A very quick post and a reminder of the proposed reduction of Universal Credit.
At the beginning of the Covid-19 lockdown in 2020, the government introduced a temporary increase of £20 per week for people receiving universal credit and working tax credits. The reason for this was to support those already struggling through a tough time financially because of the pandemic. It was expected to end in April 2021, but in the spring Budget the Chancellor Rishi Sunak had extended the increase until September.
It is estimated that more than 6.2 million families will be impacted by the payment cut, according to Joseph Rowntree Foundation. Another half a million – including 200,000 children will be pushed into poverty. The impact will affect single parents, BAME families and households. Two third of families claiming universal credit are single parent families, according to Save the Children, around 90 per cent of these are women, meaning the impact of cutting the benefit by £20 a week will hit single parent households. Despite this the reduction is still going ahead
When does the Universal Credit £20 uplift end?
The scheme officially ends on October 6th this year, but the exact date will vary depending on the day you usually receive universal credit.
How much Universal Credit will I lose?
The reduction of £20 a week means that you will lose £1,040 less in your payments over a year.
What does it mean for everyone in real terms?
Below are the current rates for the 2021-22 tax year for the standard allowance both before and after the cut:
For those single and aged under 25, the monthly payment from April 2021 to
September 2021 is £344 - from October 2021 to March 2022 that will reduce to the sum of
£257.33
For those single and aged 25 or over, the monthly payment from April 2021 to
September 2021 is £411.51 - from October 2021 to March 2022 that will reduce to the sum of
£324.84
For a couple both under 25, the monthly payment from April 2021 to September
2021 is £490.60 for both) - from October 2021 to March 2022 this will reduce to the sum of
£403.93
For a couple where one or both are 25 or over, the monthly payment from April
2021 to September 2021 is £596.58 (for both) - from October 2021 to March 2022 this will
reduce to the sum of £509.91
You should receive a warning about the cut via your Universal Credit journals and online statements, and letters will go out to the most vulnerable claimants.
If you will struggle/or are struggling to repay ay debts or bills, please don’t ignore the situation contact the Creditors, and let them know that you will be unable to maintain the repayment arrangements complete an income and expenditure form send this to your creditors with your reduced repayment amount. Don’t ignore your creditors remember you don’t make contact your creditors will continue to take action against you, this could mean a County Court judgment or Bailiff’s action.
There is lots of free support/resources available at: