The latest figures from the Office of National Statistics (ONS) figures show that between December and February, Scotland's unemployment rate was 3.5% - down 0.1% from the previous quarter and 0.2% from the same period two years ago.
Total employment fell by 0.3% to 74.7% - a drop of 0.6% since before the coronavirus pandemic. Early estimates also suggest that median monthly pay for payrolled employees has increased by almost 10% since before the pandemic, but fell slightly in the past month.
However, more than 1.3 million people in work could be missing out on Universal Credit payments of up to £7,300 a year, according to recent data from the New Economics Foundation.
The number of people across Scotland and the rest of the UK now eligible for the benefit has skyrocketed thanks to a rule change announced in the Autumn Budget and implemented by the Department for Work and Pensions (DWP) at the end of November.
James Andrews, Senior Personal Finance Editor at money.co.uk, said: “In November, Rishi Sunak slashed the Universal Credit taper rate, the mechanism that sees your benefits reduced or withdrawn as your earnings rise.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 explained: “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.”
The change to both rules means that people can now make more money each month without losing any of their benefits payments, and will lose less of any money they earn above the work allowance.
James 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 several online benefits calculators which can help you find out if you could be entitled to extra financial support from the DWP.
These are completely independent, impartial and confidential and should give you an indication of whether or not you should make a claim within a few minutes - all you need to do is answer a series of questions about your living and work circumstances.
If you are eligible, monthly payments from the DWP will vary between £334.91 (for single people over 25) and £525.72 (if you are over 25 and claiming as a couple) - additional payments may made if you have children or a disability. .
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
New claimants may not be entitled to the full benefit amount, but they could be eligible for elements of it, including a Council Tax Reduction or help paying rent.
It could also help top-up wages for those on a low income.
In the past, people on a low-income would apply for Working Tax Credits, however, this is a legacy benefit which is gradually being phased out as claimants migrate to Universal Credit.
How to claim Universal Credit
The UK Government states that a person may be able to get Universal Credit if:
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You are on a low-income or out of work
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You are 18 or over (there are some exceptions if you’re 16 to 17)
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You are under State Pension age (or your partner is)
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You and your partner have £16,000 or less in savings between you
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You live in the UK
If you live with your partner, their income and savings will be taken into account, even if they are not eligible for Universal Credit.
It is worth noting that you won't be able to get any of the means-tested benefits if your capital and savings amount to more than the upper limit of £16,000.
These include:
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Universal Credit
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Income-related Employment and Support Allowance
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Income-based Jobseeker's Allowance
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Income Support
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Housing Benefit
However, your savings and capital (or your partner’s savings, capital and income) are not taken into account when claiming ‘New Style’ Jobseeker's Allowance (JSA) and this particular benefit can be obtained at the same time as Universal Credit - or on its own.
‘New Style’ JSA is a contribution-based benefit. This means you may be able to get it if you’ve paid enough National Insurance (NI) contributions in the two full tax years before the year you’re claiming in.
It is paid fortnightly and if you qualify, you can get 'New Style' JSA for up to 182 days.
If you qualify for both ‘New Style’ JSA and Universal Credit, any ‘New Style’ JSA you receive will be taken into account as income for Universal Credit.
To make a claim for Universal Credit, visit the gov.uk website here and for more information on claiming Jobseeker's Allowance, read more here.
Universal Credit rates for 2022/23 (monthly rates shown)
Standard allowance
Single
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Single under 25: £265.31
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Single 25 or over: £334.91
Couple
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Joint claimants both under 25: £416.45
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Joint claimants, one or both 25 or over: £525.72
What happens if you have a job?
There is no limit to how many hours you can work while claiming Universal Credit, but only people on a low income are eligible, and this threshold depends on individual circumstances.
The amount a working person receives is dependent on how much they earn.
It reduces as someone earns more - for each £1 a claimant earns in their job, their payment will reduce by 55p, with the aim being that their payments will gradually reduce until they are financially independent.
That is, unless the person is eligible for a Work Allowance, which includes those who have responsibility for a child and those whose working ability is affected by a disability or health condition.
In these circumstances, they will be able to earn up to a set amount without their benefits being affected.
The set amount is £335 per month for people who already have extra help to cover housing costs, and £557 per month for people who do not.
For anything they earn above that amount, the £1 to 55p rule will 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:
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Your bank, building society or credit union account details
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An email address
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Information about your housing, for example how much rent you pay
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Details of your income, for example payslips
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Details of savings and any investments, like shares or a property that you rent out
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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:
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Driving licence
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Passport
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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:
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What benefits you could get
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How to claim
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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:
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Savings
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Income, including your partner’s
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Existing benefits and pensions (including anyone living with you)
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Outgoings (such as rent, mortgage, childcare payments)
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Council Tax bill
For more information about Universal Credit, visit the GOV.UK website here.
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