Benefits

Billions of pounds of government benefits and allowances are going unclaimed every year.

One of the reasons is that many people don't realise they qualify for them.

Government support that's going unclaimed includes:

• Child benefit
• Pension credit
• Council tax support
• Universal Credit
• Attendance Allowance

If you’re on low income, out of work or cannot work you may be eligible for Universal Credit. The government has made changes to allow working families to keep more of their money.

Check if you’re eligible for Universal Credit 

If you claim benefits or tax credits, you will soon move to Universal Credit (UC) under new government changes.

• Universal Credit and other cost of living and disability benefits will increase by 6.7% from April 2024

What is Universal Credit Managed Migration? 

The Government is moving people who are currently claiming legacy benefits such as Housing Benefit onto Universal Credit.  This is happening now. 

You don’t need to do anything until you’ve received a Universal Credit ‘Migration Letter’. 

When will I be notified I’ll be moving onto Universal Credit? 

Once you’ve received the letter, you’ll have 3 months to make your claim for Universal Credit.   

The notice tells you: 

• The need to claim UC instead 

• The ‘deadline day’ 

• What happens if you don’t claim in time 

• Other information about how to claim UC, joint claims, couples, etc. 

Will I be better or worse off? 

Every case is different.    

It may be you’ll better off under Universal Credit.    

It may be you’ll be worse off but you’ll be entitled to ‘Transitional Protection’.   Transitional Protection is a top-up payment so you do not lose out because of the introduction of Universal Credit. It means that, in cash terms, you cannot receive less than your current benefits.    

Our Tenancy Sustainability Team is here to help if you are worried you’ll be worse off.   

You can also use a benefits calculator to check Benefits calculators - GOV.UK (www.gov.uk) 

Also, you’ll keep getting your current benefit paid for 2 more weeks. You must still be eligible for your current benefit. 

This only applies if you’re getting: 

• income-based Jobseeker’s Allowance 

• income-related Employment and Support Allowance 

• Income Support 

• Housing Benefit 

You will not need to pay back the extra payments and they will not affect the Universal Credit you might get. 

When will my transitional protection end? 

Your transitional protection may end through the following means: 

• Your UC award increases to reach the same amount you were receiving from the benefits it replaced, or 

• Your UC entitlement decreases to nothing, or 

• You have a significant change of circumstance 

You can find further information here: 

What is Universal Credit (UC) transitional protection? - Turn2us 

What happens if I don’t claim Universal Credit within the 3 month window? 

We would strongly recommend you don’t miss your deadline date.  The DWP may extend (at discretion) the deadline by 1 month. 

If you claim after the final deadline: 

• Your legacy benefits will stop immediately.    

• You aren’t able to get transitional protection 

• Your Universal Credit won’t be backdated 

How do I pay my rent once I’m on Universal Credit? 

Under Universal Credit, you’ll receive benefits in one lump sum, paid monthly.  In the past your local council may have paid your Housing Benefit straight to us.  Under Universal Credit, this is paid to you.    

Most of our tenants pay by Direct Debit.  We can set up a Direct Debit with you so that when you receive your housing costs from Universal Credit, a Direct Debit is set up to collect what you need to pay in full. 

If you are on Universal Credit – you have to make a separate claim for Council Tax benefit 

You can find more info here: 

Understanding Universal Credit - Home 

Universal Credit: How to claim - GOV.UK (www.gov.uk) 

Understanding Universal Credit - Can I apply for Universal Credit? 

Tax credits are ending - Understanding Universal Credit 

Understanding Universal Credit - Before you claim 

Understanding Universal Credit - Once you've claimed 

Pension Credit for those on low income

You could get extra money to help with your living costs if you’re over State Pension age and on a low income, even if you have savings or own your own home.

Check if you’re eligible for Pension Credit

Marriage Allowance allows you to transfer 10% (£1,260) of your personal tax allowance to your husband, wife or civil partner if you earn less than the personal tax allowance, which is usually £12,570.

Find out about Marriage Allowance

You could get £69.70 a week if you care for someone for at least 35 hours a week and they get certain benefits. You do not have to be related to, or live with, the person you care for.

Check if you’re eligible for the Carer’s Allowance

A Child Trust Fund is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.

For those who hold an account but do not know the Child Trust Fund provider, or if you’re unsure whether you have one or not, we can help you find out.

Find a Child Trust Fund

Help to Save is a savings account. If you’re entitled to Working Tax Credit or you’re receiving Universal Credit, you can get a bonus of 50p for every £1 you save over 4 years.

Find out about Help to Save

Contact HMRC as soon as possible if you cannot pay your tax bill. We’re here to help, and you may be able to pay what you owe in instalments, depending on your circumstances and what you can afford.

Find out what to do if you cannot pay your tax bill on time

Credit: https://helpforhouseholds.campaign.gov.uk/

National minimum wage will rise from £10.42 per hour to £11.44 per hour for employees age 21 and over from April 2024 

Check your pay

Citizens Advice 'Help to Claim' advisers can help you with the early stages of your Universal Credit claim. You can talk to them on the phone, or online over chat.

Their advisers can help you:

• work out if you can get Universal Credit

• fill in the Universal Credit application 

• prepare for your first Jobcentre appointment 

• check your first payment is correct.

Find out more here from Citizens Advice (third-party site).

National Insurance

From 6 April 2024, national insurance rates will be cut:

• Employees will see the rate they pay on annual earnings between £12,570 and £50,270 drop from 10% to 8%. This follows an earlier cut from 12% to 10% on 6 January 2024.
• Self-employed workers will see the rate they pay on annual profits between £12,570 and £50,270 drop from 9% to 6%.

Income tax and national insurance thresholds are frozen until 2028

This means that for anyone earning between £12,750 a year – when national insurance becomes payable – and £26,000, or for those earning more than £60,000, there is no gain because of this frozen thresholds. Read more here: Spring Budget: Workers to pay less national insurance from April (moneysavingexpert.com)

Child benefit changes

Parents won't have to pay any Child Benefit back until they start earning £60,000 a year. Anyone earning above £80,000 would no longer be entitled to Child Benefit. A consultation will also consider whether to change Child Benefit eligibility to being based on household income, rather than on individual income, by April 2026.

Debt relief order fee scrapped

Debt relief orders (DROs) are granted by the Insolvency Service in England and Wales and are aimed at people on low incomes with debts of less than £30,000.

The order freezes your debt repayments and interest for 12 months, and if your financial situation hasn't changed at the end of this time, then your debts are written off.

The £90 administration fee will be scrapped from 6 April 2024.

In addition, from 28 June 2024, the maximum amount of debt you can have under a DRO will rise from £30,000 to £50,000 – meaning more people will be able to access this debt management option. Plus, you'll be able to keep your car worth up to £4,000 (up from £2,000 currently).

Universal Credit claimants will get more time to repay 'Budgeting Advance' loans

These interest-free loans are available if you're claiming Universal Credit and need funds for an emergency, such as replacing a broken cooker.

You pay them back through your regular Universal Credit payments – you get paid less until the loan is repaid. Currently, you have 12 months to repay the loan. But, for new Budgeting Advances taken out from December 2024, the default repayment period will be extended to 24 months.

Household Support Fund

The existing Household Support Fund scheme in England will be extended for six months, to September 2024.
The scheme gives local authorities funding to support vulnerable households with paying for essentials, such as energy and water bills, rent, food and more – the exact form of the support varies council-by-council. You can contact your council to find out what help it offers, whether you're eligible, and how to apply. 

Changes following the Autumn Statement 2023:

Increasing your pay

National minimum wage will rise from £10.42 per hour to £11.44 per hour for employees age 21 and over from April 2024 

Check your pay

State Pension

State Pension will increase by 8.5% from April 2024. This means a weekly increase of up to £17.35.

Universal Credit

Universal Credit and other cost of living and disability benefits will increase by 6.7% from April 2024

• Information reviewed and updated 7 March 2024 following the Spring Statement 2024. For more information, visit Martin Lewis: What the Spring Budget means for your pocket (moneysavingexpert.com)

State Pension will increase by 8.5% from April 2024. This means a weekly increase of up to £17.35.