Latest news with #UNIVERSALCredit
Scottish Sun
14-05-2025
- Business
- Scottish Sun
Universal Credit switch warning for 400,000 households after 380,000 have benefits stopped by ignoring key letter
We've explained exactly what you need to do TAKE NOTE Universal Credit switch warning for 400,000 households after 380,000 have benefits stopped by ignoring key letter THOUSANDS of households on Universal Credit are being warned not to ignore a key letter. The warning comes as the government progresses with its plans to transfer all legacy benefit claimants onto Universal Credit, through a process referred to as "managed migration." Advertisement 1 Around 400,000 more households receiving income-related ESA are now being urged to make the move to Universal Credit Credit: Alamy The managed migration process officially began back in July 2022 after a successful pilot in July 2019. Since then, households receiving one of five legacy benefits, have been receiving postal notifications outlining the steps required to transition to Universal Credit. Upon receiving a migration letter, claimants are given up to three months to make the switch. Failure to act within this timeframe could result in the loss of existing benefits. Advertisement The latest data from the Department for Work and Pensions (DWP) shows that 381,440 individuals lost their benefits after failing to act within this time frame. Around 400,000 more households receiving income-related employment and support allowance (ESA) are now being urged to make the move to Universal Credit. ESA provides financial support for those unable to work due to illness or disability. Initially, the government planned to transfer all ESA claimants to Universal Credit by the end of 2028. Advertisement However, this deadline was brought forward to March 2026. To date, 200,000 claimants have successfully transitioned to Universal Credit, leaving approximately 400,000 still to make the switch. Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence Last week, The Sun revealed that the DWP is increasing the number of migration notices sent each month to 83,000. The DWP has already closed new claims for four legacy benefits - tax credits, income support, income-based jobseeker's allowance, and housing benefit. Advertisement This stepped-up approach means the DWP aims to have contacted all remaining legacy ESA claimants by September 2025 The move is designed to provide households with sufficient time to successfully transition to Universal Credit before the March 2026 deadline. Which benefits are stopping? UNIVERSAL Credit is replacing six benefits under the old welfare system, commonly called legacy benefits. They are: Working tax credit Child tax credit Income-based jobseeker's allowance Income support income-related employment and support allowance Housing benefit If you're on any of these benefits now, you can choose to move over - but you might not be better off. You should consider carefully what moving over means for your money, as you can't move back once you're on Universal Credit. Using an online benefits calculator, which is free and easy to use from charities such as Turn2Us and EntitledTo, can help you compare. You may be moved to Universal Credit if your circumstances change, such as moving home, changing your working hours, or having a baby. But eventually, everyone will be moved over to Universal Credit under the managed migration process. HELP CLAIMING UNIVERSAL CREDIT As well as benefit calculators, anyone moving from Tax Credits to Universal Credit can find help in a number of ways. You can visit your local Jobcentre by searching at Advertisement There's also a free service called Help to Claim from Citizen's Advice: England: 0800 144 8 444 Scotland: 0800 023 2581 Wales: 08000 241 220 You can also get help online from advisers at
Scottish Sun
07-05-2025
- Business
- Scottish Sun
I followed Martin Lewis tip and got £1,200 free cash bonus while on Universal Credit
A UNIVERSAL Credit claimant has revealed how a simple savings hack helped her pocket a £1,200 free bonus cash. Claire spotted a savings tip on TV and four years later, she's sitting on a £1,200 bonus thanks to one simple move recommended by Martin Lewis. 1 A woman bagged £1,200 of free cash following Martin Lewis' key tip The savvy saver, who was on Universal Credit when she opened her Help to Save account, has now officially cashed out after diligently putting money away each month and she's urging others not to miss out. She shared her story with Martin Lewis' Money Saving Expert team, saying: 'I've saved for the last 4 years... I'm about to cash out my last £2,400 plus my second £600 bonus, so £3,600 in total. "It was tight some months, but I always pulled the cash together to get the max back! Thanks for the tip all those years ago!' Claire's bonus came from the Help to Save scheme, which is a Government-backed savings account that rewards low-income earners with 50p for every £1 they put away. It's designed for those on Universal Credit or tax credits, and it's been described by Martin as 'totally unbeatable'. The account allows users to save between £1 and £50 per month over four years. After two years, savers get a 50% bonus on the highest balance they held, even if they dipped into it. Then, if they carry on saving for another two years, they get another 50% bonus based on what they added in years 3 and 4. Just by saving £50 a month, she unlocked the full £1,200 in free Government money. Now, anyone on Universal Credit who earned at least £1 in the last month can open an account. Skipton free ISA buns Previously, only those earning £793.17 or more in take-home pay per month could apply, but from April 6, the threshold was lowered dramatically. That's an extra 550,000 people now eligible, bringing the total pool to 2.7million. Once you open an account, you can save anything from £1 to £50 a month. After two years, you get a tax-free bonus equal to 50% of the highest amount you had in the account, even if you withdrew it. Then, you can continue saving for another two years and earn a second bonus calculated on the increase in your balance. That means over four years, savers could walk away with £1,200 in free Government cash on top of the money they've set aside. The Money Saving Expert explained: 'Even if you only save a few pounds a month, the rewards are unmatched. It's rare I use the word 'unbeatable' but this truly is.' Better yet, the account is easy-access, meaning you can withdraw money whenever you need to which is a lifeline for many juggling tight budgets. However, there is a caveat. If your total savings, including Help to Save , exceed £6,000, it could reduce your Universal Credit payments. But for most savers who stick to the scheme alone, this won't be a problem. Also, the bonus itself isn't counted towards the threshold, only what you've physically deposited. There's one situation where Help to Save might not be the best option and that's if you're carrying expensive debt. In that case, it could be wiser to pay down what you owe before building up savings. But for everyone else, it's a financial no-brainer. And the perks of being on Universal Credit don't stop there. Claimants can also get up to 85% of childcare costs covered, access Sure Start Maternity Grants worth £500, and apply for support from the £421million Household Support Fund via their local council. You can cash in on £29,000 worth of free cash and benefits. If you're unsure whether you're eligible for Universal Credit or Help to Save, you can check using tools. In a cost-of-living crisis, this could be the most rewarding £1 you ever.
Scottish Sun
29-04-2025
- Business
- Scottish Sun
Over a million families on Universal Credit to get £420 boost TOMORROW – check if you get the benefit
Read more to find out how INCOME BOOST Over a million families on Universal Credit to get £420 boost TOMORROW – check if you get the benefit UNIVERSAL Credit claimants will get a £420 increase in benefits payments from tomorrow as changes are introduced. The Department for Work and Pensions (DWP) has announced a change to the Fair Repayment Rate to come into effect April 30. Advertisement 2 There are six main types of repayment Universal Credit claimants could be subject to Credit: Getty It is set to cap the amount that can be deducted from an individual's benefits payments each month to pay housing costs, short-term loans and debts. Currently, ongoing rent costs and arrears are processed and deducted automatically by the DWP's system through the existing Alternative Payment Arrangement. It covers a range of payments from benefit advances, historical over-payments of child tax credits, rent, council tax, as well as outstanding water and utility bills. The money is taken out of a claimant's Universal Credit standard allowance without notice each month, until the debt is fully repaid. Advertisement However, a court ruling earlier in the year deemed the practice unlawful as many impacted were struggling, which came on top of the government's cuts to the winter fuel allowance. By dropping the Fair Repayment Rate from 25 per cent to 15 per cent, around 1.2 million households among the poorest around the UK are expected to benefit. A boost of around £35 a month or up to £420 a year could be claimed by households, including 700,000 with children. 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. Universal Credit deductions of over 25 per cent will remain if they are related to fraud penalties or sanctions. Advertisement TYPES OF UNIVERSAL CREDIT DEDUCTIONS There are a number of reasons money is deducted from Universal Credit allowances by the DWP to help pay of debts. Five key changes to PIP & Universal Credit as Labour's benefits crackdown unveiled Benefits expert at Turn2us, Conor Lawlord, said: "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." Advertisement Not every deduction is compulsory, however, with some voluntary. There are six main forms of deductions: 1. ADVANCE PAYMENTS Some Universal Credit claimants may apply for an advance payment when first signing up. Advertisement This is due to the delay in payment after starting a claim and being assessed for Universal Credit, known as the "five-week wait". The first payment usually comes a week after the end of your first assessment, but those in particularly financial hardship cannot afford to wait this long. Individuals struggling to pay for rent or food are therefore given an advance loan, which is expected to be paid back either within 24 months for a new claim, of six months in the case of a changing in circumstances. 2. BUDGET ADVANCE Advertisement The Budget Advance is an interest-free loan that can be used to cover certain expenses for things like household furniture, equipment and clothing. The smallest amount that can be borrowed is £100, which changes dependent on circumstances and how much you need. You can get up to: £348 if you're single £464 if you're part of a couple £812 if you have children Repayments for budget loans are taken automatically from benefits, and the amount you repay is based on income. Advertisement They should normally be repaid within a year, but is extendable by 18 months in exceptional circumstances. 3. UNIVERSAL CREDIT OVERPAYMENTS Overpayments accrue if you have been paid more Universal Credit than entitled to. They generally have to repaid, even if the overpayment was not your fault. Advertisement Repayments are typically deducted at a maximum rate of 15 per cent from the monthly standard allowance if not receiving earned income. The maximum rate that can be deducted from Universal Credit for overpayments with some earned income is 25 per cent. 4. TAX CREDIT OVERPAYMENTS HMRC will be told to stop tax credits if you claim Universal Credit. Advertisement Therefore, if you receive tax credits after having made a Universal Credit claim, you would be overpaid in tax credits. Any tax credit over-payments will subsequently be taken out of Universal Credit payments. 5. FRAUD AND SANCTIONS Deliberately not providing details about a change in circumstances for Universal Credit payments or giving false information is considered fraud. Advertisement A fraud penalty or sanction will reduce your Universal Credit standard allowance. This can be up to 100 per cent of your standard allowance if you are single, or up to 50 per cent 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 Advertisement A third-party deduction is an amount taken from Universal Credit allowance and paid directly to a person or organisation who you owe money to. They can be taken without permission, to pay for things like housing costs, unpaid rates, or child maintenance, as well as to landlords or electricity suppliers. Only three third-party dedcations can be taken at a time. They are fixed at five per cent of the Universal Credit standard allowance. Advertisement Rent deductions are fixed between 10 and 20 per cent. 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) - 0800 144 8848 (England) / 0800 702 2020 (Wales) StepChange - 0800138 1111 - 0800138 1111 National Debtline - 0808 808 4000 - 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.
The Sun
29-04-2025
- Business
- The Sun
Over a million families on Universal Credit to get £420 boost TOMORROW – check if you get the benefit
UNIVERSAL Credit claimants will get a £420 increase in benefits payments from tomorrow as changes are introduced. The Department for Work and Pensions (DWP) has announced a change to the Fair Repayment Rate to come into effect April 30. 2 It is set to cap the amount that can be deducted from an individual's benefits payments each month to pay housing costs, short-term loans and debts. Currently, ongoing rent costs and arrears are processed and deducted automatically by the DWP's system through the existing Alternative Payment Arrangement. It covers a range of payments from benefit advances, historical over-payments of child tax credits, rent, council tax, as well as outstanding water and utility bills. The money is taken out of a claimant's Universal Credit standard allowance without notice each month, until the debt is fully repaid. However, a court ruling earlier in the year deemed the practice unlawful as many impacted were struggling, which came on top of the government's cuts to the winter fuel allowance. By dropping the Fair Repayment Rate from 25 per cent to 15 per cent, around 1.2 million households among the poorest around the UK are expected to benefit. A boost of around £35 a month or up to £420 a year could be claimed by households, including 700,000 with children. 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. Universal Credit deductions of over 25 per cent will remain if they are related to fraud penalties or sanctions. TYPES OF UNIVERSAL CREDIT DEDUCTIONS There are a number of reasons money is deducted from Universal Credit allowances by the DWP to help pay of debts. Five key changes to PIP & Universal Credit as Labour's benefits crackdown unveiled Benefits expert at Turn2us, Conor Lawlord, said: "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." Not every deduction is compulsory, however, with some voluntary. There are six main forms of deductions: 1. ADVANCE PAYMENTS Some Universal Credit claimants may apply for an advance payment when first signing up. This is due to the delay in payment after starting a claim and being assessed for Universal Credit, known as the "five-week wait". The first payment usually comes a week after the end of your first assessment, but those in particularly financial hardship cannot afford to wait this long. Individuals struggling to pay for rent or food are therefore given an advance loan, which is expected to be paid back either within 24 months for a new claim, of six months in the case of a changing in circumstances. 2. BUDGET ADVANCE The Budget Advance is an interest-free loan that can be used to cover certain expenses for things like household furniture, equipment and clothing. The smallest amount that can be borrowed is £100, which changes dependent on circumstances and how much you need. You can get up to: £348 if you're single £464 if you're part of a couple £812 if you have children Repayments for budget loans are taken automatically from benefits, and the amount you repay is based on income. They should normally be repaid within a year, but is extendable by 18 months in exceptional circumstances. 3. UNIVERSAL CREDIT OVERPAYMENTS Overpayments accrue if you have been paid more Universal Credit than entitled to. They generally have to repaid, even if the overpayment was not your fault. Repayments are typically deducted at a maximum rate of 15 per cent from the monthly standard allowance if not receiving earned income. The maximum rate that can be deducted from Universal Credit for overpayments with some earned income is 25 per cent. 4. TAX CREDIT OVERPAYMENTS HMRC will be told to stop tax credits if you claim Universal Credit. Therefore, if you receive tax credits after having made a Universal Credit claim, you would be overpaid in tax credits. Any tax credit over-payments will subsequently be taken out of Universal Credit payments. 5. FRAUD AND SANCTIONS Deliberately not providing details about a change in circumstances for Universal Credit payments or giving false information is considered fraud. A fraud penalty or sanction will reduce your Universal Credit standard allowance. This can be up to 100 per cent of your standard allowance if you are single, or up to 50 per cent 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 taken from Universal Credit allowance and paid directly to a person or organisation who you owe money to. They can be taken without permission, to pay for things like housing costs, unpaid rates, or child maintenance, as well as to landlords or electricity suppliers. Only three third-party dedcations can be taken at a time. They are fixed at five per cent of the Universal Credit standard allowance. Rent deductions are fixed between 10 and 20 per cent. 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. 2
Scottish Sun
28-04-2025
- Business
- Scottish Sun
Major DWP update with 400,000 urged to look for letters ahead of HUGE benefit axe
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) HUNDREDS of thousands of households currently receiving a benefit, which is soon to be axed, are being urged to keep an eye out for important letters. The warning comes as the government progresses with its plans to transfer all legacy benefit claimants onto Universal Credit, through a process referred to as "managed migration." 1 The DWP is now ramping up the number of migration notices sent each month to 83,000, The Sun can reveal Credit: Alamy The managed migration process officially began back in July 2022 after a successful pilot in July 2019. Since then, households receiving one of five legacy benefits, have been receiving postal notifications outlining the steps required to transition to Universal Credit. Upon receiving a migration letter, claimants are given up to three months to make the switch. Failure to act within this timeframe could result in the loss of existing benefits. The Department for Work and Pensions (DWP) has already closed new claims for four legacy benefits - tax credits, income support, income-based jobseeker's allowance, and housing benefit. Households still receiving income-related employment and support allowance (ESA) are now being urged to make the move to Universal Credit. ESA provides financial support for those unable to work due to illness or disability. Initially, the government planned to transfer all ESA claimants to Universal Credit by the end of 2028. However, this deadline has since been brought forward to March 2026. However, this deadline was brought forward to March 2026. Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence To date, 200,000 claimants have successfully transitioned to Universal Credit, leaving approximately 400,000 still to make the switch. However, the DWP is now ramping up the number of migration notices sent each month to 83,000, The Sun can reveal. This stepped-up approach means the DWP aims to have contacted all remaining legacy ESA claimants by September 2025 The move is designed to provide households with sufficient time to successfully transition to Universal Credit before the March 2026 deadline. A WORD OF WARNING Between July 2022 and December 2024, the Department for Work and Pensions (DWP) sent almost 1.6million migration notices. However, according to the DWP's latest figures, 355,940 individuals lost their benefits after failing to act on migration notices received between the period. That's why it's vital to act on your migration notice before the deadline stated in your letter. Some 1.1million individuals have since made successful claims for Universal Credit, and another 174,576 are still in the process of transitioning, the latest figures show. Which benefits are stopping? UNIVERSAL Credit is replacing six benefits under the old welfare system, commonly called legacy benefits. They are: Working tax credit Child tax credit Income-based jobseeker's allowance Income support income-related employment and support allowance Housing benefit If you're on any of these benefits now, you can choose to move over - but you might not be better off. You should consider carefully what moving over means for your money, as you can't move back once you're on Universal Credit. Using an online benefits calculator, which is free and easy to use from charities such as Turn2Us and EntitledTo, can help you compare. You may be moved to Universal Credit if your circumstances change, such as moving home, changing your working hours, or having a baby. But eventually, everyone will be moved over to Universal Credit under the managed migration process. HELP CLAIMING UNIVERSAL CREDIT As well as benefit calculators, anyone moving from Tax Credits to Universal Credit can find help in a number of ways. You can visit your local Jobcentre by searching at There's also a free service called Help to Claim from Citizen's Advice: England: 0800 144 8 444 Scotland: 0800 023 2581 Wales: 08000 241 220 You can also get help online from advisers at
