The Chancellor has today announced the £20 per week uplift payment to Universal Credit claimants, (which was previously announced at the start of the pandemic in March 2020), is set to continue to be paid for another six months.
The £20 per week increase was originally intended to be a temporary 12 months measure to support families on benefits and is worth £1,040 per year.
Whilst the 6 months extension is a welcome announcement today and it has been described as a lifeline to many struggling families, many feel it does not go far enough and leaves uncertainty for the difficult months ahead when it will be withdrawn in the Autumn of 2021.
The extra £20 per week is paid to all Universal Credit claimants regardless of what elements they are eligible for.
The effects of the pandemic have seen an increase in the number of people applying for Universal Credit. The number of people claiming was 2.8million in January 2020 but the last 12 months has seen a staggering increase, with 6million claiming the benefit as at January 2021.
In a similar measure, the Chancellor also announced that current Working Tax Credits claimants would receive an equivalent one off payment of £500, intended to cover the same six month period. Due to significant operational differences in the way the two systems work, this payment will be made as a one off lump sum to people who are currently in receipt of Working Tax Credits.
It is not possible to claim both Universal Credit and Working Tax Credit at the same time. A new application for Universal Credit will terminate any existing claim for Working/Child Tax Credits that the applicant has in place. It is no longer possible to make a new claim to receive Tax Credits. Consideration and advice should be sought to ensure you are claiming under the most favourable system depending on your circumstances as the two systems are significantly different.
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