Latest Universal Credit Benefit Rates for The Next Financial Year (2021/2022) Have Been Announced By The Department For Work And Pensions (DWP)

UNIVERSAL CREDIT - Simon Collyer ABC founder appeared on the Sadie 9 show on BBC Essex 08/07/2021. The government has announced the new rates of Universal Credit after the £20 pw uplift has been removed. 

Simon has argued due to skyrocketting inflation claimants will not be able to afford to live on theese levels of payment. That we may see a 'Winter of Discontent'. 

Due to coronavirus, Universal Credit was increased by £20 per week to help families who may have been suffering income / work wise due to the pandemic.

Universal Credit is claimed by more than 5.5 million households in the UK.

Your Universal Credit payment is made up of a standard allowance and any extra amounts that apply to you, for example if you:

• have children
• have a disability or health condition which prevents you from working
• need help paying your rent

 Your circumstances are assessed every month. Changes in your circumstances can affect how much you are paid for the whole assessment period - not just from the date you report them.

The benefit cap may limit the total amount of benefit you receive.

But the below is the new guidance on what the basic rate of Universal Credit will be for the next financial year in 2021 / 2022 (in monthly rates). The figure in the left are the rates for 2020/2021 and the figures on the right are for 2021 / 2022.

Claimants may find that what they receive has gone up ever so slightly, this is due to inflation.

Universal Credit explained

What is Universal Credit?

Universal Credit (UC) replaces six existing benefits – Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance, Housing Benefit, Working Tax Credit and Child Tax Credit – with a single payment.

When is it being introduced?

It was rolled out gradually across the country, starting in pilot areas in 2013. But from July 2019, around 2million people already receiving the old benefits will be moved onto UC, which is due for completion in 2023.

Universal Credit is not like a lot of other benefits, such as PIP or the State Pension, in that it gets payed monthly as opposed to weekly.

This is to ensure the money acts more like a monthly wage. In reality it saves the government money to pay people monthly not weekly.

But Prime Minister Boris Johnson and Chancellor of the Exchequer Rishi Sunak have announced this is due to come to an end in September 2021.

The £20 increase was introduced in March 2020 on a one-year basis to help claimants during the pandemic. 

Boris Johnson told the Commons Liaison Committee that “higher skilled jobs” are the “best way forward” when asked to reconsider plans to end the Universal Credit uplift in the autumn.

Latest updates on Universal Credit rates

New rates

Universal Credit Amounts

Standard allowance - Single

Single under 25 - £256.05 / £257.33

Single 25 or over - £323.22 / £324.84

Couple

Joint claimants both under 25 - £401.92 / £403.93

Joint claimants, one or both 25 or over - £507.37 / £509.91

Child amounts

First child (born prior to 6 April 2017) - £281.25 / £282.50

First child (born on or after 6 April 2017) / second child and subsequent child (where an exception or transitional provision applies) - £235.83 / £237.08

Disabled child additions

Lower rate addition - £128.25 / £128.89

Higher rate addition - £400.29 / £402.41

Limited Capability for Work amount - £128.25 / £128.89

Limited Capability for Work and Work-Related Activity amount - £341.92 / £343.63

Carer amount - £162.92 / £163.73

Childcare costs amount

Maximum for one child - £646.35 / £646.35

Maximum for two or more children - £1108.04 / £1108.04

Non-dependants' housing cost contributions - £75.15 / £75.53

Work allowances - Higher work allowance (no housing amount)

One or more dependent children or limited capability for work - £512.00 / £515.00

Lower work allowance

One or more dependent children or limited capability for work - £292.00 / 293.00

UC daily reduction - 100% reduction rate

Single

Single under 25 - £8.40 / £8.40

Single 25 or over - £10.60 / £10.60

Couple

Joint claimants both under 25 (per sanctioned claimant) - £6.60 / £6.60

Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - £8.30 / £8.30

UC daily reduction - 40% reduction rate

Single

Single under 25 - £3.30 / £3.30

Single 25 or over - £4.20 / £4.20

Couple

Joint claimants both under 25 (per sanctioned claimant) - £2.60 /2.60

Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - £3.30 / £3.30

Third Party Deductions at 5% of UC Standard Allowance (excludes deductions for rent and service charges included in rent)

Single

Single under 25 - £12.80 / £12.87

Single 25 or over - £16.16 / £16.24

Couple

Joint claimants both under 25 (per sanctioned claimant) - £40.19 / £40.39

Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - £50.74 / £50.99

Maximum deductions for Fines 108.35 108.35

Minimum deductions for rent and service charges included in rent at 10% of UC Standard Allowance (10% minimum introduced from Nov 2014)

Single

Single under 25 - £25.61 / £25.73

Single 25 or over - £32.32 / £32.48

Couple

Joint claimants both under 25 (per sanctioned claimant) - £40.19 / £40.39

Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - £50.74 / £50.99

Maximum deductions for rent and service charges included in rent at 20% of UC Standard Allowance (20% maximum introduced from Nov 2014)

Single

Single under 25 - £51.21 / £51.47

Single 25 or over - £64.64 / £64.97

Couple

Joint claimants both under 25 (per sanctioned claimant) - £80.38 / £80.79

Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - £101.47 / £101.98

Overall Maximum deduction Rate at 30% of UC Standard Allowance:

Single

Single under 25 - £76.82 / £77.20

Single 25 or over - £96.97 / £97.45

Couple

Joint claimants both under 25 (per sanctioned claimant) - £120.58 / £121.18

Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - £152.21 / £152.97

Child Maintenance Deduction - £36.40 / 36.40

Ordinary Overpayments and Civil Penalties at 15% of UC Standard Allowance

Single

Single under 25 - £38.41 / £38.60

Single 25 or over - £48.48 / £48.73

Couple

Joint claimants both under 25 (per sanctioned claimant) - £60.29 / £60.59

Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - £76.11 / £76.49

Ordinary Overpayments and Civil Penalties at 25% of UC Standard Allowance if claimant's and/or partner's earnings are over the Work Allowance

Single

Single under 25 - £38.41 / £38.60

Single 25 or over - £48.48 / £48.73

Couple

Joint claimants both under 25 (per sanctioned claimant) - £100.48 / £100.98

Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - £126.84 / £127.48

CAPITAL LIMIT - Universal Credit

Upper limit - £16000.00 / £16000.00

Amount disregarded - £6000.00 / £6000.00

Assumed income from capital for every £250 or part thereof, between capital disregard and upper capital limit - £4.35 / £4.35

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