Benefit Changes in 2020

BENEFIT CHANGES 2020 - Turn2Us have created this handy list of benefit changes.  Turn2us won the Guardian’s 2019 Digital Innovation Award. Well done chaps. 

In 2020 a number of changes are being made to welfare benefits and tax credits.

April

The benefits freeze is due to come to an end and working-age benefits will rise by 1.7%. The State Pension will also increase.

There will also be changes to the National Living Wage. The minimum rate for workers over 25 will rise to £8.72 an hour.

Additionally, the government will introduce a new legal entitlement to two week’s leave for employees who suffer the death of a child under 18, or a stillbirth after 24 weeks of pregnancy.

New surplus earnings rules come into effect.

June

The free TV license will no longer be available to all people 75 or over. From 1 June you will have to be aged 75 or over and getting Pension Credit.

July

Claimants will receive an additional fortnight’s worth of Income-based Jobseekers’ Allowance, Income-related Employment and Support Allowance or Income Support if they are on one of these benefits when they move over to Universal Credit.

September

Self-employed people, whose earnings are low, may have their Universal Credit worked out on higher earnings than they have.  This is called the Minimum Income Floor.  If you have started your business within the last 12 months then the minimum income floor does not affect you for the first 12 months of your Universal Credit claim. The government have announced that they will extend this 12-month ‘grace period’ to all people that are gainfully self-employed. Although this will be available to a few claimants that the government will transfer over to Universal Credit from July 2019; it will be fully implemented from September 2020.

Scotland

From Summer 2020 the Scottish government will take responsibility for disability benefits for children. The new Disability Assistance for Children and Young People benefit will have similar entitlement conditions to the existing Disability Living Allowance but will have different systems for applications and assessments.

The Scottish Child Payment scheme is intended to start making payments by Christmas 2020. Initially, the scheme will pay an additional £10 per week per child to families in receipt of Universal Credit, Pension Credit, or income-related JSA, ESA or Income Support, with children under the age of 6.

Northern Ireland

Northern Ireland transitional protection due to end from 31 March 2020, the Welfare Supplementary Payments scheme in Northern Ireland will stop making payments. This scheme supports anyone who is affected by the bedroom tax, the transition from DLA to PIP, the benefit cap, and other changes introduced to the benefits system since 2010.

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