The term “Universal Credit” stands for a single-benefit payment system. It has been created to financially assist people who belong to the age group of 16 to 64 years. If you are a benefit recipient because of unemployment, this provision has been included as a replacement for the traditional benefit system.
When you lose a job or take a break from it deliberately, you are eligible to get unemployment benefits from the Government. This is like financial assistance so that you can sustain. However, it cannot guarantee 100% support as you will receive a certain amount based on a few factors.
Now, the role of Universal credit will be to offer some of the features that the typical benefits might be offering. People who are underpaid can claim to reap the benefits of this provision. Thus, it does not matter if you have a job or not, like the traditional benefit-receiving concept.
You will be receiving a payment that is intended to cover your cost of living. It can be obtained once or twice a month, depending on the region where you put it. This facility is accessible even to someone who cannot work because of disability.
Get a deeper understanding of Universal Credit by going through this blog.
How can Universal Credit impact the benefit recipients of the UK?
Suppose you are already receiving other assistance in the form of child tax credit, house benefit, income support, working tax credit, etc. You do not have to do anything or look for the Universal Credit.
However, if your circumstances change and you get a notice to migrate immediately, you just have to do one thing. Claim Universal Credit within 3 months as it can replace the perks of all these benefits.
Once you come under this provision, you will no longer receive the other benefits. Even pension credit will stop because of this provision. However, there are exceptions, i.e., other benefits that you can still continue to avail yourself of.
· How do you receive the payments?
You will get the money directly in your bank account as you do in the case of 6 month loans or any other loan option. The payments will be issued once a month. You will be assigned purposes like rent payments, etc.
These payments are also meant to cover the housing costs. No need to worry if you do not hold a bank account or cannot open one right now. You should have a credit union account in that case to be able to utilise this facility.
After 5 weeks of claiming for Universal Credit, you can obtain the first payment. You might require money before receiving the first payment, but you can try out other avenues to arrange cash. It is not that you will receive the same amount of money every month.
With changing financial circumstances, the amount of payment will vary. An assessment of your financial profile will be done before issuing payments.
· Will your salary or earnings influence the payments?
Yes, if you and your spouse are employed, the amount you can expect should be calculated around the amount you receive as a salary. This amount will have no impact on the working hours you want to stick to. Universal Credit lets you get additional funds to cope with the growing cost of living.
However, with time, your salary would increase. It is then the payment you were receiving will slash. Thus, increased earnings can result in lower payments.
Now, here is another twist. If you have suddenly lost your job or discontinued it, you can receive an increased amount of payments. This same thing happens if you start receiving a low salary.
The rules will slightly alter if you are a self-employed person. You can take advantage of the benefits calculator to see how your earnings, in this case, can influence the payment you receive. Your earnings should be reported by the employer when you are salaried.
You have to report your earnings when you are earning from self-employment. For disability or other health conditions, the rule might differ in a slight manner.
· When and how will these payments be affected?
There will be no impact on the amount you will obtain as Universal Credit if your employer is providing you with the same salary amount. However, usually, this amount is evaluated every month under the name of the monthly assessment period.
You can expect to receive the same amount if you get a salary from your employer on the same date of every month. Another instance is when the amount of Universal Credit would remain the same. It is when your personal circumstances seem to remain the same.
There are certain aspects that can affect the payment amount. It is this time when you do not receive your salary at the time of the monthly assessment period. In addition, expect some alterations in the payments if you receive your salary multiple times in a month.
Besides, the amount that you can expect to receive will bound to differ if you get a different salary at different times of the month. Determine how much you will be paid while putting your sign in the online account.
You will receive a notification when your payments will stop coming in. It does not happen all of a sudden. Maybe you and your spouse start earning well that are adequate to match your needs.
You will no longer receive the payments since you do not need help. However, if your situation changes and your salary drops, you will be eligible for Universal Credit. You do not have to feel stressed out about this.
The bottom line
First, start by creating an account to receive Universal Credit. You must complete the claim 28 days after the account has been created. Meanwhile, try to pay off debts you have taken out in the form of loans while living on benefits.
This will help you to free up more money that you can use to manage the cost of surviving. It is not necessary to claim virtually only as you can do the same by making a call as well.
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