Universal Credit: Lone Parents

(asked on 22nd October 2018) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, for what reasons lone parents under 25 years old will no longer be entitled to receive the higher rate of personal allowance under universal credit.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 30th October 2018

The lower rates for younger claimants who are under the age of 25 years reflects the fact that they are more likely to live in someone else's household and have lower living costs and lower earnings expectations. This also reinforces the stronger work incentives that Universal Credit creates for this age group.

Many claimants will have higher entitlements under Universal Credit but for those who do not, anyone on existing benefits or tax credits whose circumstances remain the same will not lose out in cash terms when claiming Universal Credit, as part of the managed migration process. These claimants will be given transitional protection to avoid cash loss at the point of change.

Universal Credit is more generous in terms of childcare costs with an increased level of support for childcare costs from 70 per cent in legacy benefits, to 85 per cent within Universal Credit. This means that working families claiming Universal Credit can reclaim up to 85 per cent of their eligible childcare costs each month, up to a maximum of £646.35 for one child and £1,108.04 for two or more children. Since February 2018, Universal Credit claimants have been able to upload digital copies of their childcare cost receipts or invoices through their online Universal Credit account, which makes this process easier.

Universal Credit also includes support for housing costs, children and support for disabled people and carers.

__________________________________________________________________________

Reticulating Splines