The Department for Work and Pensions (DWP) has announced a number of upcoming developments happening in the run-up to Christmas this year.
The DWP has issued five key updates to benefits coming into force ahead of the big day this year, reports the Liverpool Echo. The changes may impact payments, and how much money people will receive.
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.
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Listed below is each of the five changes, and the key pieces of information to know about them.
Benefits switching
Currently, the UK Government is moving those on 'legacy benefits' onto Universal Credit. There is approximately 2.6 million people on these benefits according to reports.
However, they are all set to be moved by the end of 2024. People are now 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 has also claimed 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 UK households are due to receive the second cost of living payment from the Government, worth £324. This will be paid 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.
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
Those on certain benefits will automatically be paid a Christmas bonus, regardless of any other support they receive. This should be paid automatically, so those who are eligible don't need apply for it.
The payment is a one-off, tax-free payment of £10, which should show up as 'DWP XB’ on a 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 also be fast-tracked for certain benefits if they are are diagnosed with a terminal illness, and if they have been diagnosed with 12 months to live.
This 12 month rule is already in force for Universal Credit and Employment and Support Allowance (ESA), but it has now been 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 rules for those claiming Universal Credit have come into force this year, which will see approximately 114,000 people moved from the “light touch” work group to “intensive work search”.
Under the new change, 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.
This 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 rate of AET has increased £355 a month to £494 a month, or from £567 a month to £782 a month for joint claims, from September 26.
This rate is the equivalent of someone working 12 hours per week, or a couple working 19 hours per week between them, the Government has 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 encouraged 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 DWP.
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