Universal Credit: Why your payment could be reduced - or stopped
UNIVERSAL CREDIT is a payment which is intended to help with living costs, and it may be claimed by people who are out of work or on a low income.
Universal Credit: Work allowance explained
Universal Credit is usually made monthly, and it is replacing a number of following benefits. These are: Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), and Working Tax Credit.
Universal Credit payments are made up of a standard allowance and any extra amounts which may apply to the claimant.
Examples of this may be is if they have children, need help paying their rent, or have a disability or health condition which prevents them from working.
It’s possible to use an independent benefits calculator in order to see how much a person could get.
Factors such as earnings can affect the payment amount, and the benefit cap may limit the total amount of benefit that a person receives.
READ MORE: Universal Credit is rising in April as benefits freeze ends
Circumstances are assessed each and every month.
Should a person have changes in their circumstances, these can affect how much the person is paid for the entirety of the assessment period - not just from the date that they’re reported.
Universal Credit: How earnings affect payments
If a person is employed, how much they get will depend on their earnings.
It will reduce gradually as a person earns more - for every £1 they earn, the payment will reduce by 63 pence.
There’s no limit as to how many hours a person can work.
Some people can earn a certain amount before their Universal Credit is reduced, and this is known as the work allowance.
This is if a person or their partner are either responsible for a child or young person, or living with a disability or health condition that affects their ability work.
A person has a lower work allowance if they get help with housing costs.
Universal Credit: A change in circumstances
There are various reasons why a Universal Credit may reduce, and this includes if a person does not report a change of circumstances straight away.
A person will need to report changes to their circumstances so they keep getting the right amount each month.
Universal Credit: How employment affects the service
Gov.uk details that changes can include:
- Finding or finishing a job
- Having a child
- Moving in with a partner
- Starting to care for a child or disabled person
- Moving to a new address
- Changing bank details
- A person’s rent going up or down
- Changes to a health condition
- Becoming too ill to work or meet the work coach
- Changes to one’s earnings (only if one’s self-employed)
A person can report a change of circumstances by signing in to their Universal Credit account.