10 Universal Credit loopholes that mean you can apply for extra cash support
OVER seven million people across Britain claim Universal Credit – and there are ways to get even more cash support.
The government aid was created over a decade ago to replace six legacy benefits with a monthly payment.
How much you receive will depend on certain factors, such as your age and who you live with.
Below we explain how Universal Credit works and how to apply for extra cash when claiming Universal Credit.
Payments will reduce the more you work
This benefit is designed to help those claiming to get back into work.
However, if you return to employment, the amount you get a month will be impacted.
If you start working, your Universal Credit will reduce, while if you are without work the amount you earn will increase.
For every £1 you earn your UC payment goes down by 55p.
Your income will be your wages plus your reduced UC payment.
If you claim housing benefit, have a disability or are responsible for a child, you may be able to earn more without the payment reducing.
You should use a benefits calculator to see how much you can claim.
You can claim 85% of child care back
Working parents can claim a portion of the money they spend on childcare back.
You can claim back 85% of what you paid up to a maximum of £1,031.88 for one child and £1,768.94 for two or more children.
You also might be able to get help if you need to pay the costs of your childcare upfront.
You can get an advance payment
When you first apply for Universal Credit you have to wait around five weeks to see the payment in your account.
But you can apply for an advance payment of your Universal Credit if you are in financial hardship while you wait for your first payment.
For example, if you are struggling to buy food or pay rent.
An advanced payment will see you get your money earlier but you will have to pay back what you were given.
To apply, you can contact your local Job Centre work coach or call the UC helpline on 0800 328 5644.
You can also get a budgeting advance
A budgeting advance is for people already claiming Universal Credit and used for emergencies when you’re short on cash.
For example, if your cooker broke or if you needed money to stay in your job.
The lowest amount you can borrow is £100. You could get up to:
- £348 if you’re single
- £464 if you have a partner
- £812 if you or your partner claim child benefit
You will not be eligible if you’ve earned more than £2,600 – £3,600 together for couples – in the past six months.
You will also not be accepted if you have been given an advance in the past and not paid it back.
You can find out more by visiting www.gov.uk/universal-credit/other-financial-support.
What is PIP?
HOUSEHOLDS suffering from a long-term illness, disability or mental health condition can get extra help through personal independence payments (PIP).
The maximum you can receive from the Government benefit is £172.75 a week.
PIP is for those over 16 and under the state pension age, currently 66.
Crucially, you must also have a health condition or disability where you either have had difficulties with daily living or getting around – or both- for three months, and you expect these difficulties to continue for at least nine months (unless you’re terminally ill with less than 12 months to live).
You can also claim PIP if you’re in or out of work and if you’re already getting limited capability for work and work-related activity (LCWRA) payments if you claim Universal Credit.
PIP is made up of two parts and whether you get one or both of these depends on how severely your condition affects you.
You may get the mobility part of PIP if you need help going out or moving around. The weekly rate for this is either £26.90 or £71.
While on the daily living part of PIP, the weekly rate is either £68.10 or £101.75 – and you could get both elements, so up to £172.75 in total.
You can claim PIP at the same time as other benefits, except the armed forces independence payment.
Make a claim by calling the Department for Work and Pensions (DWP) on 0800 917 2222.
Waived minimum income floor for self-employed
The minimum income floor is based on how much a person your age would earn on the National Living Wage after tax and National Insurance Contributions.
If you earn more than the minimum, the Government will calculate your Universal Credit payment using your actual earnings.
If you earn less the government will calculate your earnings based on the minimum income floor.
Alternative payment arrangements
These are set up for households who struggle with a monthly Universal Credit payment.
For example, if you are struggling to pay your rent, you can arrange for the money to be sent directly to your landlord.
Or you can be paid more frequently, such as twice a month, or request for payments to be split if you’re part of a couple.
This can be arranged in special circumstances, despicably if a claimant is in a vulnerable positions such as struggling with addiction.
Council Tax reduction
If you claim Universal Credit you could get a reduction on your council tax up to 100%.
But whether you are eligible or not depends on where you live.
It does not matter whether you own your home or rent, anyone who is struggling financially can apply.
You need to apply for a reduction via your local council’s website.
To make a claim, you will need to provide the council with information on your earnings and what pensions, benefits, allowances and tax credits you receive.
To find which is your local council, visit www.gov.uk/apply-council-tax-reduction.
In some instances your bill could be reduced by 100%, meaning you don’t have to pay anything.
You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
You can get freebies
People who claim Universal Credit can also get access to free prescriptions and dental care.
The NHS says claimants who earn nothing or had take home pay of less than £435 in their last Universal Credit assessment period could be entitled to help.
You could get your prescriptions for free and get access to dental care.
To find out more, you can visit /nhs-services/help-with-health-costs/.
Cost of living cash
People who are claiming Universal Credit may also be eligible for cost of living cash paid out by local authorities.
The aid was set up in 2021 and has since been extended by the UK government several times.
How much you are eligible for is usually based on what benefits you already receive and your financial circumstances.
The pot of cash is handed out by local councils and varies from area to area.
You could meet the criteria for the support if you are already on benefits.
However, that is not always guaranteed so it may be worth ringing up your local council to find out more.
Apply for extra benefits
If you are suffering with any long-term illnesses, you could be entitled to claim extra benefits alongside your Universal Credit.
For example, Personal Independent Payments (PIP) is a benefit for people who are under state pension age and need help with day-to-day life because of a long-term illness or disability.
The maximum amount you can get is £184.30 a week, which works out at £9,584 a year.
When you claim, you’ll need:
- Your contact details
- Date of birth
- National Insurance number
- Bank or building society account number and sort code
- Your doctor or health worker’s name, address and telephone number
- Dates and addresses for any time you’ve spent abroad, in a care home or hospital
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.