UK Credit

Universal credit applicants warned of £ 343 per month payout drop after assessments

Universal credit applicants now have to manage with less money after a coronavirus boost ended on October 6.

The Ministry of Work and Pensions said the money was only a temporary intervention and, after extending it for six months beyond the original year, it has now been reduced.

The boost gave £ 86 per month – or around £ 20 per week – to the standard universal credit allowance.

But there are other things that could also see payments drop more dramatically as the DWP verifies claims and encourages benefit recipients to return to work.

READ MORE: DWP Checks Your Bank Account and Social Media for These 7 Signs of Benefit Fraud

In its report on Shaping Future Support: The Health and Disability Green Paper, the DWP acknowledges that benefit claimants fear their payments will be drastically reduced if they have to start looking for work as well as when they actually get a job.

Those on Universal Credit who find a job have their UC reduced by 63 pence for every £ 1 they earn above a certain salary level known as a working allowance.

But they can take a big drop before they even find a job.

The amount paid to a person claiming universal credit can be reduced by £ 343 per month if the DWP decides that person must now start preparing to return to work.

This is because people on Universal Credit who have a health condition or disability receive a supplement of £ 343.63 for “Limited capacity for work and work-related activities” (LCWRA).

However, if the DWP reassesses their situation and says they must now look for a job, that amount is waived.

READ MORE: DWP could offer ‘targeted’ cash boost to allow claimants to drop benefits and work

The DWP states in the document: “Having these different levels of payment is meant to ensure that financial support is focused on the people who need it most.

“However, it can mean that people are worried about the change in their benefit level after an assessment.

“For example, the amount of benefits paid to a person claiming UC could be reduced by £ 343 per month if we find that the person is no longer eligible for the additional support that arises from the LCWRA.”

It examines the idea of ​​targeted financial support to help claimants re-enter the labor market without experiencing sudden changes in household income.

And he points out that people on the Personal Independence Payment (PIP) may also see their payments reduced if their condition improves and they switch from improved payment rates to standard payment rates.

One solution might be to see if it is possible to get emergency cash assistance of up to £ 800 per month.

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