DWP Universal Credit changes coming in months could see cash boost for millions
Families with children could see a rise in the childcare costs covered by Universal Credit, and those caring for disabled children receiving enhanced rates may also get a boost amidst the ongoing cost of living crisis. The annual increase in benefit payments saw Universal Credit rise by 6.7% in April 2024, but this year's annual uplift may not meet expectations, with benefits set to rise by only 1.7%, as confirmed by Chancellor Rachel Reeves last October, in line with inflation rates at the time.
However, some claimants will be able to get extra help. The Department for Work and Pensions (DWP) is revamping some benefits this spring, marking the start of Labour's benefit overhaul.
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From April, Universal Credit recipients who have deductions, such as debts being paid off their benefits before they even receive the money, will likely see a significant improvement as the deduction cap drops by 10%. This means that instead of potentially losing a maximum of 25% of their standard allowance to deductions, only 15% can be taken away.
Moreover, from September, the Government is increasing the number of free childcare hours, which parents on Universal Credit can get further support on to cover additional costs. For claimants with disabilities, their benefits will undergo significant changes as part of Labour's plan to get more benefit recipients into the workforce.
The government is set to revamp the benefits system with changes that include scrapping the limited capability for work and work-related activity components and bringing in a new health element. A revised Work Capability Assessment awaits claimants, while those currently deemed to have limited capability will receive a Chance to Work Guarantee, as reported by Cambridgeshire Live, reports MyLondon.
Families with disabled children are due to see modest increases in support; for example, the enhanced care higher disability rate for children receiving Disability Living Allowance (DLA) or Personal Independence Payment (PIP) will go up from £487.58 to £495.87 per month, The Mirror has reported.
Children on the lower disability rate will also benefit from a rise in support, going from £156.11 to £158.76 monthly. More information about the upcoming spring benefit changes can be found on the GOV.UK website.
Labour continues to scrutinise the two-child limit policy on Universal Credit. For those moving from legacy benefits to Universal Credit with more than two children, it's important to note from the GOV.
UK site: "If you currently claim benefits or tax credits and aren't moving to Universal Credit until a later date, you'll continue to be paid an additional amount for each child you look after as long as you remain responsible for the same children and your circumstances remain the same."