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Universal Credit warning: Millions set to have income slashed if benefit cuts go ahead | Personal Finance | Finance

Universal Credit is a living support payment providing help to those on a low income or who have found themselves out of work. It has been of particular value to many families who have been affected by the COVID-19 crisis over the recent months. Understanding the increased financial strain faced by many, Universal Credit underwent two upratings this April.

But the proportional fall increases dependent on a person’s circumstances.

The research stated that a childless, non-disabled, single owner-occupier with no source of income, the drop in benefits would be 21 percent.

If the government makes the increase permanent, it could add about 10 percent to the long-run cost of Universal Credit. 

Tom Waters, a senior research economist at IFS and an author of the report said: “Even in its optimistic scenario, the OBR thinks that the hit to the labour market from the COVID crisis will increase benefit spending by £17billion this year, and that’s before you account for the £9billion of temporary welfare measures the government has brought in.

Older singletons are entitled to a total of £409.89 per month.

People who are in a couple where both are under 25 are allocated £488.59 to share, and where either person in a couple is over 25, the sum rises to £594.04 to split between them. 

Further amounts are available to people with children, a health condition or disability, or those who need help with rent. 

A DWP spokesperson responded to the report to saying: “This government is wholly committed to supporting the lowest paid families and has already taken significant steps including raising the living wage, ending the benefit freeze and increasing work incentives.

“During this challenging time have provided £9.3 billion extra welfare support to help those most in need, as well as introducing income protection schemes, mortgage holidays and additional support for renters and constantly keep these measures under review.”

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