personal finance

Universal Credit changes happening next month – what's changing & how may it affect you?


The DWP announced last week that parents and guardians are to be given extra time to claim back childcare costs with Universal Credit. This means working parents and guardians will now have an additional month to claim back up to 85 per cent of eligible childcare costs with Universal Credit. They previously had to report their costs in the same month-long assessment period in which they were incurred, in order to be recovered. However, following the changes coming into effect, claimants will be given an additional assessment period in order to make the claims.

Minister for Employment Mims Davies said of the changes: “Sometimes there just aren’t enough hours in the day to get everything done, and that’s before something unexpected happens like a trip to the hospital or having to stay late at work.

“We are determined to support families to balance work-life and parenthood.

“Allowing an extra month-long assessment period for people to report their childcare costs means people shouldn’t have to worry about missing out on crucial payments they are entitled to.”

Should a parent or guardian work while in receipt of Universal Credit and have one child, they may apply for up to £646.35 per month.

Should they have two or more children, up to £1,108.40 per month may be applied for.

The new regulations are due to come into force next month, on Wednesday, October 16.

The DWP has said that support can also be claimed in the month prior to starting work, if a person has accepted a job offer.

It comes amid a number of updates to the Universal Credit system.

For instance, the DWP is making 100 per cent advances available which are repayable over 12 months increase to 16 months in October 2021.

The DWP said other changes include two-week Transition to Universal Credit Housing Payment, removal of the seven-day waiting period; and a new Help to Claim service to assist people to make their claim.

How do I make a Universal Credit claim?

Claims for Universal Credit should be made online.

The DWP said that if a person is in work while in receipt of Universal Credit, they can apply for up to £646.35 per month if they have one child and up to £1,108.40 for two or more children.

What has DWP said for those needing urgent assistance, rather than the flexible changes?

The DWP has stated that budgeting advice is available to everyone, and budgeting advances are available for eligible claimants.

A range of childcare support for families is available from the government.

This includes 30 hours free childcare for three and four-year-olds of working parents.

The guidance added that “15 free hours for disadvantaged two-year-olds and for all three and four-year-olds” is also available.

READ MORE: Universal Credit changes: When will you get paid? New system comes in to force on this day



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.