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Liverpool Echo
Liverpool Echo
National
David Bentley & Wesley Holmes

People on Universal Credit still waiting for pay increase one month after rates were raised

People claimining Universal Credit may be dismayed to find their payments have not increased despite new rates being introduced in the face of soaring living costs.

The Department for Work and Pensions (DWP) has warned many claimants will not see their Universal Credit improved until this month or possibly next month due to the way claims are processed, Chronicle Live reports.

Chancellor Jeremy Hunt announced a 10.1% boost in his Autumn Statement, meaning new rates were due to come in on April 1, with Universal Credit, Jobseeker's Allowance (JSA), Employment and Support Allowance (ESA), Personal Independence Payment (PIP), Carer's Allowance and the State Pension all being impacted by the rise.

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The delay in the UC update is due to the way it is paid, based on a four-week assessment period when the DWP looks at a person's financial situation, including any wages or savings, to determine how much money they will get.

Any assessment period that started before the April 10 rise will mean the UC 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 UC payment.

This means people on UC won't see the benefit increase take effect until May or June - with May 16 being the earliest payment date to have the new rates applied.

Assessment periods starting on or after April 10 up to April 25 will see their UC increase in May, and assessment periods starting on or after April 26 will see the increase in June.

Other benefits 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.

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