial financial support to 13 million people across Great Britain. This regular payment is currently valued at up to £230.25 per week for those on the New State Pension (claimed after April 6, 2016), or £176.45 each week for the Basic State Pension (Category A or B). The amount someone receives from this contributory benefit depends on the number of National Insurance years they have accumulated before reaching the current retirement age of 66 - a minimum of 10 years is required to qualify for any State Pension payment. For older individuals nearing the official retirement age this year, it's vital to understand which benefits will continue, new ones you may now be eligible for and those you can no longer submit a new claim for. Your State Pension age is the same as your Pension Credit qualifying age unless you are a man born before December 6, 1953. You can verify your State Pension age and whether you can begin claiming Pension Credit on the 'Check your State Pension age' page of the website here. Benefits affected by your pension age Turn2us has compiled an essential guide to the benefits you cannot claim from the DWP when you reach State Pension age or Pension Credit age. Pension Credit age As reported by the Daily Record, on reaching State Pension age, individuals will find they can no longer lay claim to certain benefits such as Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance (ESA), Income Support, and Universal Credit. The charity Turn2us explains: "If you live with a partner and one of you is pension age and the other is not yet pension age, benefit entitlement can be complicated." State Pension age Regarding State Pension age, this milestone means that you are ineligible to claim Jobseeker's Allowance (JSA) and Contributory/New Style ESA. Additionally, initiating claims for Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Adult Disability Payment (ADP)—the latter has replaced PIP for new applicants in Scotland —is not possible once State Pension age has been reached. However, if you already receive DLA, PIP, or ADP when you hit State Pension age, you are permitted to renew your claim under the same health conditions provided by the award, as long as your previous claim concluded less than a year before reaching the pension threshold. Scottish residents who presently benefit from DLA or PIP can expect to be transitioned into the newly established Social Security Scotland system this Spring. It should be noted that Bereavement Support Payment and Widowed Parent's Allowance are likewise inaccessible when one attains State Pension age. Benefits not impacted by your State Pension age Even if you are over State Pension age, you can still claim these benefits: Child Benefit (delivered by HMRC) Carer's Allowance - your eligibility for the full financial element may depend on your income from State Pension Guardian's Allowance Statutory Sick Pay (SSP). You can also claim these benefits even if you are over State Pension age, but only if you meet the benefit-specific income threshold: Pension Credit Housing Benefit Council Tax Support Support for Mortgage Interest Help with Health Costs Winter Heating Payment - Scotland-only Cold Weather Payment - England and Wales only Warm Home Discount Scheme Winter Fuel Payment - only those over State Pension age in receipt of Pension Credit or other qualifying income-related benefits will receive the money from this year. Pension Age Winter Heating Payment - Scotland only, same qualifying rules as Winter Fuel Payment.
Daily Mirror
02-05-2025
- Business
- Daily Mirror
Six DWP benefits you are not eligible for on reaching State Pension age
State Pension age matches your qualifying age for Pension Credit, unless you are a man born before December 6, 1953 Data from the Department for Work and Pensions (DWP) reveals that the State Pension provides crucial financial support to 13 million individuals in Great Britain. This frequent payment is presently worth up to £230.25 per week for those on the New State Pension (claimed after April 6, 2016), or £176.45 each week for the Basic State Pension (Category A or B). The portion of State Pension an individual receives from this contributory benefit is based on the number of National Insurance years they have accumulated before reaching the retirement age of 66. To qualify for any State Pension payment, a minimum of 10 years of National Insurance contributions is required. For people approaching the official retirement age this year, it is important to understand which benefits will continue and which new benefits you may now be eligible for. Just as importantly, you need to know which benefits you can no longer claim, the Record reports. Your State Pension age is the same as your Pension Credit qualifying age unless you are a man born before December 6, 1953. You can confirm your State Pension age and whether you can start claiming Pension Credit on the 'Check your State Pension age' page of the website here. What benefits are affected by pension age? Turn2us has created a crucial guide to the support you can and cannot claim from the Government on reaching Pension Credit or State Pension age. For further insight on the topics listed below, visit the Turn2us website here. Pension Credit age Usually, when you reach this age, you can no longer claim: Income-based Jobseeker's Allowance Income Support Universal Credit Income-related Employment and Support Allowance (ESA) Turn2us clarifies: "If you live with a partner and one of you is pension age and the other is not yet pension age, benefit entitlement can be complicated." People are encouraged to use the Turn2us benefit calculator to determine which benefits they are eligible for or consult a benefits adviser for further assistance. State Pension age When you reach State Pension age, you can no longer claim: Contributory/New Style Employment and Support Allowance (ESA) Jobseeker's Allowance (JSA) You also can't start claiming Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Adult Disability Payment (ADP) if you haven't already done so. But if you were getting DLA, PIP, or ADP before reaching State Pension age, you can keep renewing as long as it's for the same health issues and your last claim was less than a year before you hit that age. In Scotland, people on DLA or PIP will be moved over to Social Security Scotland this Spring. Bereavement Support Payment and Widowed Parent's Allowance aren't available after reaching State Pension age either. What benefits are not affected by State Pension age? You can claim these benefits even if you are over State Pension age: Child Benefit (delivered by HMRC) Carer's Allowance - you may not be eligible for the whole financial element depending on your income from State Pension Guardian's Allowance Statutory Sick Pay (SSP) You can also claim these benefits even if you are over State Pension age, but only if you meet the benefit-specific income threshold: Article continues below Pension Age Winter Heating Payment - Scotland only, same qualifying rules as Winter Fuel Payment Support for Mortgage Interest Winter Fuel Payment - only those over State Pension age in receipt of Pension Credit or other qualifying income-related benefits will receive the money from this year Cold Weather Payment - England and Wales only Pension Credit Warm Home Discount Scheme Housing Benefit Council Tax Support Winter Heating Payment - Scotland-only Help with Health Costs
The Sun
25-04-2025
- Business
- The Sun
Major Universal Credit change launching in DAYS giving 1.2million households a £420 pay rise
A MAJOR change to Universal Credit, set to take effect in just a few days, will grant claimants a £420 increase in payments. The Department for Work and Pensions (DWP) will lower the cap on the maximum level of deductions that can be taken from a claimant's benefit payments from April 30. 1 The benefits office can deduct money from a Universal Credit claimant's allowance to help them make debt repayments. These deductions can cover a range of debts, including benefit advances, historical overpayments of child tax credits, rent and council tax arrears, as well as outstanding water and utility bills. The amounts are subtracted from a claimant's Universal Credit standard allowance each month until the debt is fully repaid. Currently, the DWP and third parties can typically deduct up to 25% of a claimant's standard allowance to manage their debt repayments. However, this threshold is set to be reduced to 15% by the end of the month, under a new scheme dubbed the Fair Repayment Rate. The change is projected to benefit 1.2 million households, including 700,000 families with children, boosting their incomes by up to £420 a year. However, some Universal Credit claimants will still have more than 25% of their standard allowance taken off if deductions are related to fraud penalties or sanctions. How will the cut work in practice? THE Universal Credit standard allowance is paid at four different rates: Single and aged under 25: £316.98 per month Single and aged 25 or over: £400.14 per month Joint claimants both aged under 25: £497.55 per month Joint claimants where one is aged 25 or over: £628.10 Therefore, if an individual under 25 faces a 25% deduction, their standard allowance will decrease by £79.25 per month, reducing their payment to £237.73 per month. However, if the same individual faces a 15% deduction, their standard allowance will decrease by £47.55 per month (£31.70 less than a 25% deduction), reducing their payment to £269.43 per month. How does work affect Universal Credit? There are a number of reasons why the Department for Work and Pensions (DWP) will deduct money from your Universal Credit allowance to help pay off any debts. Conor Lawlor, benefits expert at Turn2us, says: "These debts can accrue in several ways, including for Universal Credit and other benefit overpayments (even if the overpayment was made in error by DWP), benefit advances and recovering hardship payments. "The DWP can also deduct on behalf of third parties if a claimant is in debt to them, including for rent and service charge arrears, council tax arrears, court fines, child maintenance, and for utilities like electricity, gas and water." However, it's important to note that not every deduction is compulsory, and some are voluntary. Here are the six main forms of deductions you could be affected by... 1. ADVANCE PAYMENTS One of the most common reasons for a Universal Credit deduction is because a claimant applied for advance payments. When you make a new claim for Universal Credit, you will normally receive your first payment seven days after the end of your first assessment period (four weeks) - this is known as the "five-week wait". You can apply for an advance payment of your Universal Credit if you are in financial hardship while you wait for your first payment, for example, if you can't afford to pay your rent or buy food. However, as this is a loan, you will be expected to pay it back. The first deduction is made on the day you get your first payment. You must usually pay back the advance within: 24 months if you apply for the advance if you've made a new claim for Universal Credit Six months if you apply for the advance because of a change of circumstances 2. BUDGETING ADVANCE The budgeting advance should not be confused with an advance payment. Instead, this is an interest-free loan that can be used to cover certain expenses like household furniture, equipment, and clothing. What you get will depend on how much you need. The smallest amount you can borrow is £100. You can get up to: £348 if you're single £464 if you're part of a couple £812 if you have children The budgeting loan repayments will be taken automatically from your benefits. The amount you repay is based on your income. A budgeting advance should normally be repaid within one year, but this is extendable to 18 months in exceptional circumstances. 3. UNIVERSAL CREDIT OVERPAYMENTS If you've been paid too much Universal Credit you'll accure an overpayment. To learn more about an overpayment, sign into your online Universal Credit account, go to your journal, and look for a message about overpayments. If money is being deducted from your Universal Credit to pay back the overpayment, the amount deducted depends on your circumstances. If you are receiving Universal Credit and have no earned income, the maximum amount that can be deducted from your Universal Credit for overpayments is 15% of your standard allowance. If you are receiving Universal Credit and have some earned income, the maximum amount that can be deducted from your Universal Credit for overpayments is 25% of your standard allowance. 4. TAX CREDIT OVERPAYMENTS If you are getting tax credits and you claim Universal Credit, HMRC will be told to stop your tax credits. However, if you receive tax credits after you have made your claim to Universal Credit this could result in you being paid too much tax credits. Universal Credit will take action to get this money back as well as any other tax credit over-payments you have. HMRC will send you a letter called "Your Tax Credits over-payments (TC1131)". This will tell you about any tax credit repayments that will be taken out of your Universal Credit payments. 5. FRAUD AND SANCTIONS If you deliberately do not provide details about a change in your circumstances that could affect your Universal Credit payments or you give false information, this is fraud. A fraud penalty or sanction will reduce your Universal Credit standard allowance. This can be up to 100% of your standard allowance if you are single, or up to 50% for each person in a joint claim. If a fraud penalty or sanction is being taken from your Universal Credit payments, no other repayment or deduction will be taken, except for last-resort deductions. 6. THIRD-PARTY DEDUCTIONS A third-party deduction is an amount that is taken from your Universal Credit payments and paid direct to the person or organisation you owe money to, such as your landlord or your gas or electricity supplier (Fuel Direct). Third-party deductions can also be taken, without your permission, for things like: Housing costs (for example, rent arrears for your current address) Unpaid rates Child maintenance Only three third-party deductions can be taken at any one time. Universal Credit will send you a message in your online journal when a third-party deduction starts. Third-party deductions are fixed at 5% of your Universal Credit standard allowance for each third party. However, for rent, deductions are fixed between 10% and 20%. Unlike the other non-voluntary deductions listed above, claimants can initiate deductions for certain bills to help better manage their costs. For example, you can contact your energy supplier to set up deductions for your ongoing bills through the Fuel Direct scheme. How to get free debt help There are several groups which can help you with your problem debts for free. Citizens Advice - 0800 144 8848 (England) / 0800 702 2020 (Wales) StepChange - 0800138 1111 National Debtline - 0808 808 4000 Debt Advice Foundation - 0800 043 4050 You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting or Speak to one of these organisations - don't be tempted to use a claims management firm. They say they can write off lots of your debt in return for a large upfront fee. But there are other options where you don't need to pay.
