personal finance

What is Universal Credit standard allowance? Do you qualify for an extra payment?


Universal Credit may be paid to eligible claimants in order to help with their living costs. The Universal Credit benefit replaces a number of other state benefits – including Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), and Working Tax Credit. It is being introduced in stages across the UK. Those eligible for the payment will be paid a monthly standard allowance.

This means that applicants able to receive Universal Credit will get this amount being paid into their account every month, provided their circumstances don’t change and they continue to meet their agreed responsibilities in their Claimant Commitment.

How much is the Universal Credit standard allowance?

Circumstances – Monthly standard allowance

Single and under 25 – ££251.77

Single and 25 or over – £317.82

In a couple and both are under 25 – £395.20 (for both)

In a couple and either person is 25 or over – £498.89

It can take five weeks to receive the first Universal Credit payment.

For those who require it, it’s possible to apply for an advance payment.

However, this is an interest-free loan from the government which must be repaid.

The advance is paid back from out of one’s first Universal Credit payment.

While it’s down to the claimant as to how many months they repay the advance over, they must pay it back within 12 months.

Some people may qualify for an extra payment.

This includes those who have children, with an extra amount for each child possibly available.

A person who has a disability or health condition may also be able to claim the extra monthly amount.

People who care for at least 35 hours a week for a severely disabled person, who receives a disability-related benefit, may also get an extra monthly amount.

Universal Credit is a tax-free state benefit.

This means that any amount of this benefit is not taxable, and will not be considered in Income Tax calculations.

Other state benefits such as Pension Credit and Winter Fuel Payments are tax-free, however state pension payments are not.



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