Coffey questioned on Universal Credit uplift and legacy benefits
Universal Credit is available to those who are out of work or on a low income. As of January 13, six million people were receiving Universal Credit, which is an uplift of 98 percent from March 12, 2020. During the initial months of the coronavirus pandemic, there was an increase in the number of advances being paid. Now new changes are being introduced to Universal Credit, but will you be affected?
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What is Universal Credit?
Universal Credit is a benefit payment available to eligible recipients on a monthly or bimonthly basis to help them with the cost of living.
The payment is designed to support individuals who are out of work or on a low income.
Universal Credit replaced these payments, which are called legacy benefits by the Department for Work and Pensions:
- Income support
- Working tax credit
- Income-based jobseeker’s allowance (JSA)
- Income-related employment and support allowance (ESA)
- Housing benefit
- Child tax credit.
READ MORE: PIP assessments set to change as DWP issues important update
What are Universal Credit advances?
Advance payments for Universal Credit are available to those who do not have enough money to live on before their first payment of UC arrives.
Typically you receive your first payment of Universal Credit, seven days after the end of your first assessment period.
After which you will normally be paid monthly on this date.
Universal Credit advances are given in advance if you cannot afford food or rent.
These payments need to be repaid.