Latest news with #UNIVERSALCREDIT
Scottish Sun
2 days ago
- Business
- Scottish Sun
Pay rise for thousands on Universal Credit TODAY as benefits hiked – check how much more you will get
We reveal what the new upped rates are below PAY DAY Pay rise for thousands on Universal Credit TODAY as benefits hiked – check how much more you will get Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THOUSANDS on Universal Credit will receive a pay rise from today. Some on the benefit have had to wait until now to get the new bumper rate which officially came into effect on April 7. Sign up for Scottish Sun newsletter Sign up 1 Universal Credit rates rose by 1.7% in April Credit: Alamy From this date, Universal Credit rose by 1.7%, in line with the Consumer Price Index (CPI) level of inflation in September 2024. However, people have had to wait to get the higher rate due to the way the benefit is assessed. Universal Credit is, typically, paid monthly but is based on your circumstances in your last assessment period. The new uplift does come into effect until after the first full one-month assessment period, which started on or after April 7. If you're someone who had their assessment period start after April 7, you would have seen your benefits rise as early as May 13. But if your assessment period was before this, you will have had to wait longer to get the pay rise. And some people have had to wait until today to receive the new 1.7% higher rate. This is when you should have received a pay rise based on your assessment period: March 28 to April 27 - increase applied in June, you'll get it in your payment on June 1 March 29 to April 28 - increase applied in June, you'll get it in your payment on June 2 March 30 to April 29 - increase applied in June, you'll get it in your payment on June 5 March 31 to April 30 - increase applied in June, you'll get it in your payment on June 6 April 1 to April 31 - increase applied in June, you'll get it in your payment on June 7 April 2 to May 1 - increase applied in June, you'll get it in your payment on June 8 April 3 to May 2 - increase applied in June, you'll get it in your payment on June 9 April 4 to May 3 - increase applied in June, you'll get it in your payment on June 10 April 5 to May 4 - increase applied in June, you'll get it in your payment on June 11 April 6 to May 5 - increase applied in June, you'll get it in your payment on June 12 (today) NEW UNIVERSAL CREDIT RATES Here is a full list of the new benefit rates for 2025-26: How does work affect Universal Credit? Universal Credit standard allowance (monthly) Single, under 25: £316.98 (up from £311.68) Single, 25 or over: £400.14 (up from £393.45) Joint claimants both under 25: £497.55 (up from £489.23) Joint claimants, one or both 25+: £628.10 (up from £617.60) Extra amounts for children First child (born before April 6, 2017): £339 (up from £333.33) Child born after April 6, 2017 or subsequent children: £292.81 (up from £287.92) Disabled child (lower rate): £158.76 (up from £156.11) Disabled child (higher rate): £495.87 (up from £487.58) Extra for limited capability for work Limited capability: £158.76 (up from £156.11) Work-related activity: £423.27 (up from £416.19) Carer's element Caring for a severely disabled person at least 35 hours a week: £201.68 (up from £198.31) Work allowance increases Higher work allowance (no housing): £684 (up from £673) Lower work allowance (with housing): £411 (up from £404) OTHER UNIVERSAL CREDIT NEWS Councils across England have started dishing out help after receiving funding through the Household Support Fund (HSF). And some are distributing support to those on benefits including Universal Credit. Middlesbrough Council has started issuing payments worth up to £120 to those in need. Meanwhile, households in Reading are in line to receive £125 vouchers in the coming weeks if they receive free school meals, which are paid to families on benefits including Universal Credit. Each council in England decides who is eligible for a portion of funding individually. However, in most cases you'll qualify for help if you're struggling to cover essential bills like energy and food. Some local authorities are giving out help to those on benefits like Universal Credit, while others are assessing people's eligibility purely based on income and not factoring in benefits. Contact your council to find out what help is on offer. You can find what council area you fall under by visiting 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. 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. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Scottish Sun
25-04-2025
- Business
- Scottish Sun
Major Universal Credit change launching in DAYS giving 1.2million households a £420 pay rise
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) 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 change will benefit 1.2million households, including 700,000 families with children, boosting their incomes by up to £420 a year Credit: Alamy 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? TYPES OF UNIVERSAL CREDIT DEDUCTIONS 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.
