MILLIONS of households receiving Universal Credit and benefits will face several major payment changes this year.
Jeremy Hunt announced several major changes for those claiming support in his recent Spring Budget.
GettyHere’s a full list of the six major major Universal Credit and benefit changes coming this year[/caption]
It’s vital to take note of how your new rules could soon affect your payment so that you don’t fall short.
The move means that some could see their Universal Credit payments cut while others will benefit.
Payments are still set to rise in line with September’s rate of inflation.
All claimants will get a 10.1% payment boost later on in April.
Here’s an explanation of six major changes and how they’ll affect your claims for Universal Credit and legacy benefits.
1. Benefits to rise – April
Benefits and the state pension will increase in line with September’s inflation rate of 10.1% from April 2023.
The move is set to cost the government £11billion in 2023-24, but will help 10million working families, according to estimates.
It’ll boost the payments for the average family on Universal Credit by £600 a year, although the exact amount will vary between households.
For example, the standard allowance for single individuals under 25, will rise from £265.31 to £292.11 a month.
While joint claimants where one or both are 25 or over will see monthly payments increase from £525.72 to £578.82.
Meanwhile, pension credit claimants will get an extra £960 a year and the state pension will increase by up to £870 a year.
You can check the full list of benefits increasing from April 2023 and by how much in our guide.
2. Benefits cap to rise – April
The benefit cap will also be raised by 10.1% from April 2023, in line with September’s CPI.
This is so that more households will see their payments increase as a result of uprating.
The benefit cap is a limit on the total amount of benefit you can get.
It applies to most people aged 16 or over who have not reached state pension age.
The cap will be raised from £20,000 to £22,020 for families nationally and from £23,000 to £25,323 in Greater London.
While for single adults it will be raised from £13,400 to £14,753 nationally and from £15,410 to £16,967 in Greater London.
The benefit cap affects:
Universal CreditBereavement AllowanceChild BenefitChild Tax CreditEmployment and Support AllowanceHousing BenefitIncapacity BenefitIncome SupportJobseeker’s AllowanceMaternity AllowanceSevere Disablement AllowanceWidowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before 9 April 2001)
3. Changes to payment dates – Easter
Thousands of people claiming Universal Credit could see a change to their payments within weeks.
Bank holidays over Easter may mean that you might see cash hit your bank account before your usual payment date.
The Government has confirmed that benefit payments due to land in accounts on Friday, April 7 and Monday, April 9 will be made early.
So if your payment is due on any of the dates between April 7 and April 10, you should expect to be paid the Thursday before, on April 6.
This will be adjusted automatically, so there’s no need to do anything.
If your payment falls outside of these dates, you shouldn’t expect any changes at all.
This is because everybody’s usual payment date depends on when you first applied and when your application for benefits was approved – so there is no set day for everyone.
Usually, you receive your first payment seven days after the end of your initial assessment period.
If you don’t receive your benefit payment one working day before the bank holiday, you should contact DWP directly.
You can also submit a complaint to them to get a problem sorted if your payment is wrong.
4. Changes to childcare allowance – Summer
The Chancellor’s “back to work” Budget has further been used to encourage more than 700,000 parents on Universal Credit to get a job or raise their hours with new measures.
Mr Hunt is introducing sweeping childcare changes to help mums and dads go to work.
Currently, parents on Universal Credit can claim back 85% of their childcare costs – but they have to pay upfront first.
It means parents may have to find more than £1,000 for a month’s nursery care in advance before getting any support.
But childcare payments will soon be paid upfront rather than in arrears in a big win for the Sun’s Make Universal Credit Work campaign.
And the childcare allowance for claimants will be hiked from £646 a month for a single child to £950, and from £1,108 for two children to £1,630.
The hike comes alongside a huge £4billion childcare giveaway that will hand parents 30 free hours a week for one and two-year-olds.
It expands the existing 30 hours scheme for working parents of three and four-year-olds.
5. Extra cost of living payments – from April
The Autumn Statement also confirmed millions of people on benefits and Universal Credit will get a one-off £900 cost of living payment.
Plus, pensioners will get £300 and there will be another £150 disability payment.
The means-tested payment of £900 will specifically go to Brits who claim one of the benefits below.
Income-based Jobseeker’s AllowanceIncome-related Employment and Support AllowanceIncome SupportPension CreditTax Credits (Child Tax Credit and Working Tax Credit)Housing BenefitCouncil Tax SupportSocial Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)Universal Credit
It’s not yet confirmed when these payments will go out, but Martin Lewis has predicted it to happen in September or October 2023.
The second £150 payment for disability benefit claimants will work similarly to the first one.
It’s will go specifically to Brits who claim a qualifying disability benefit from either the Ministry of Defence or the Department for Work and Pensions.
6. Changes to work rules and sanctions – 2023/24
Over 100,000 Universal Credit claimants will have to step up their search for work or face having their benefits cut.
The Chancellor announced plans to raise the minimum amount they must work before having to engage with government jobs coaches.
The Administrative Earnings Threshold will rise from 15 to 18 hours per week.
It means anyone currently working fewer than 18 hours will have fresh requirements to meet with DWP officials to find more work.
And if they do not they risk having their benefits cut.
The government has also confirmed that it is strengthening the application of the Universal Credit sanctions regime.
This includes additional training for Jobcentre work coaches to ensure they are applying sanctions effectively, including for claimants who do not look for or take up employment.
It also includes automating administrative elements of the sanctions process, including sending automated messages to claimants who fail to meet their work coach and take active steps to move into work or increase their earnings.
The exact date on which the new rules will come into force hasn’t been confirmed but is expected to happen in the 2023/24 financial year.
What other changes are planned?
It is expected that in 2026, disabled Brits will be lured back into work with a plan that will promise they will not lose their benefits.
The plan which is under consultation will the burdensome work capability assessment will be scrapped so they do not have to jump through hoops to get health benefits.
Currently, people must complete a work capability assessment if they bail out of the job, which can take weeks.
It’s used to decide whether or not you are fit for work if you launch a claim or are already claiming employment and support allowance (ESA) and Universal Credit with a disability allowance.
Customers have to fill in a questionnaire and attend a medical assessment before a decision is made.
Scrapping the assessment will mean that disabled people can try to work without fear of losing their benefits, and it will reduce the number of assessments needed to qualify for health-related benefits.