The Universal Credit £20-a-week uplift which was put in place in response to coronavirus in March 2020 expired at the end of September, as the Government had confirmed.
The Universal Credit uplift was extended in April 2021 but only for six months.
The Department for Work and Pensions (DWP) has confirmed Wednesday 6th October will be the first date monthly assessment periods will be impacted. This moves the reduction date from September to the earliest impacts being felt around 13th October. The DWP intends to add a notification on the payment side of the journal advising claimants that the Covid uplift is ending and payments may drop. However, they won't advise how much the drop will be or the date impact will be seen by the specific claimant.
If you're on Universal Credit, to help you plan your finances from October without the £20 weekly uplift, we have listed the changes to Universal Credit below.
How much your Universal Credit will be reduced
The standard allowance of Universal Credit per calendar month will change as follows under the following payment category scenarios:
- The 2021 payment for those who are single and under 25 - will reduce from £344 to £257.33
- The 2021 payment for those who are single and 25 and over - will reduce from £411.51 to £324.84
- The 2021 payment for a couple who are both under 25 - will reduce from £490.60 to £403.93 (that is a total not an amount for each person)
- The 2021 payment for a couple who are both 25 and over - will reduce from £596.58 to £509.91 (that is a total not an amount for each person)
Amounts could vary slightly when the reduction kicks in.
You need to be aware and begin to budget accordingly.
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Paying your rent on time must be your priority. We have lots of different ways to pay to help take the stress out of managing your money. Contact us if you need any support.