Changes to Universal Credit will provide an extra £420 a year support for those struggling to get by.
The Government has issued an update on its plans to reduce the cap on Universal Credit repayments, meaning the maximum amount that can be deducted from your standard allowance will fall.
In response to a written question in Parliament, work and pensions minister, Alison McGovern, said: “We are introducing a Fair Repayment Rate for deductions made from a Universal Credit award, allowing customers to prioritise their most severe third-party debts and retain more of their benefit award to budget for essentials.
“Reducing the cap to 15 percent will benefit 1.2 million households by £420 per annum on average.”
This is down from the current 25 percent cap, with the changes coming into effect from next April, when benefit payments including Universal Credit will increase 1.7 percent.
With the pay increase, the monthly standard allowance amounts for Universal Credit will increase to:
- Single under 25 – £316.98
- Single 25 and over – £400.14
- Couple joint claimants both under 25 – £497.55
- Couple joint claimants both 25 and over – £628.10
This means with the new 15 percent cap, monthly repayments will be limited to:
- Single under 25 – £47.55
- Single 25 and over – £60.03
- Couple joint claimants both under 25 – £74.64
- Couple joint claimants both 25 and over – £94.22
DWP claimants were also recently alerted they could get a potential increase to their pay worth £2,400 a year.
This relates to additional payments you can get through Universal Credit and Pension Credit, if you claim Carer’s Allowance.
Work and pensions minister, Sir Stephen Timms, said: “These benefits can be paid to carers at a higher rate than those without caring responsibilities through the carer element and the additional amount for carers respectively.”
With a Universal Credit claim, you can get an extra £198.31 a month if you care for someone who receives a health- or disability-related benefit, adding up to £2,379.72 a year.
Pension Credit claimants can get an extra £45.60 a week if they care for another adult and in certain circumstances if they get Carer’s Allowance or Carer Support Payment. This would increase a claim by £2,371.20 a year.
