MILLIONS claiming Universal Credit and benefits could see their payments change after the Chancellor delivered his Spring Budget.
Jeremy Hunt announced several major changes for those claiming support.
PAHere’s an explanation of the nine major changes to Universal Credit and benefits coming this year[/caption]
The move means that some could see their Universal Credit payments cut while others will benefit.
Although 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.
It comes as:
Spring Budget at a glance
Millions of households will save £160 after the Energy Price guarantee was extendedCigarette prices will rise after the government hiked tobacco taxDrivers won’t pay more for fuel as duty was frozen and a 5p cut will continue in a huge win for The Sun’s campaign to keep it lowThe lifetime allowance on pensions will be axed and the annual allowance will increaseThe government will give councils £500m to fix potholesMillions of energy customers on prepayment meters will no longer pay moreJeremy Hunt unveiled 12 low-tax investment zones across the countryAlcohol duty on beer in pubs will be cut, saving 11p per pint – but tax on wine and spirits will increaseThe Chancellor confirmed that benefits will rise next monthCorporation tax will rise to 25% next monthThe government will extend free childcare to 30 hours for one and two-year-oldsWorking parents on Universal Credit will get more for childcare and costs covered straight away
Here’s an explanation of what’s changing and how it’ll affect your claims for Universal Credit and legacy benefits.
1. Changes to work requirements
Over 100,000 Universal Credit claimants will have to step up their search for work or face having their benefits cut, Jeremy Hunt confirmed today.
The Chancellor announced plans to raise the minimum amount they must work before having to engage with government jobs coaches.
He is raising this “administrative earnings threshold” 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.
2. Work capability assessment scrapped
Disabled Brits will be lured back into work with a plan that will promise they will not lose their benefits.
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.
Jeremy Hunt said in his Spring Budget: “Today we publish a White Paper on disability benefits reform. It is the biggest change to our welfare system in a decade.
“It will abolish the work capability assessment in Great Britain and separate benefit entitlement from an individual’s ability to work.
“As a result, disabled benefit claimants will always be able to seek work without fear of losing financial support.”
3. Strengthening Universal Credit sanctions
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.
Jeremey Hunt said in his Spring Budget: “Sanctions will be applied more rigorously to those who fail to meet strict work-search requirements or choose not to take up a reasonable job offer.”
4. Changes to childcare allowance
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. Payments boost from April
Universal Credit and benefit payments are rising from April 10.
But the dates they will rise for you vary depending on the type of benefit and when you normally get paid.
For example, if you normally get paid your Universal Credit on the fourth of every month, you won’t see the pay boost until May 4.
Payments will rise in line with September’s inflation rate of 10.1% in April.
The increase is designed to help people keep up with rising prices.
The following benefits will increase in April:
Universal CreditHousing benefitPension creditAttendance allowanceCarer’s allowanceDisability living allowanceEmployment and support allowanceJob seekers allowanceMaternity, paternity, adoption and shared paternal payIncome supportState pension
We’ve previously explained how much these benefit payments will rise by in April.
6. New programme for disabled people
The government will introduce a new supported employment programme for disabled people and those with long-term health conditions in England and Wales.
The Universal Support scheme will match participants with open market jobs and funding support and training.
The Chancellor said: “This is a new, voluntary employment scheme for disabled people where the government will spend up to £4,000 per person to help them find appropriate jobs and put in place the support they need.
“The fund will fund 50,000 places every single year.”
7. Expansion of the individual placement and support scheme
The government will expand the individual placement and support scheme (IPS) scheme in England which supports people with severe mental illness into employment.
The Chancellor said: “We should give them support before they end up leaving their job, so I am also announcing a £400million plan to increase the availability of mental health and musculoskeletal resources and expand the Individual Placement and Support scheme.
“And because occupational health provided by employers has a key role to play, I will also bring forward two new consultations on how to improve its availability and double the funding for the small company subsidy pilot.”
8. Qualifying care relief increase
The government is increasing the amount of income tax relief available to foster carers and shared life carers (adult placement care, kinship care, staying put care, and parent and child arrangement).
The threshold of income at which qualifying carers begin paying tax on care income will be increased to £18,140 per year plus £375-450 per person cared for per week for 2023-24 and these levels will then be index-linked.
The Chancellor also said: “I will also increase the funding we provide to the Staying Close programme by 50% to help more care leavers into employment.”
9. Extra support for those with educational needs
The government has also announced support for young people with special educational needs and disabilities
It will launch a £3million pilot expansion of the Department for Education’s supported internship programme to help them transition from education into the workplace.
This is there to help young people who do not have an education health and care plan.