Benefits freeze to end in 2020 – which payments are affected and will you be better off?
BENEFITS will increase for the first time in four years from April 2020, with claimants getting a 1.7 per cent boost to their payments.
But, which benefits are affected and will you actually be better off after benefits increase?
Most working age benefits have been frozen since 2016, meaning that payments have been increased each year in line with inflation.
The last time benefits increased was in 2015, and payments have been stayed at that level ever since.
George Osborne announced the decision when he was Chancellor, claiming that the measure would save the government £3.9bn a year.
The freeze was due to end in 2020, and the government has now confirmed that this will happen with 10million Brits getting a benefits hike.
Which benefits are affected?
Most working-age benefits have been frozen since 2016, and will now rise by 1.7 per cent from April 2020.
Universal Credit was part of the freeze, and so claimants will see their payments increase.
Those still claiming benefits from the old system - known as legacy benefits - will also get more money.
Legacy benefits include job seeker's allowance, employment and support allowance, income support, housing benefit, child tax credits, working tax credits and child benefit.
You can’t make a new claim for any of these benefits anymore, but many people who haven’t yet moved to Universal Credit are still claiming them.
Pensions, maternity pay and disability benefits were excluded from the freeze.
The state pension was excluded from the freeze as its yearly increase is determined by the “triple lock” rule which links the increases to inflation.
But, the government has announced that the state pension will increase by 3.9 per cent in April 2020, much higher than the current inflation rate.
What to do if you have problems claiming Universal Credit
IF you're experiencing trouble applying for your Universal Credit, or the payments just don't cover costs, here are your options:
Apply for an advance - Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it's a loan which means the repayments will be automatically deducted from your future Universal Credit payout.
Alternative Payment Arrangements- If you're falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you're part of a couple.
Budgeting Advance - You may be able to get help from the government to help with emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.
Cut your Council Tax - You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren't enough to cover your rent.
Foodbanks - If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the
How much will benefit payments go up by?
The amount of extra cash you’ll get after the benefits increase will depend on how much you’re claiming.
For example, a housing association tenant living with their partner and two children could be entitled to £1,707.34 a month under Universal Credit if they are both out of work.
When the benefits freeze ends, that monthly payment will increase to £1736.36, meaning an extra £29.02 each month.
The basic state pension is set to rise by £5.05 a week to £134.25, while those on the full flat rate pension introduced in 2016 will see payouts increase by around £6.60 per week to £175.20
Will I be better off?
Despite the increase, the majority of people claiming benefits will still be worse off after the freeze.
The freeze cut the real term earnings of those on benefits by 6 per cent over four years, and families lost around £580 on average as a result, according to the .
In fact, the real value of basic out-of-work support is currently lower than it was in 1991-92, despite the economy having grown by more than 50 per cent since then.
So, even though the prices are rising, the increase won’t reverse the loss in benefits experience by claimants since 2016.
The pension increase is more than double the current inflation rate of 1.7 per cent, meaning pensioners are getting a real term increase in their earnings.
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The Sun wants to Make Universal Credit Work
UNIVERSAL Credit replaces six benefits with a single monthly payment.
One million people are already receiving it and by the time the system is fully rolled out in 2023, nearly 7 million will be on it.
But there are big problems with the flagship new system - it takes 5 weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.
And while working families can claim back up to 85 per cent of their childcare costs, they must find the money to pay for childcare upfront - we’ve heard of families waiting up to 6 months for the money.
Working parents across the country told us they’ve been unable to take on more hours - or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.
It’s time to Make Universal Credit work. We want the Government to:
- Get paid faster: The Government must slash the time Brits wait for their first Universal Credit payments from five to two weeks, helping stop 7 million from being pushed into debt.
- Keep more of what you earn: The work allowance should be increased and the taper rate should be slashed from 63p to 50p, helping at least 4 million families.
- Don’t get punished for having a family: Parents should get the 85 per cent of the money they can claim for childcare upfront instead of being paid in arrears.
Together, these changes will help Make Universal Credit Work.
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