The new rulings will automatically force ineligible people to make extra effort to secure more work.
What is universal credit?
Universal credit is a social security payment for low-income, working people. Over 5.8 million people in England, Wales, and Scotland claim Universal Credit. The system was introduced to substitute various benefits for low-paid and unemployed people. In short, the aim behind the system was to make it simple.
Out of these 5.8 million, about 40 percent have jobs.
Credit payment depends on various factors such as unmarried/single, married, and age.
- A single claimant under the age of 25 gets £265.31/month
- A single claimant 25 or above gets £334.91/month
- Joint claimants under the age of 25 get £416.45/month
- Joint claimants 25 and above get £525.72/month
- Some people may be eligible for extra money if they have children.
What is the eligibility to get Universal Credit?
According to the UK government website, the eligible person can be anyone with a low income or needing help with living costs. He or she:
- Is out of work
- Working part-time
- Not working due to health condition
- For claiming the UC, a person should be:
- Residing in the UK
- Must be 18 or above (some exceptions for people aged 16-17)
- Under the State Pension age
- Having money less than £16,000 in savings or investments
- The new rule states that claimants working up to 15 hours a week at minimum wage will have to find some other work that is better paid. One can use a benefits calculator to determine the total number of benefits.
- How much extra money claimants received during the pandemic?
During the Covid-19 pandemic, the claimants got £20 extra a week.
- How much time does it take to receive the first payment?
From the date of the claim to the payment, the whole process can take up to five weeks. However, it is also possible to get an advance loan.
Disclaimer Statement: This content is authored by an external agency. The views expressed here are those of the respective authors/entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.