UC to be cut by £20pw from 6th October

Over the coming weeks, people claiming Universal Credit will receive notifications about a cut to their benefits this autumn.

As it stands, the government is set to cut benefits by £20 a week – equivalent to £1,040 a year – from 6 October. The exact date people will see the cut kick in will depend on the day they get their Universal Credit payment. For many, this means September will be the last month they see their benefits paid at existing levels.

If plans go ahead, the cut will hit nearly six million people on Universal Credit. More than a third (38%) of those who’ll see their income hit are already in employment, while one in six (16%) are under 25. The latest figures show roughly 1.9 million families with children will see their benefits cut.

Regions that will see the biggest proportion of residents hit by the cut are London and the North East.

While every Universal Credit claim will drop by around £85 a month, the proportion of income claimants will lose will vary depending on their circumstances. Single people under 25 are set to be hit by the biggest drop.

Monthly standard allowances will drop:

• By a quarter for single claimants under 25, from £344 to £257.33
• By a fifth for single claimants over 25, from £411.51 to £324.84
• By 17% for joint claimants under 25, from £490.60 to £403.93
• By 14% for joint claimants over 25, from £596.58 to £509.91.

What support is available?

Everyone’s situation is different, so it’s important to seek independent help from somewhere like Citizens Advice.

• A benefits check. This will help you verify you’re getting all the support you’re entitled to. You can use an online calculator or contact your local Citizens Advice.
• Support with essential costs. You can contact your local council to see if they can give you any extra help from a hardship fund, including food or essential things like clothes. Check your local council on GOV.UK.
• Help with debt. Some bills can cause you more problems than others if you don’t pay them. Rent or mortgage arrears, energy bills and council tax are your priority debts as there can be serious consequences if you don’t pay them. Citizens Advice can provide guidance if you’re struggling with bills.
• Free school meals. If you have children and you get certain benefits, you might be able to get free school meals for your children.
• Food bank vouchers. If you can’t afford the food you can ask for a referral from Citizens Advice or an organisation that’s already supporting you – for example, a charity, school or children’s centre – for a food bank voucher.

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