Universal Credit is a payment made to millions each month, to help with living costs for those on a low income. The payment replaces individual benefits like Child Tax Credit and Jobseeker’s Allowance, instead of giving one payment to include all the benefits you are eligible for. Now some claimants may be getting a boost to their October handout.
Some who claim Universal Credit will be eligible for an increase of up to £405 per month from October 8.
Claimants could get £120, £285 or £405 with their next Universal Credit payment if they qualify.
This increase has been brought in to plug the gap between the old benefits system and Universal Credit.
Thousands found themselves on less when switched to Universal Credit, affecting people who need Income Support, Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), Housing Benefit or Pension Credit.
These claimants were affected if they were also receiving a top-up allowance called Severe Disability Premium (SDP).
Justin Tomlinson, minister of state at the DWP, confirmed the payment change to MPs last week.
He said: “On July 22, 2019, we laid legislation to provide additional financial support for former SDP recipients who had moved to Universal Credit on account of a change of circumstances.
“The UC (Managed Migration Pilot and Miscellaneous Amendments) Regulations 2019 provide for the conversion of these transitional payments into transitional elements.
£285 a month for claimants not in the Universal Credit limited capability for work-related activity (LCWRA) group (roughly the equivalent of the lower rate SDP at £65.85 a week)
£285 a month for joint claimants who were being paid the lower couple rate SDP and are not receiving the LCWRA component in Universal Credit
£405 a month for joint claimants who were getting the higher couple rate SDP in their existing benefits
Ken Butler, Welfare Rights and policy adviser at Disability Rights UK, said: “Over 13,000 disabled people who previously received SDP have lost this on moving to Universal Credit.
“While the introduction of these compensation payments is really good news, it’s important to remember that the Government has had to be forced to provide them only because of a significant legal judgement.
“The High Court ruled in May 2019 that the Government’s UC migration arrangements for those who previously received the SDP and moved onto Universal Credit before January 16, 2019, were unlawful.
“And the compensation payments will not help those who meet the SDP eligibility criteria only after their move to Universal Credit.
“The Government should introduction a disability element to UC itself to replace the disability premiums that have been cut from the UC system.”