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Covid: What is universal credit - and what other benefits are available?

 

 

Labour and some Conservative MPs are calling on the government to keep a temporary increase to universal credit.

The benefits payment was boosted by £20 a week at the start of the pandemic to help people who were struggling to cope financially.

The increase is due to stop at the end of March.


What was the increase and why is it under review?
Universal credit is claimed by more than 5.5 million households. The payment was increased by £20 a week in April 2020 as part of Chancellor Rishi Sunak's early Covid economic response.

The government says the boost was only designed as a temporary response to help those unable to work or struggling due to the lockdown.

The Joseph Rowntree Foundation - a charity which researches poverty - says millions of households face an income loss equivalent to £1,040 a year, and that 500,000 more people will be driven into poverty.

The government says it has made £280bn available to the most vulnerable families, and that additional help will be set out in the March Budget.


What are the concerns?
Universal credit has been the source of considerable debate from the start.

Firstly, it is complicated to work out exactly what you might receive. Some people, such as those with £16,000 or more in savings, will not be eligible at all.

Others may find what they receive depends on their circumstances, including any income their family has, as well as housing and childcare costs.

One contentious issue is that it usually takes five weeks from the date of claiming to receiving a first payment, although claimants may be able to get an advance loan.

 

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