Universal Credit

(asked on 23rd June 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will increase the personal allowance of legacy benefits so that they are aligned with universal credit payments.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 6th July 2020

The Government has announced a suite of measures that can be quickly and effectively operationalised to benefit those facing the most financial disruption during the pandemic.

We estimate that 2.5 million households receiving Universal Credit will benefit straight away from the increase in the standard allowance rates which was announced on 20 March, and which is additional to the planned annual uprating. New claimants who have either become unemployed, or whose earnings or work hours have decreased because of the outbreak, will benefit too, subject to their eligibility.

We have also made a number of changes to legacy and other working age benefits in response to the COVID-19 outbreak, including increasing certain entitlements, such as Local Housing Allowance. Up-to-date information about the employment and benefits support available, including Universal Credit, Statutory Sick Pay, New style Jobseeker's Allowance, and Employment and Support Allowance, can be found here: www.understandinguniversalcredit.gov.uk/employment-and-benefits-support

It has always been the case that claimants on legacy benefits can make a claim for UC if they believe that they will be better off. There are special arrangements for those in receipt of the Severe Disability Premium, who will be able to make a new claim to Universal Credit from January 2021.

However, claimants should check their eligibility before applying to Universal Credit as legacy benefits will end when they submit their claim and they will not be able to return to them in the future. For this reason, prospective claimants are signposted to independent benefits calculators on GOV.UK. Neither DWP nor HMRC can advise individual claimants whether they would be better off moving to UC or remaining on legacy benefits.

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