MILLIONS of people are eligible for Universal Credit but hundreds of thousands are not yet claiming it.
You will qualify can even if you're in work and are on a low income.
The amount of cash you'll get through Universal Credit will depend on your current circumstances.
It's estimated that 1.255million could be eligible for awards of £9,600 on average, according to Policy in Practice.
Universal Credit is a welfare scheme combining a number of old-style "legacy benefits" into a single monthly payment.
It means you receive one payment instead a number of small amounts from different benefits.
However, Universal Credit can be paid to you twice monthly in some circumstances, including if you live in Scotland.
Universal Credit calculators
TRYING to work out how much Universal Credit you can get can be overwhelming.
There are so many different elements that can affect your claim that it makes the whole process even more complicated.
There are a number of free calculators that you can use to help you get an estimate, such as Gov.uk, Citizen's Advice, MoneySavingExpert, StepChange and Turn2Us.
You will need:
- Details of all your income, such as existing benefits, tax credits, earnings from employment and your pensions,
- Details of your partner's income if you're married, in a civil partnership or living with someone as a couple. You will be assessed as a couple'
- Information on any savings you have,
- How much you pay in Council Tax per year and whether you get any discounts, reductions or exemptions,
- Details of your rent or mortgage payments,
- Employment and income information about anyone else living with you, such as grown-up children,
- Details about your Carer's Allowance if you receive it.
You need to make sure that the information is as accurate as possible so that you can get the truest estimate.
The benefit is designed to help people get back into work, but the more you work the more your benefits will be impacted.
This is because Universal Credit is subject to the taper rate, which means that for every £1 you earn over a certain allowance, 55p is deducted from your payments.
The rate was reduced from 63p in the Autumn Budget of October 2021 and was a victory for the Sun's campaign to make Universal Credit work.
How much Universal Credit can I get?
Your individual circumstances will affect how much Universal Credit you receive such as how many children you have, your earnings, and how many people you reside with.
But it's also affected by the benefit cap, which limits the amount of welfare you can get.
The benefit cap outside Greater London is:
- £423.46 per week (£1,835 per month) if you’re in a couple or if you're a single parent and your children live with you
- £283.71 per week (£1,229 per month) if you’re a single adult
The benefit cap inside Greater London is:
- £486.98 per week (£2,110 per month) if you’re in a couple or if you're a single parent and your children live with you
- £326.26 per week (£1,413 per month) if you’re a single adult
How much Universal Credit will I get if I earn £1,000 a month?
Depending on your circumstances you could be eligible for up to £368.74 a month through the standard allowance if you're over 25 and single.
But the exact amount you'll get will depend on your circumstances.
For example, if you earn £1,000 a month and are renting a property that costs £750 a month you'll qualify for £334 in Universal Credit payments.
This is calculated from the inclusion of a £369 standard allowance and a £515 housing element.
But as if you don't qualify for a work allowance (given to those with kids or a limited capability of work), your Universal Credit payment will be reduced by 55p for every £1 you earn.
So in total, your Universal Credit payments will be reduced by £550 and you'll only be eligible for a £334 monthly payment.
You can check how much you could get by using a benefits calculator online.
How is my Universal Credit calculated?
The Department for Work and Pensions works out how much your household is entitled but this could be affected by deductions or sanctions.
If you live with your partner then their circumstances will also be taken into account.
Everyone who is accepted on Universal Credit will be entitled to a Standard Allowance:
- Single and aged under 25: £292.11 per month
- Single and aged 25 or over: £368.74 per month
- Joint claimants both aged under 25: £458.51 per month
- Joint claimants where one is aged 25 or over: £578.82 per month
Once your household allowance is calculated, the DWP will take into account any additional claim elements such as children, housing, or disabilities.
Child element
If your child is under the age of 16 then you can be entitled to:
- £314 per month for a first or only child born before 6 April 2017
- £269.58 per month per child in all other circumstances
You can only claim this element for a maximum of two children unless you have twins or you've adopted.
If your child has a disability you may also be entitled to:
- £146.32 per month per child receiving DLA or PIP
- £456.89 per month per child if they qualify for the highest rate of the Disability Living Allowance (DLA) care component, enhanced rate of PIP for daily living, or are registered blind.
Childcare costs element
Working parents can claim up to 85% of childcare costs, up to a maximum of £646.35 a month for one child, or £1,108.04 a month for two or more children.
They also currently have to pay the costs of sending their child to nursery or with a childminder upfront.
But in the Spring Budget, Chancellor Jeremy Hunt announced the maximum rates will go up to £951 and £1,630 respectively from summer 2023.
Meanwhile, the Government will start paying parents on Universal Credit claiming the childcare cost element up front instead of in arrears this summer.
Housing costs element
Universal Credit can help you pay your rent, or part of it, as well as some service charges.
The amount you get depends on whether you're a private or social tenant.
Private tenants
The amount is calculated on the Local Housing Allowance where you reside, which determines rental prices in the area for the number of rooms you need.
For example, a single person without children will be able to claim the average cost of renting a one-bedroom flat in the area.
Social housing tenants
Your benefit is calculated based on your eligible rent, which takes into account the number of rooms you actually need.
You're allowed one bedroom for each adult couple, each person over 16, two children of the same sex under 16, two children under 10 regardless of gender, any other child, and an overnight carer who doesn't live with you full time.
If you have more bedrooms than you need then your eligible rent is reduced by 14% for one spare or 15% for two or more spares.
If your household has no other income or savings then you'll receive the full amount that you're entitled to.
Carer element
Those caring for a severely disabled person for at least 35 hours a week will get £185.86 a month.
If you're making a joint claim you can both receive the carers element but not if you're caring for the same person.
Can I work while on Universal Credit?
The government says that the flagship welfare system has been designed to help people get back into work.
This means you can work as many hours as you want while claiming benefits but it may reduce the amount you get.
This is because your wages will be subject to the taper rate: for every £1 you earn, your Universal Credit payment will go down 55p.
If you've got a job and a child who is dependent on you or you can't work due to an illness then you might be entitled to a work allowance.
This is the amount you can earn every month before the taper rate kicks in.
If you get help with your housing costs then this will be set at £379, or £631 if you don't.
If you don't get a work allowance then all of your salary is subject to the taper rate.
What else can lower my Universal Credit payments?
Any other income that you have that isn't work or benefit-related, such as a pension, will see £1 taken from your Universal Credit payment for every £1 of income.
If you have savings when applying for Universal Credit, they may also lower your payments.
Your payment is also subject to deductions, meaning you could receive less than you're entitled to.
This could be due to you needing to repay an advance or budgeting loan or you've previously been overpaid tax credits.
Reductions could also be because you've fallen behind on your rent, council tax or energy bills.
The deductions would then go directly to your landlord or housing association, the council or your energy provider to help pay off the debt.
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