Universal Credit

[Somebodyimportant1]

Hello all, please can someone explain what it is the government is saying/planning to do about universal credit? Are they stopping the extra money or what? 🤷🏽‍♀️🙄

Yep they are still planning to cut the rates as they have published the new April 2021 rates which shows the Reduction.

Nobody knows yet. Press speculation. Frankly I don't think they can take it away before the schools go back in September - and that's if they do.

Latest reports are that the Government would prefer to remove the £20 a week uplift after the beginning of April, but are aware of the significant pressures to keep it. So the Government is thinking up compromise positions like halving it - e.g. offering a one off grant of £500.

Much more politicking to come.

Part of the problem is that people on the old benefit system ( ESA, JSA, Income support ) did not get that rise, the uplift was only on working tax credits and universal credit. So if the uplift isn't scrapped they are going to have to make it fair to that huge group of people on those meagre benefits also. I'm actually surprised that there hasn't already been more of an uproar about those groups not getting extra for the past year. The aim of the uplift was to soften the blow for those furloughed or seeing a reduction in earnings but it also helped huge numbers of people on UC who don't work and the ones on the old benefits missed out. Maybe the uplift has encouraged some people to move onto Uc from these groups which may be an advantage to the government seeing as they are trying to move everyone onto UC anyway.
My worry is that many people who have only recently started claiming UC will have no idea that the standard element they get is £80 a month higher then it usually is, so will not be expecting a drop. I honestly don't see how they can take it away?

I know, @Babyroobs - that £20 a week is basically gas and electric bills. Imagine taking that away?

And/or it pays towards the broadband bill, essential for home schooling while schools are shut.

Or fills that crappy gap between one's actual housing allowance and the actual rent charged by the landlord, thus staving off eviction of a family ...

I know I am blessed to live in a country with a safety net. I really do, so call me naive, but when I lost my job in April I stupidly lived on my savings for months until I ran out, then was SHOCKED at how little UC was. And then further shocked to discover that it should be £80 less!!! I took out the 'Advance' and my award is already reduced by £50. Unless I use my rent money or refuse to pay my utilities I can't see how I will manage. As it is I cannot afford the medicine I buy privately or my vitamins - which I really need - no medicines no health. I thought the food banks were for people who didn't manage properly. Now I get it.

Well I have a roof at least!

@CatherineOfAragonsPomegranate

I know I am blessed to live in a country with a safety net. I really do, so call me naive, but when I lost my job in April I stupidly lived on my savings for months until I ran out, then was SHOCKED at how little UC was. And then further shocked to discover that it should be £80 less!!! I took out the 'Advance' and my award is already reduced by £50. Unless I use my rent money or refuse to pay my utilities I can't see how I will manage. As it is I cannot afford the medicine I buy privately or my vitamins - which I really need - no medicines no health. I thought the food banks were for people who didn't manage properly. Now I get it.

Well I have a roof at least!

It is a pittance for people with no earnings, but for people with children who get a work allowance ( an amount that is disregarded before earnings reduce Uc ), it isn't too bad. The work allowance makes a big difference. For people with no children on the claim or whose rent is more than the rent element that Uc pays, it is not so great.

@2021sunshine

Yep they are still planning to cut the rates as they have published the new April 2021 rates which shows the Reduction.

Where are the rates published?

I fall into the latter category so it makes sense if the average person gets more, than the £80 seems more like a sort of boon, especially from a govt point of view.

No they are voting on it . probably as we speak

www.gov.uk/government/publications/benefit-and-pension-rates-2021-to-2022/benefit-and-pension-rates-2021-to-2022

Notice the 2020 rates don’t show the covid increase.

Yet you can see the covid increase on these.

www.gov.uk/government/publications/benefit-and-pension-rates-2020-to-2021/benefit-and-pension-rates-2020-to-2021#universal-credit

Quick google.

They applied a covid uplift to Universal Credit of about £80pcm last year. So UC rates the year previously were much lower. Benefits are generally only increased by a few pounds a week each year if at all (rates were frozen for a few years up until recently).

So the uplift was inky ever meant to be temporary. The government now wants to take the uplift away from April so rates are similar to previous rates (and roughly as much as they would have been had covid never happened).

However as benefit rates are (due to either no increases or below inflation increases previously) below subsistence level this will have a big impact on claimants and various charities are therefore calling on the government to keep the uplift in place.

I believe however that it costs £9 billion though so I suspect the government are highly likely to remove it, if not in April but when the pandemic starts to get under control and they want people to move back into work.

Guardian reporting now £6 billion per annum. Half of that is apparently due to the new pandemic-era claimants since late March 2020.

@Cornishtiger interesting. Either way a lot more people will be needing extra help right now. I think it’s only fair to extend it until the pandemic is over.

I agree. The scary thing like a previous poster said is many claimants don’t realise there is a temp uplift.

The benefit rates were poor increases year on year. They need to keep the uplift and align the legacy benefits.

I can’t see them doing anything apart from a token £500 bonus if they are tomorrow lucky. Which will sound great on front of Daily Mail. However if you lose your job the next week you get nothing and the lower rate. If you get a job will you have to pay some of it back as it’s meant to cover the extra for 6months?

I’m on old benefits so have had no increase despite more costs. There needs to be more of a revamp of the actually basics cost. You would have thought millions of people suddenly losing income would have some sympathy. It does no ones job prospects any good when they can’t afford pay their rent, heat their homes and not live with crippling stress and debt.

Marking my spot for information

When it was introduced it was always stayed it was temporary whilst Covid is very high. It is in place until April 5th. We are only mid January now and the pandemic is fast moving. We are vaccinating quickly now. By the end of March who knows how many people will have been vaccinated and how much of economy will have reopened. Personally I always thought once it was introduced people would become dependent on it and it would be hard for government to revert back to rate prior to pandemic. Maybe reduce it over three months do up to April 5th £20 per week. Then £10 per week until end of May then back to original rate from beginning of June depending on pandemic under control by then and far more vaccinated.

I'm actually surprised that there hasn't already been more of an uproar about those groups not getting extra for the past year.

It is nuts. The press are proper ignoring us. Plus the government. I suspect because a lot of the people on legacy benefits are disabled. £20 a week extra would make a huge difference to my household right now and yet still wouldn't touch the sides of what covid is costing me extra compared to previous years.

I’m on old benefits so have had no increase despite more costs. There needs to be more of a revamp of the actually basics cost. You would have thought millions of people suddenly losing income would have some sympathy. It does no ones job prospects any good when they can’t afford pay their rent, heat their homes and not live with crippling stress and debt.

This.

Alternatively make it fairer by giving all of the people on benefits £10 instead of those on U C and CTC £20 and others none. Pensioners are getting uplift this April but only about £3.50 a week. Seems unfair some get £20, others will get about £3.50 and others none at all.

I’m on old benefits so have had no increase

What old benefits? Working tax got the increase too.

Citizens advice bureau are campaigning hard for the uplift to be kept as the amount of families that would pushed into poverty if it was removed is shocking

@SnickersnotMArs

I’m on old benefits so have had no increase

What old benefits? Working tax got the increase too.

People on ESA and JSA and income support would have got no increase. Only working families on wtc and everyone on universal credit.