WORKING families on Universal Credit are set to get another £630 a year thanks to new rules that kick in Monday.
The work allowance has been raised by £1,000 over the year letting you hold onto more of your hard earned cash.
Getty – Contributor Working households on Universal Credit will be able to hold onto more of their earnings from Monday
The Chancellor announced the hike for working parents with dependant children, or adults with an illness that affects how much they can work, in October’s Budget last year.
Universal Credit payments are affected by how much you earn every month – for every £1 you earn over the work allowance the Government deducts 63p from your welfare payout.
The work allowance is how much of your earnings you can hold onto before the taper rate kicks in.
There are two different rates for the work allowance depending on whether you get help with your housing costs.
How has the work allowance changed?FROM Monday, working families will be able to hold on to another £630 a year of their earnings now that the working allowance has been raised by £1,000 a year.This is what the rate rise actually means for your monthly budget:
Old rate: £198
New rate: £287
Old rate: £409
New rate: £503
The work allowance applies to single people or those in a couple who have dependent children or limited capability to work.
Workers who don’t have children who depend on them are not entitled, meaning that every penny they earn is subject to the taper rate.
Up until now, the lower work allowance for those who claim housing benefit has been set at £198.
But from Monday, the rate has risen to £287 meaning that you can hold on to another £89 a month.
Those who are claiming the higher work allowance rate – people who don’t claim housing benefit – will hold onto another £94 a month now that the rate has been put up to £503 from £409.
It will benefit millions of workers on Universal Credit who will also see a boost to their pay packets as the minimum wage increases.
Unfortunately, Monday’s benefits boost won’t help workers without children who are subjected to the taper rate for every penny that they earn.
The Sun wants to Make Universal Credit WorkUNIVERSAL Credit replaces six benefits with a single monthly payment.One million people are already receiving it and by the time the system is fully rolled out in 2023, nearly 7 million will be on it.
But there are big problems with the flagship new system – it takes 5 weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.
And while working families can claim back up to 85 per cent of their childcare costs, they must find the money to pay for childcare upfront – we’ve heard of families waiting up to 6 months for the money.
Working parents across the country told us they’ve been unable to take on more hours – or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.
It’s time to Make Universal Credit work. We want the Government to:
Get paid faster: The Government must slash the time Brits wait for their first Universal Credit payments from five to two weeks, helping stop 7 million from being pushed into debt.
Keep more of what you earn: The work allowance should be increased and the taper rate should be slashed from 63p to 50p, helping at least 4 million families.
Don’t get punished for having a family: Parents should get the 85 per cent of the money they can claim for childcare upfront instead of being paid in arrears.
Together, these changes will help Make Universal Credit Work.
Join our Universal Credit Facebook group or email UniversalCredit@the-sun.co.uk to share your story.
At the time it was announced, Chancellor Philip Hammond said it was a response to concerns raised about how Universal Credit is pushing millions into poverty.
It’s a step in the right direction – but it’s not enough.
The taper rate stops people like single mum Tanya Lawson from making enough to pay the rent despite having three jobs because she can’t afford the cut to her benefits if she took on more hours.
The Sun wants you to hold onto even more of your earnings so we’re campaigning to Make Universal Credit Work, calling for the taper rate to be reduce to 50p.
The changes would let vulnerable people hold on to another £100 a month, helping four million households out of poverty.
BANKS A LOT Universal credit forcing skint mums to turn to ‘baby banks’ for nappies & food CREDIT CRISIS I might lose my home due to 5-week wait for Universal Credit cash BEG AND BORROW I had to beg for food during nine-week wait for Universal Credit ExclusiveON THE BREADLINE I have £1.80 a day to feed my family after 7-week Universal Credit delay ‘I WAS LIVID’ Universal Credit staff said to leave daughter, 8, home alone so I could work UNIVERSAL HELL I’m so broke on Universal Credit I feed my daughter leftover party food
The Sun also wants the five week waiting period new claimants face to be slashed to two weeks and for parents to get the help with 85 per cent of childcare costs paid upfront.
We’ve spoken to hundreds of claimants suffering on the new system.
One mum told us how she’s left with £1.80 a day to feed her family of four, while Farzana Miah has been left begging for cash from strangers so she can put food on the table for her toddler.
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