New data from the Office for National Statistics (ONS) has revealed that between December and February, the unemployment rate in Scotland was 3.5%.
This is a drop of 0.1% as compared with the previous quarter, and a fall of 0.2% from two years ago.
Meanwhile, the total employment rate dropped by 0.3% to 74.7% — a fall of 0.6% from before covid.
READ MORE — DWP reveals Easter benefit payment dates for Universal Credit, PIP and more
As reported by the Daily Record, it is estimated that median monthly pay for workers on a payroll has risen by nearly 10% since before the pandemic, though dropped slightly over the last month.
However, over 1.3 million workers may be missing out on up to £7,300 per year in Universal Credit according to research by the New Economics Foundation.
Due to a Department for Work and Pensions (DWP) rule change implemented last November, the number of people eligible to receive the benefit has soared.
Senior Personal Finance Editor at money.co.uk James Andrews stated: “In November, Rishi Sunak slashed the Universal Credit taper rate, the mechanism that sees your benefits reduced or withdrawn as your earnings rise.
"As a result, thousands of people who previously earned too much to be able to claim benefits now qualify for the benefit.”
He continued: “To be exact, the taper relief was changed so that rather than lose 63 pence of benefits for every extra pound earned, you now only lose 55 pence. It means you can earn hundreds more before your benefits are reduced to £0.
“On top of this, the work allowance - which is how much you can earn before the taper rate applies - has gone up by £500 a year. Under the new rules, a single parent with two children and rental bills of £750, could earn up to £52,000 a year and still qualify, compared to £44,500 previously.”
Because of the rule changes, people are able to earn more money per month without losing access to any of their benefits — and will also lose less money earned above the work allowance.
Andrews added: “With millions of people seeing their essential bills rise, the Universal Credit rule changes should not be ignored as a way of getting hold of some extra cash to help make ends meet.”
There are a number of online tools that can help determine whether you are eligible for financial aid from the DWP.
These calculators are confidential and independent, and within minutes can give you an idea of whether you may be entitled to benefits
People who are eligible for Universal Credit will receive between £334.91 and £525.72 every four weeks, depending on whether they are single or claiming as a couple — and may receive additional payments if they have children or are disabled.
For more information about what Universal Credit is and how it works, visit the GOV.UK website here.
What you need to know about Universal Credit
While new claimants might not be eligible to receive the highest amount, they may be entitled to elements of it — such as a Council Tax reduction.
For those on a low income, the benefit can also provide a much-needed financial top-up
Previously, those on a low income would claim Working Tax Credits, but this is a legacy benefit that is slowly being replaced by Universal Credit.
How to claim Universal Credit
The UK Government states that a person may be able to get Universal Credit if:
You are on a low-income or out of work
You are 18 or over (there are some exceptions if you’re 16 to 17)
You are under State Pension age (or your partner is)
You and your partner have £16,000 or less in savings between you
You live in the UK
For claimants living with a partner, their income and savings will be considered even if they are not eligible for the benefit.
Important to note is that you will not be entitled to any means-tested benefit if your capital and savings are £16,000 or higher.
These include:
Universal Credit
Income-related Employment and Support Allowance
Income-based Jobseeker's Allowance
Income Support
Housing Benefit
Your savings and capital — as well as your partner's — are not considered when making a claim for New Style’ Jobseeker's Allowance (JSA), though, which can be claimed either alongside Universal Credit or on its own.
This benefit is contribution-based, meaning you will be eligible if you have paid enough National Insurance (NI) contributions in the two years prior to making a claim.
'New Style' JSA is paid every two weeks and if you qualify, you can get 'New Style' JSA for up to 182 days.
For those who are eligible for both ‘New Style’ JSA and Universal Credit, any money received through the former will be considered as income.
To make a claim for Universal Credit, visit the gov.uk website here.
Universal Credit rates for 2022/23 (monthly rates shown)
Standard allowance
Single
Single under 25: £265.31
Single 25 or over: £334.91
Couple
Joint claimants both under 25: £416.45
Joint claimants, one or both 25 or over: £525.72
What happens if you have a job?
It does not matter how many hours you work when making a claim for Universal Credit, but only those on a low income are entitled to the benefit — and this threshold depends on individual circumstances.
The amount of Universal Credit a working claimant receives depends on how much they make, and will lower if they earn more.
For every £1 a claimant earns working, the amount they receive through the benefit will be lowered by 55p — with the aim being that their payments will gradually reduce until they are financially independent.
This does not include people eligible for Work Allowance, such as those responsible for a child or whose ability to work is impacted by a disability or a long-term health condition.
In this situation, the claimant will be able to earn up to a set limit before their benefits are impacted.
The limit is £335 a month for those who already receive aid to help with housing costs, and £557 for people who don't
Above these limits, the £1 to 55p rule will again apply.
Housing costs
You could get money to help pay your housing costs. How much you get depends on your age and circumstances, but the payment can cover rent and some service charges.
If you’re a homeowner, you might be able to get a loan to help with interest payments on your mortgage or other loans you’ve taken out for your home.
What documents you need to apply for Universal Credit
You will need:
Your bank, building society or credit union account details
An email address
Information about your housing, for example how much rent you pay
Details of your income, for example payslips
Details of savings and any investments, like shares or a property that you rent out
Details of how much you pay for childcare if you’re applying for help with childcare costs
If you don't provide the right information when you apply it might affect when you get paid or how much you get.
Verifying your identity online
You will need some proof of identity for this, for example your:
Driving licence
Passport
Debit or credit card
To make a claim for Universal Credit, visit the gov.uk website here
Benefit Calculators
You can also use an independent benefits calculator to find out:
What benefits you could get
How to claim
How your benefits will be affected if you start work
These calculators are free to use, anonymous, and could indicate benefits you're missing out on.
Where to find help
Advice Direct Scotland
This new online tool is the first to fully integrate devolved benefits, including the new Scottish Child Payment.
It provides a free and impartial assessment of entitlement to a range of benefits such as Universal Credit, crisis grants and support payments.
Turn2us
Information on income-related benefits, Tax Credits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work or change your working hours
Policy in Practice
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit, how these are calculated and how your benefits will be affected if you start work or change your working hours
entitledto
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work
What you will need
You will need accurate information about your:
Savings
Income, including your partner’s
Existing benefits and pensions (including anyone living with you)
Outgoings (such as rent, mortgage, childcare payments)
Council Tax bill
