Four key changes are set to have an impact on the 5.6million people who claim Universal Credit, with the first coming on July 6. Claimants will need to be aware of some of the new rules to ensure they don't lose the benefits, reports The Mirror.
Changes to how much you earn before you start paying National Insurance (NI) come into force from July 6. The threshold for when you start to pay NI will rise from £9,880 to £12,570.
But if you're paying less tax and therefore getting more money in your take-home pay, this could affect your Universal Credit. If you're in work, the amount of Universal Credit you get reduces as you earn more.
At the moment, the taper rate - how much your benefit is reduced by - is set at 55p for every £1 you earn. Some people are entitled to a work allowance, which means they can earn more before the taper rate comes in.
This means that from July 6, if you're in work and claim Universal Credit you could see a drop in the amount of benefit you get - but an increase in the amount of pay in your pay packet. Effectively, for every extra £1 you take home, 55p of Universal Credit will be taken away.
Then from July 14, people will start to see an extra one-off £650 payment appearing. The cash, which will come in two instalments, is being handed out by the Government to help cover the cost of rising energy bills.
Those who claim Universal Credit, income-related ESA and JSA, Income Support, and Pension Credit will receive £326 from July 14. The second £324 payment is expected to be sent to eligible households in autumn. These payments are not taxable and will not affect the benefits or tax credits you get.
The third change comes on November 30. If you get your Universal Credit paid into a Post Office card account, you'll need to set up another payment method to receive your money.
The Department for Work and Pensions (DWP) will no longer make payments into these accounts from November 30. If you already have an existing bank account, you can update DWP with your details - otherwise you can choose to open one.
For those who aren't able to open a bank account, you'll be able to use the Payment Exception Service. The Payment Exception Service allows those who don’t have a bank account to access benefit payments via the PayPoint network.
You can withdraw your cash either by using a payment card, voucher by email, or text message containing a unique reference number. Either of these methods must be presented at a PayPoint outlet, which are in shops and newsagents, in order to access your benefits.
The fourth change means Universal Credit claimants will have to work longer hours or meet with their work coach under new rules due to come into force. Currently anyone working nine hours or more does not need to attend regular appointments at the Job Centre.
This is set to rise to 12 hours, the government has confirmed - although no set date has been confirmed. Work and pensions minister Therese Coffey said in an interview with the Telegraph the change will come in "soon".
She said: “Once you get a job, if you’re working fewer than the equivalent of nine hours a week, we still expect you to be coming in and looking for work. We’re going to be raising that, I hope, very soon."
