Universal Credit payments increased by £20 a week during the coronavirus pandemic and as a result of this cut academic modelling estimates an additional 1,500 children a year will be plunged into poverty and as a result, removed from their families. Unemployment hit a five-year high in 2020 meaning more families than ever turned to Universal Credit as a safety net.
The Universal Credit uplift will shortly come to an end with Business Secretary Kwasi Kwarteng warning many households could face “a very difficult winter”.
The temporary £20 increase was first introduced in response to the coronavirus pandemic.
The scheme is due to officially end on October 6 – just a few days after the furlough scheme comes to an end.
The exact date recipients will stop being paid will vary depending on the day one usually receives their payments.
Will Universal Credit get another boost?
Despite calls to extend the uplift, Universal Credit claimants will lose the extra £20 next week.
Mayor of London, Sadiq Khan has criticised the Government for this saying: “The Government’s decision to increase Universal Credit and Working Tax credits enabled many Londoners to make ends meet during this incredibly challenging period.
“Cutting this support now would have a devastating impact on hundreds of thousands of Londoners, on top of the forthcoming rise in fuel bills.
“With so much talk about ‘levelling up’, we must not forget that our capital has some of the most deprived communities anywhere in the UK and ending the uplift will hit many Londoners hard.
“I urge Ministers to do the right thing – to not only retain the uplift, but go further and remove the benefit cap to help cut poverty in London and across the country.”
Unfortunately for those bidding farewell to the extra funds, there have been no indications of another boost.
However, Britons who are currently claiming UC could be entitled to an extra £67 a month when they reach 25.
People who are single and under 25 receive the least amount of help – a monthly allowance of £344.
But this increases by £65 when they reach 25-years-old and they will start to receive £411.51 when they reach this age even though their cost of living has not increased.
This rise in payment amounts is the same for couples who are claiming the benefit, if a couple is under 25 they would receive £490.60 for both of them.
What will you receive once the uplift ends?
The standard allowance per month will change from October 6 and the rates will be as follows:
- Single under 25: £257.33 (from £344)
- Single 25 or over: £324.84 (from £411.51)
- Joint claimants both under 25: £403.93 (from £490.60)
- Joint claimants, one or both 25 or over: £509.91 (from £596.58).