Universal Credit: Coronavirus

(asked on 3rd July 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, for what reason the benefit cap is applied to claimants of universal credit who have had their working hours reduced as a result of the covid-19 outbreak.


Answered by
Mims Davies Portrait
Mims Davies
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 8th July 2020

The Benefit Cap restores fairness between those receiving out-of-work benefits and taxpayers.

On Universal Credit claimants in work have the certainty that each month payments adjust reflecting earnings and household circumstances.

Claimants may also benefit from a nine-month grace period where their benefit will not be capped if they have a sustained work history with monthly earnings of at least £604 (£569 up to March 2020) in each of the previous 12 months. These earnings can include statutory sick pay, employer sick pay, earnings from self-employment as well as payments from the furlough scheme.

Claimants can also approach their Local Authority for a Discretionary Housing Payment if they need additional help to meet rental costs.

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