Universal Credit Payments Could Be Stopped for These Claimants – Are You Affected?

By Ehsteem Arif

Published on:

Keir Starmer

Universal Credit (UC) is a vital financial support system for low-income families in the UK, providing monthly payments to help with living costs amid rising inflation. However, recent developments indicate that some claimants might face a review that could result in their payments being stopped. This article provides an overview of the UC payment review process, its impact on claimants, and the latest updates on Universal Credit.

Review

The UK Government initiated the Universal Credit Payment Program to ease the financial burden on low-income households. Periodic reviews of UC payments ensure recipients receive the correct support and amount. Claimants will be contacted via their online account to undergo a review, which includes a phone interview and the submission of supporting documents.

Advertisement

Claimants must provide documentation for housing costs, savings, earnings, childcare expenses, medical conditions, and student finances. The review aims to determine whether claimants are underpaid, overpaid, or receiving the correct amount. Based on the review findings, further payments will be adjusted accordingly.

Stopped Payments

The UC review process identifies discrepancies in payment amounts. If a claimant is underpaid, they will receive additional compensation. Conversely, if overpaid, the payments might be stopped or reduced.

Advertisement

Claimants must accurately report their savings and other financial details. Inaccurate reports can lead to overpayment assessments, requiring repayment or cessation of UC payments. Claimants can challenge the review decision if they disagree with the outcome.

Latest Updates

Recent updates indicate changes for part-time workers receiving UC. Benefits will be reduced for those not actively increasing their earnings. Workers employed for 15 hours per week at the National Living Wage must seek additional hours or risk reduced payments. This includes attending work meetings, job applications, interviews, or working extra hours.

Advertisement

Additionally, new rules require over 180,000 UC claimants to increase their working hours. Those working less than half a full-time week must enhance their hours following the PM’s announcement of Generation Welfare Reforms aimed at boosting earnings, job seeking, and economic growth.

News

The benefit rate for UC payments is adjusted annually in April. For the 2024-25 tax year, benefit rates are expected to rise by 6.7%, effective from April 8. However, new rates will not be paid until the first assessment period, likely in June.

Advertisement

Summary

Universal Credit payments aim to reduce financial stress for eligible claimants. To qualify, recipients must be 18 or older (with exceptions for certain 16-17-year-olds) and have savings and investments below £16,000. Claimants should refer to the official government portal for specific guidelines.

To claim UC payments, applicants must create an account on the Universal Credit portal, submit the application within 28 days, and provide supporting documents for validation. Qualified candidates will be notified, and payments will be deposited into their bank accounts.

Advertisement

For further information and updates, claimants are encouraged to visit the UK government’s official webpage or the Department for Work and Pensions (DWP). Stay informed by browsing relevant articles on this website.

FAQs

How do I challenge a UC review decision?

Contact UC officials through your online account to file a challenge.

Advertisement

What documents are needed for a UC review?

Documents include proof of housing costs, savings, earnings, and childcare expenses.

How can part-time workers avoid reduced UC payments?

Seek additional work hours or engage in job-seeking activities.

Advertisement

When will the new UC benefit rates be paid?

New rates are expected to be paid around June, post-assessment period.

What happens if I miss my UC review phone interview?

Reschedule by contacting UC officials through your online account.

Advertisement


Disclaimer- We are committed to fair and transparent journalism. Our Journalists verify all details before publishing any news. For any issues with our content, please contact us via email. 

Ehsteem Arif

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

Recommend For You

Leave a Comment