Are you ready for this change?
The Universal Credit (UC) uplift introduced in March 2020 in response to coronavirus will expire at the end of September 2021. The uplift was extended in April 2021 for a six-month period. The Government confirmed recently that there will be no further extension beyond September 2021.
The Department for Work and Pensions (DWP) has confirmed that the 6th October will be the first date that claimant’s monthly assessment periods will be affected. Meaning that reductions in payments will be felt by claimants from around 13th October. We understand that the DWP intends to add a notification on the payment details of UC claimant’s online journals advising that the Covid uplift is ending and that payments may drop. However, they are not expected to advise how much the drop will be or the exact date.
For claimants who moved on to Universal Credit after April 2020, the £20 temporary weekly increase will always have been included in your payments which will now reduce as all claims will be affected by the removal of the uplift.
To help you plan your finances from October 2021 without the £20 weekly uplift, we have detailed below how much your monthly payment will reduce by.
The standard allowance of Universal Credit per calendar month will change as follows under the following payment category scenarios:
- The 2021 payment for those who are single and under 25 - will reduce from £344 to £257.33
- The 2021 payment for those who are single and 25 and over - will reduce from £411.51 to £324.84
- The 2021 payment for a couple who are both under 25 - will reduce from £490.60 to £403.93 (that is a total not an amount for each person)
- The 2021 payment for a couple who are both 25 and over - will reduce from £596.58 to £509.91 (that is a total not an amount for each person)
Amounts may vary slightly when the reduction kicks in.
You need to be aware of these changes and begin to budget accordingly.
Our Money Advice Team are committed to supporting you should you face financial difficulties as a result of this change. Contact the team today at firstname.lastname@example.org or by calling 0161 217 6016 (Option 4).