UNIVERSAL Credit claimants and those on other benefits will see the money they get rise this April.
New rates for the main benefit as well as Jobseekers Allowance, Personal Independent Payment and State Pension will come in at the start of the new tax year.
Benefit payments increased in April 2020 for the first rise in six years, increasing by 1.7% after an end to the benefit freeze.
And this year, many benefits will rise again when the new tax year starts on April 6 2021.
The amounts do not include a temporary boost of £20 a week which Universal Credit claimants have received because of the coronavirus crisis.
There have been calls for this lifeline to continue beyond April when it is due to end – and an announcement on its future is expected during Chancellor Rishi Sunak's Budget on March 3.
If it's not extended then people will get less than they have in 2020, despite the basic amounts increasing.
Six million people are currently claiming Universal Credit and experts have warned they face mounting debts as the coronavirus crisis continues.
Universal Credit payments increasing in April
In April 2021, Universal Credit payments will rise as follows for the 2021/2022 financial year.
How much you're entitled to depends on your individual circumstances, including your age, whether you have any disability and if you have children or are a carer.
Standard allowance (per month)
- For those single and aged under 25, the standard allowance will rise from £256.05 to £257.33 (this is lower than the 2020 amount of £342.72, which includes the coronavirus boost)
- For those single and aged 25 or over, the standard allowance will rise from £323.22 to £324.84 (this is lower than the 2020 amount of £409.89, which includes the coronavirus boost)
- For joint claimants both under 25, the standard allowance will rise from £401.92 to £403.93 (this is is lower than the 2020 amount of£488.59, which includes the coronavirus boost)
- For joint claimants where one or both are 25 or over, the standard allowance will rise from £507.37 to £509.91 (this is lower than the 2020 amount of £594.04, which includes the coronavirus boost)
Extra amounts for children
- For those with a first child born before April 6, 2017, the extra amount is going up from £281.25 to £282.50
- For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is going up from £235.83 to £237.08
- For those with a disabled child, the lower rate addition payment is going up from £128.25 to £128.89 and the higher rate from £400.29 to £402.12
Extra amounts for limited capability for work
- For those deemed to have limited capability for work, the extra amount is going up from £128.25 to £128.89
- For those deemed to have limited capability for work or work-related activity, the extra amount is going up from £341.92 to £343.63
Extra amounts for being a carer
Universal Credit claimants can get an additional amount if you're caring for a severely disabled person for at least 35 hours a week.
The amount you get a month will rise from £162.92 to £163.73.
Increased work allowance
- The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £512 to £515
- The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £292 to £293
What to do if you have problems claiming Universal Credit
IF you’re experiencing trouble applying for your Universal Credit, or the payments just don’t cover costs, here are your options:
- Apply for an advance – Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it's a loan which means the repayments will be automatically deducted from your future Universal Credit payout.
- Alternative Payment Arrangements – If you're falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you're part of a couple.
- Budgeting Advance – You may be able to get help from the Government for emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.
- Cut your Council Tax – You might be able to get a discount on your Council Tax by applying for a Council Tax Reduction. Alternatively, you might be entitled to Discretionary Housing Payments to help cover your rent.
- Foodbanks – If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the Trussell Trust website.
Changes to housing cost contributions in April
Non-dependants’ housing cost contributions are going up from £75.15 to £75.53.
These contributions are deductions taken from your Universal Credit housing element for adults who live with you on an informal basis.
For example, this could be a relative who doesn't pay rent.
In most cases, the DWP expects a non-dependant adult household member to contribute to your rent.
Other deductions going up in April
Amounts can be taken out of your Universal Credit to pay back debt in council tax, energy or water bills, rent, court fines, compensation orders, or child maintenance.
For third party deductions where 5% of the standard allowance is taken, the amount is going up as follows:
- For those who are single and under 25, the deduction is going up from £12.80 to £12.87
- For those who are single and aged 25 or over, the deduction is going up from £16.16 to £16.24
- For joint claimants both under 25, the deduction is going up from £20.10 to £20.20
- For joint claimants where one or both are 25 or over, the deduction is going up from £25.37 to £25.50
For deductions to repay rent and service charges where a minimum 10% of the standard allowance is taken up to a maximum of 20%, the amounts are going up as follows:
- For those who are single and under 25, the minimum deduction is going up from £25.61 to £25.73 and the maximum deduction is going up from £51.21 to £51.47
- For those who are single and aged 25 or over, the minimum deduction is going up from £32.32 to £32.48 and the maximum deduction is going up from £64.64 to £64.97
- For joint claimants both under 25, the minimum deduction is going up from £40.19 to £40.39 and the maximum deduction is going up from £80.38 to £80.79
- For joint claimants where one or both are 25 or over, the minimum deduction is going up from £50.74 to £50.99 and the maximum deduction is going up from to £101.47 to £101.98
Fraud overpayments, recoverable hardship payments and administrative penalties will go up as follows (30% of the standard allowance):
- For those who are single and under 25, the amount deducted is going up from £76.82 to £77.20
- For those who are single and aged 25 or over, the amount deducted is going up from £96.97 to £97.45
- For joint claimants both under 25, the amount deducted is going up from £120.58 to £121.18
- For joint claimants where one or both are 25 or over, the amount deducted is going up from £152.21 to £152.97
For other overpayments, and civil penalties, the amounts taken will go up as follows (15% of the standard allowance)
- For those who are single and under 25, the amount deducted is going up from £38.41 to £38.60
- For those who are single and aged 25 or over, the amount deducted is going up from £48.48 to £48.73
- For joint claimants both under 25, the amount deducted is going up from £60.29 to £60.59
- For joint claimants where one or both are 25 or over, the amount deducted is going up from £76.11 to £76.49
The Sun wants to Make Universal Credit Work
UNIVERSAL Credit replaces six benefits with a single monthly payment.
By the time the system is fully rolled out in 2023, nearly 7million will be on it.
But there are big problems with the flagship system – it takes five weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.
And while working families can claim back up to 85% of their childcare costs, they must find the money to pay for childcare upfront – we’ve heard of families waiting up to six months for the money.
Working parents across the country told us they’ve been unable to take on more hours – or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.
It’s time to Make Universal Credit work. Since December 2018, we've been calling for the government to:
- Get paid faster: The government must slash the time Brits wait for their first Universal Credit payments from five to two weeks, helping stop millions from being pushed into debt.
- Keep more of what you earn: The work allowance should be increased and the taper rate should be slashed from from 63p to 50p, helping at least 4million families.
- Don’t get punished for having a family: Parents should get the 85% of the money they can claim for childcare upfront instead of being paid in arrears.
Together, these changes will help Make Universal Credit Work.
Join our Universal Credit Facebook group or email [email protected] to share your story.
Other benefits going up in April
Those still claiming benefits from the old system – known as legacy benefits – will also get more money.
Legacy benefits include job seeker's allowance, employment and support allowance, income support and housing benefit.
You can’t make a new claim for these benefits anymore, but many people who haven’t yet moved to Universal Credit are still claiming them.
Here are the other benefits increasing from April 6 2021 and the weekly amounts for each.
- Attendance Allowance higher rate rises to £89.60 (from £89.15), lower rate rises to £60.00 (from £59.70)
- Carers Allowance rises to £67.60 (from £67.25)
- Disability Living Allowance care component highest amount rises to £89.60 (from £89.15), the middle amount rises to £60.00 (from £59.70) and the lowest amount goes up to £23.70 (from £23.60)
- Disability Living Allowance mobility component higher amount rises to £62.55 (from £62.25) and the lower amount goes up to £23.70 (from £23.60)
- Employment and Support Allowance for under 25s goes up to £59.20 (from £58.90 and for those aged 25 and over, rises to £74.70 (from £74.35).
- Housing benefit rises to £59.20 (from £58.90) for under 25s and to £74.70 (from £74.35) for 25s and over, while those entitled to main phase ESA will get £74.70 (up from £74.35).
- Incapacity Benefit (long-term) rises to £114.70 (from £114.15).
- Contributions-based Jobseekers Allowance rises from £59.20 (from £58.90) for under 25s and to £74.70 (from £74.35 for those 25 and over.
- Income-based Jobseekers Allowance rises to £59.20(from £58.90) for under 25s and to £74.70 (from £74.35) for those 25 and over.
- Maternity, paternity and shared parental pay is rising to £151.97 (from £151.20).
- Pension Credit is rising to £177.10 (from £173.75).
- Personal Independence Payment (PIP) daily living component is rising to £89.60 (from £89.15) for enhanced and £60 (from £59.70) for standard.
- Personal Independence Payment mobility component is rising to £62.55 (from £62.25) for enhanced and to £23.70 (from £23.60) for standard.
- State Pension is rising to £122.55 (from £121.95).
- Statutory Parental Bereavement Pay will go up to £151.97 (from £151.20).
- Statutory Sick Pay standard rate will go up to £96.35 (from £95.85).
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