DWP can cut your Universal Credit payments if you claim any of these 12 benefits
The Department for Work and Pensions has warned Universal Credit claimants that claiming other benefits at the same time can affect their monthly payments. Deductions are made for being on some other allowances that are paid to help with retirement, unemployment, disability, caring responsibilities, bereavement and maternity, including State Pension and Carer's Allowance.
More than seven million people are now receiving Universal Credit, including 206,000 here in Birmingham (with 62,000 working and the other 144,000 unemployed). The amounts paid in each element of Universal Credit went up by 6.7 per cent from April, giving people an average monthly boost of £39, or £470 over the financial year.
But this can be unexpectedly reduced if people are also on any 'overlapping benefits.' These deductions are worth bearing in mind during the ongoing cost of living crisis as people may decide to cancel the other benefit and just claim Universal Credit every month instead.
However, claimants may prefer having two different sets of payments as other benefits tend to be paid weekly or fortnightly and can help some people manage their money more effectively.
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The DWP says the overlapping benefits that can affect your Universal Credit are New Style Jobseeker's Allowance, New Style Employment and Support Allowance, Carer's Allowance, Maternity Allowance, Widowed Parent's Allowance, Widowed Mother's Allowance, Armed Forces Pension, Severe Disablement Allowance, Industrial Injuries Disablement Benefit, Incapacity Benefit, State Pension and Scotland's Carer's Support Payment. In these cases, your Universal Credit will be reduced by an amount equal to what you receive in the other benefit.
Those who receive Carer's Allowance and then get a Universal Credit deduction of £354.90 (the monthly equivalent of the Carer's Allowance payments) can partially offset this by claiming Universal Credit's own Carer Element of £198.31. Note that the Carer Element does not have an earnings limit, whereas people on Carer's Allowance are only entitled to receive it if they earn up to £151 a week - or they'll have to pay the benefit back.
Meanwhile, Widow's Mother's Allowance has been replaced by Widowed Parent's Allowance and then by Bereavement Support Payment. These phased-out benefits continue being paid until someone is no longer eligible.
It's also worth noting that New Style JSA and New Style ESA are based on whether someone has sufficient National Insurance contributions. They aren't the same as the legacy benefits income-based JSA and income-related ESA which are means-tested and are both being replaced by Universal Credit, with people currently being asked to move across.
State Pension and Universal Credit cannot normally be claimed at the same time. But there are exceptions if you live with a partner. If only one person has reached State Pension age, you and your partner can still have a joint claim for Universal Credit. The amount received by the older partner in State Pension will be deducted from the Universal Credit payment. The Universal Credit claim will stop altogether when both people are of State Pension age.
If you're getting Pension Credit, it will stop if you or your partner make a claim for Universal Credit. The DWP says you will usually be better off staying on Pension Credit instead.
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