Universal Credit: Five key changes are coming in 2022 – how will they affect you?
Nearly six million people rely on Universal Credit because they either can’t find work or to top up their income. The changes will mean some will be better off, but who exactly will benefit?
What Universal Credit changes are coming in for 2022?
- Benefit rates will rise by 3.1 percent. Universal Credit standard allowance will rise by £10.07 a month from £257.33 to £265.31 for those single and aged 25 and over.
- The Taper Allowance will change from 63p to 55p, meaning people can earn more before it’s clawed back.
- Work allowance is increasing and is now £557, up from £515. (If people get help with their housing costs it’s £335, up from £293.)
- Post Office Accounts will no longer be viable after November 2022. Thousands of people will need to make alternative arrangements prior to this date.
- The surplus earnings threshold is changing – after April it will be reduced to £300 from £2,500.
Meanwhile, people can still apply for a Budgeting Advance from the DWP if they are struggling.
They could borrow up to £800 which will need to be paid back monthly with deductions automatically taken from monthly benefit payments.
It’s available to people in receipt of Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance or State Pension Credit.
Applicants must have earned less than £2,600 in the past six months to qualify.
However, a change to the rules means that claimants now have 24 months to repay the loan, instead of the previous 12.
This could make getting a loan much more manageable for lots of Britons.
The easiest way to apply for a loan is online through one’s job coach or adviser but people can also call the helpline on 0800 328 5644.
Universal Credit claimants could also be entitled to help with free prescriptions, dental treatment, free eye tests and discounted glasses.
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