Coronavirus is having a devastating impact on the global economy, but the UK Government has stepped in to reduce the strain on individuals’ finances. As well as the State Pension, National Minimum and Living Wage, and Working Tax Credit being raised, the Chancellor of the Exchequer Rishi Sunak has announced Universal Credit will be increased. But how much will Universal Credit be increased by? Express.co.uk has the answer.
What is Universal Credit?
Universal Credit is paid monthly to those who need help covering living costs.
It is a system replacing six legacy benefits, including Child Tax Credit, Housing Benefit and Income Support.
Hundreds of thousands of Britons have applied for Universal Credit in the last few weeks due to the financial impact of coronavirus.
If you are on a low income or unable to work, you may be entitled to Universal Credit.
Find out if you are eligible here.
If you have savings of more than £16,000, you may be excluded from applying.
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Universal Credit Increase
The standard Universal Credit allowance will increase by £1,000 a year (£80 a month).
For every single Universal Credit claimant who is over 25, this means the allowance will increase from £317.82 to £409.89 a month.
This will change on April 6 and will be in play for the next 12 months.
This increase is temporary and has been changed to match the rate of statutory sick pay.
Who does the Universal Credit Increase apply to?
If you were already on Universal Credit, this increase applies to you.
If you are applying for Universal Credit now, you will also receive the new amount.
You can apply online here.
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If I am out of work, can I apply for Universal Credit?
Yes, if you have lost your job due to the pandemic or if you are self-employed and your business has taken an exceptional hit, you can apply for Universal Credit.
You may be eligible for more than the standard amount if you have children, a health condition, a disability, or if you are struggling with your rent.
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