There are a number of important developments occurring in the run-up to Christmas for benefits claimants.
The Department of Work and Pensions (DWP) has issued five key updates and changes coming into force ahead of Christmas this year. The changes could impact payments and how much money people receive, so they are important to be aware of.
The updates include cost of living support grants, tougher work search rules and fast track rules. The changes will affect those on Universal Credit and other DWP benefits, reported Lincolnshire Live.
READ MORE: DWP could means-test PIP, Attendance Allowance and other disability benefits
We've outlined each change and development below and the key pieces of information to know about them.
Benefits switching
At the moment, the government is moving people currently on 'legacy benefits' onto Universal Credit. There are said to be around 2.6 million people still on the older benefits, but all are set to be moved by the end of 2024.
According to the Express, people are being sent letters telling them when they need to claim Universal Credit by. Not everyone will have to make the switch by Christmas - as the DWP has until the end of 2024 to complete the switchover.
The DWP claims that many people will be better off on Universal Credit. People can use the government's benefits calculator on GOV.UK to prepare themselves and to see if they would be better off on Universal Credit. They will need details of:
- Income - including any earnings or benefits
- Rent and living costs
- Savings and investments.
Second cost of living payment
Millions of households across the country are due to receive the second half of the government's cost of living support package, worth £324, between November 8 until November 23. The first half of the £650 fund went out earlier this year, worth £326.
The second instalment is set to land into the bank accounts of most eligible people before Christmas. Obviously this cash is meant to help with the cost of living, not Christmas, but it will be a welcome help in what can be an expensive time of year.
People who qualify for the payment include those who receive any of the following between August 26 and September 25, 2022:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
Christmas bonuses
People on certain benefits will also be automatically given a Christmas bonus, regardless of any other support they may be receiving. This should be paid automatically, so those who are eligible don't need apply for it.
It is a one-off, tax-free payment of £10, which may show up as ‘DWP XB’ on one’s bank statement. To qualify for the payment, you must get at least one of the following benefits in the week the bonus is paid out:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Disability Payment
- Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
- Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
- Disability Living Allowance
- Incapacity Benefit at the long-term rate
- Industrial Death Benefit (for widows or widowers)
- Mobility Supplement
- Pension Credit - the guarantee element
- Personal Independence Payment (PIP)
- State Pension (including Graduated Retirement Benefit)
- Severe Disablement Allowance (transitionally protected)
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- War Disablement Pension at State Pension age
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
New fast track rules
People will be fast-tracked for certain benefits if they are diagnosed with a terminal illness and if they have been diagnosed with 12 months to live. While this 12 month rule is already in force for Universal Credit and Employment and Support Allowance (ESA), it is being extended to Personal Independence Payment, Disability Living Allowance and Attendance Allowance claimants.
The new landmark legislation - part of the Social Security (Special Rules for End of Life) Bill - was given Royal Assent by King Charles III last week. The new rules mean people who are thought to be in the final year of their life will be able to receive fast-tracked access to the specified benefits, six months earlier than they were able to previously.
Tougher work search rules
Tougher work search rules for those claiming Universal Credit have come into force (as of Sept 26), which will see roughly 114,000 people moved from the “light touch” work group to “intensive work search”. Under the new rules, claimants now need to have more meetings with work coaches and either increase the amount of hours they spend working or spend more time looking for jobs.
The change is linked to the Administration Earnings Threshold (AET) - which is a monthly amount that marks if you're in the "intensive work search" category or the "light touch" group. The AET rate has increased from £355 a month to £494 a month, or from £567 a month to £782 a month for joint claims, from September 26.
This is the equivalent of an individual working 12 hours per week, or a couple working 19 hours per week between them, the Government said. If your income is above the AET rates, you will be in the "light touch" work group - but if you earn below these amounts, you will be in the "intensive work search" group.
This could mean you may be pressured into finding better-paid work or taking on more hours in your existing job, in order to keep your Universal Credit. Exactly how many more hours you will be expected to take on will vary depending on your circumstances. You can find these details in your “claimant commitment”.
If you fail to meet the targets set in your “claimant commitment” then you could have your benefits stopped. How many hours you are required to spend looking for work depends on your circumstances, including childcare commitments and any health conditions. Those affected by the change will be contacted by the Department for Work and Pensions.
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