Universal Credit: How the benefits overhaul affects you.

The Government have put plans in place to roll out a Universal Credit to job centres across the country. Despite what people believe, Universal Credit will not just be limited to the unemployed, if you’re currently getting tax credits or help with paying your rent, you’ll also notice the changes. A lot of people are still in the dark about the new changes to the benefit system, so I’ve decided to highlight a few of the major changes that you’re likely to see in the near future.

So to summarise the system, if you claim Jobseeker’s Allowance, Income Support, Employment and Support Allowance, Working and Child Tax Credits or Housing Benefit then you will eventually see your benefits replaced by one single benefit – Universal Credit. There are no limits to the number of hours you can work a week if you can work a week if you receive Universal Credit.

Monthly payments instead of fortnightly

Universal Credit will be paid monthly, whereas benefits have always previously been paid fortnightly. This is designed to feel more like a monthly salary and to get people more to grips with the ways of work. It may also be important to point out that it takes 5 weeks for your first Universal Credit payment to come through so you might want to take this into consideration before making your first claim.

Housing benefit will be no more

If you receive housing benefit then you will notice another big change. The current system means that housing benefit can be paid directly to the landlord. Once Universal Credit comes into practice, people will be responsible for paying their own rent. This could especially be a problem for those people who especially struggle with budgeting as they will have more money responsibility.

A single payment for couples 

Another noticeably big change will be affecting the couples! The new system will mean that couples who claim together will claim one single payment. In the past individuals all received their own benefits into their own bank accounts. You won’t have to worry too much about this just yet though, as the government will be bringing the new system in stages and will concentrate mainly on single new claimants for the time being.

CLICK HERE to read about other changes that will take place as a result of the Conservative re – election.