Universal Credit claimants have not seen an increase in their payments as yet - here's why.
New rates for almost all state benefits came into effect in April, after Chancellor Jeremy Hunt announced a 10.1% boost in his Autumn Statement. The rise applies to payments including Universal Credit, Jobseeker's Allowance (JSA), Employment and Support Allowance (ESA), Personal Independence Payment (PIP), Carer's Allowance and the State Pension.
The new financial year starts on April 6 with benefit rises traditionally coming in on the following Monday, which this year was April 10. But people on Universal Credit say they have yet to see any change in their payments, reports BirminghamLive.
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With rent and other costs increasing, it is important to know when Universal Credit payments will rise to cover the additional household spending. Here's an explanation of the DWP rules.
Why has my Universal Credit not gone up?
Universal Credit is paid in arrears after a previous four-week assessment period when the DWP looks at a person's financial situation, including any wages or savings, to see how much benefit they'll get. The DWP statement for every Universal Credit payment should state the assessment period it is based on.
Any assessment period that started before the April 10 rise will mean the Universal Credit coming from that is still paid out at the old rate for 2022-2023. Claimants need a full assessment period that starts after April 10 in order to see the new rates in their next Universal Credit payment.
It means people on Universal Credit won't see the benefit increase take effect until May or June. In fact, May 16 will be the earliest payment date to have the new rates applied.
So, assessment periods starting on or after April 10 up to April 25 will see their Universal Credit increase in May, and assessment periods starting on or after April 26 will see the increase in June.
What about other benefits?
Other benefits, also paid in arrears, are worked out on weekly rates, but paid out fortnightly or monthly. For instance, Personal Independence Payment (PIP) is paid every four weeks and Employment and Support Allowance (ESA) every two weeks.
So people will see a mix of old and new rates for any payment period that started before April 10. When they have a full period of two or four weeks that has started after April 10, all of their next payment will be at the new rate.
For instance, a PIP payment due on April 24 will include two weeks at the old rate and two weeks at the new rate as it covers four weeks from March 27, with just two of those after the new rise took effect. Their next payment on May 22 will all be at the new rate.
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