Universal Credit news — DWP issues warning to claimants expecting £301 cost of living payment – check if you’re affected
THE Department for Work and Pensions (DWP) has issued a warning to those who are expecting the first cost of living payment this month.
Millions of households on certain benefits, including Universal Credit, will receive the £301 directly into their bank accounts between April 25 and May 17.
However, the DWP has now clarified that simply being eligible for means-tested benefits is not enough to receive the payment.
According to the government department, you will be excluded from the first round of support if your benefit was reduced to £0 during the qualifying period - between January 26, 2023 and February 25, 2023.
There are a number of reasons claimants won't meet the eligibility criteria for the cost of living payment, including the following: You received more than one payment of earnings in your Universal Credit assessment period, your or your partner’s earnings went up, your or your partner's savings increased, you started receiving another benefit or you were sanctioned because you did not do something you agreed in your claimant commitment.
Read our Cost of Living blog below for the latest updates...
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All of the latest cost of living updates can be found here.
How does inflation impact prices?
Inflation doesn't impact prices, rather it's a measure of how prices have changed over the past year.
When it goes up, it means prices on everyday items, essentials, fuel and bills are higher.
That means millions of households' budgets are squeezed.
The latest publication looked at prices in the 12 months to March 2023 compared to the previous year.
The ONS said inflation of food and non-alcoholic drinks rose by their fastest level in more than 45 years at 19.2%, with the cost of everyday essentials still ramping up.
The largest contributor to the rise in food inflation was bread and cereals, for which average prices rose by 19.4% in the year to March 2023.
Phones Direct offering low price phone contract
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Mobiles Phones Direct is currently offering an impressive iPhone deal on the Three network.
You can pick up up an 'as new' iPhone 12 with 100GB of monthly data for just £24 per month.
That's an astonishingly low monthly rate on a phone that was Apple's flagship just a couple of years ago, but if that upfront cost is too high for you, it's worth looking at the .
Apple iPhone 12 (refurbished, as new), 100GB data, £24 per month, £69 upfront, Three -
The clever travel trick to grab a holiday bargain as airfares rise
Holiday makers can grab a bargain this summer thanks to a brand-new feature introduced by flight comparison website Skyscanner.
With airfares on the rise, many are looking to find creative and reliable ways to cut back on flight prices and save some much needed cash.
Dubbed the ‘savings generator’, the new tool is designed to help travellers nab the cheapest flights.
As reported by , the feature helps customers identify the best times to book a flight as well as the best day to fly.
Jemma Porter of Skyscanner said: “According to our research, 19 per cent of people think that the cost of flights is the most important consideration when booking a trip.
“So, we’re putting our data to good use by helping you find the best time to book.”
Credit: Getty What is the Household Support Fund?
The Household Support Fund was launched in October 2021 to help Brits pay their way through winter amid a cost of living crisis.
Councils up and down the country got a slice of the £500million funding available to dish out to Brits in need.
The help you can get varies depending on who your local council is, as well as your personal situation.
But you may be able to get free cash and vouchers to help pay for things like heating your home or to cover the costs of your weekly grocery shop.
If an applicant is already receiving benefits, these will not be affected by the HSF.
And, you do not need to be getting benefits to receive vouchers or funds from the HSF.
Can I work while on Universal Credit?
The government says that the flagship welfare system has been designed to help people get back into work.
This means you can work as many hours as you want while claiming benefits but it may reduce the amount you get.
This is due to your wages will be subject to the taper rate: for every £1 you earn, your Universal Credit payment will go down 55p.
If you’ve got a job and a child who is dependent on you or you can’t work due to an illness then you might be entitled to a work allowance.
This is the amount you can earn every month before the taper rate kicks in.
If you get help with your housing costs then this will be set at £344, or £573 if you don’t.
If you don’t get a work allowance then all of your salary is subject to the taper rate.
What temperature to run your washing machine at to save money
To save on your energy bills, experts suggest lowering the temperature at which you wash clothes.
You’ll still be getting fresh and clean clothes if you switch from a 40C wash to a 30C one and it could save you £12 a year on average, according to Energy Saving Trust.
If you use your washing machine a lot, you’ll save even more if you lower the temperature.
Uswitch energy expert Will Owen previously told The Sun: “Use a cold water or 30C cycle where possible. It’s only for particularly dirty clothes, bad stains or underwear that you are likely to need warmer temperatures.”
How to reduce the cost of your supermarket shop
At a time when prices are sky high, households will be looking for ways to cut costs on their supermarket shop where they can.
Here we share a number of savvy saving tips to help you cut the cost at the till – and save some much-needed cash.
- Know when to shop – Heading to the shops when products are marked down and bright yellow discount stickers are applied can save a fair bit of cash.
- Hunt for yellow sticker bargains – You should also keep an eye out for yellow stickers to get the best food bargains.
- Make the most of loyalty schemes – Here we revealed the best and worst supermarket loyalty schemes including Asda, Tesco, Sainsbury’s and Morrisons.
- Shop wonky – Strange-shaped fruit and vegetables taste the same but cost less.
- Make a list – One of the most common mistakes shoppers make is going out underprepared.
Credit: Getty Five top tips to avoid wasting diesel and petrol while driving
With the cost of living crisis continuing to take a toll, the increased cost of fuel is a concern for most drivers.
Handily, insurance experts at have rounded up five tips to help motorists avoid wasting fuel unnecessarily while driving.
- Watch your speed
- Watch your gears
- Remove weight and reduce drag
- Maintain your tyres
- Avoid travel hotspots
You can find more details on each of the above top tips here.
People on Universal Credit and benefits can slash key household bill
Those on Universal Credit and legacy benefits can get cheaper bills by filling in a simple form – and here’s how.
Benefit claimants can save up to £256 a year on their broadband bills if they take out little-known social broadband tariffs.
Posting on the Extreme Couponing and Bargains UK Facebook group, one person said: “Lots of people maybe already know this but I only recently found out so this is for others like me who didn’t know.
“A lot of companies are offering cheaper broadband for people on Universal Credit and Pension Credit but not for those on legacy benefits waiting to be migrated over to Universal Credit.
“Did a web search and came across Vodafone which have an essentials package for just £12 per month.
“Not only can those on legacy benefits like working tax credits apply but also those claiming PIP.
“You fill out a form online then they call you a few days later to check you’re eligible and take your details.”
Find out more here.
Major high street bank giving customers £200 for free
HSBC is giving new customers free cash if they switch to the provider.
The bank is offering customers £200 if they switch from a different provider to either its HSBC UK Advance or Premier Bank accounts.
The offer is available now and there is currently no end date in sight.
Any customers who choose to switch will need to do so using the Current Account Switch Service (CASS) to qualify for the £200 cash.
Universal Credit calculators
Trying to work out how much Universal Credit you can get can be overwhelming.
If you need help working out how much you may be entitled to, the good news is there are a number of free calculators that you can use to help make the process easier and provide you with an estimate.
These include:
Households are adding an extra £500 million to their energy bills each year by one simple mistake
Households are adding an extra £514 million pounds to their energy bills each year by making one simple mistake.
A study of 2,000 adults found most households (86%) are guilty of leaving an average of eight items on standby at any one time – with TVs, microwaves and washing machines being among the biggest offenders.
This is costing an extra £20 a year, or £513,766,000 across all UK households, which generates more carbon emissions than two million return flights from London to Spain.
Find out more, including the average Brit’s energy use here.
Get cheap food with this handy app
Too Good To Go connects hungry Brits with food chains and supermarkets that have leftover food which is set to be thrown away.
With Too Good To Go, shoppers can buy the food at a discounted price, making sweet savings.
You pay through the app and get given a slot before closing time to go and pick it up.
What you get will depend on your location and what has sold at that shop or café that day.
The app is free to download so it’s always worth checking what’s available – you never know what you could get.
Can I appeal a sanction?
If you think you've been sanctioned unfairly you can contact the DWP and ask for a "mandatory reconsideration".
You have one month from when you were notified about the sanction to do so.
If you've been sanctioned unfairly, the first thing you must do is check the level of sanction and for how long your money has been reduced.
You'll then need to contact the DWP for a mandatory reconsideration if you think they've made the wrong decision.
Citizens Advice says you should have been told:
- Why you’ve received a sanction
- The level of sanction you’ve been given
- How long the sanction will last
- How much money will be taken away from your Universal Credit payment
- The date the sanction decision was made
Find out more here.
Cost of Living payment dates
- £301 – First Cost of Living Payment – during Spring 2023
- £150 – 2023 Disability Payment – during Summer 2023
- £300 – Second Cost of Living Payment – during Autumn 2023
- £300 – 2023 Pensioner Payment – during Winter
- £299 – Third Cost of Living Payment – during Spring 2024
Why has your Universal Credit payment stopped?
Failing to report a change in your circumstances can lead to your Universal Credit payments being halted.
This includes a new mobile number or email, a new job or house and a change in your savings.
But there are other scenarios where this might happen to you. This includes:
- not applying or looking for work
- refusing a job offer
- quitting your job without a good reason
- being late to appointments and interviews
- not taking a job in a different sector
You can appeal a sanction if you think you’ve been treated unfairly by the DWP by asking for a “mandatory reconsideration.”
Families can get free milk from supermarkets
Parents with young children may may qualify for help to get free milk under the Heathy Start scheme.
The government scheme gives people who are more than 10 weeks pregnant or have a child under four money to help them buy healthy food and milk.
It is in place to help people on lower incomes afford the basics, and to qualify, you usually have to be receiving another kind of benefit such as Universal Credit or income-based Jobseeker's Allowance.
Find out more, including eligibility requirements here.
Credit: Getty Free debt advice
If you’re in debt there are plenty of services you can take advantage of and they offer free advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
- – 0800 138 7777
- – 0808 800 9060
- – 0800 138 1111
- – 0808 808 4000
How much 50 everyday supermarket essentials have increased in price revealed
New data has revealed food prices are rising faster than other items, leaving shoppers facing higher costs at the supermarket till.
The price of milk, cheese and eggs combined has risen by 30% in the last twelve months.
Six eggs cost the average shopper just 93p last March but now cost £1.23 - up 32%.
Shoppers paid £1.31 for the average 250g block of butter in March 2022 but the same amount now costs £1.60 - up 23%.
The average price of bread has also shot up from 78p a loaf in March last year to 97p today.
Take a look at how much other everyday supermarket essentials have risen here.
How can I cut my grocery costs?
As food prices soar, many shoppers are looking for ways to cut costs at the till.
Here we take a look at a number of ways you can save on your groceries when doing your next shop.
- Research what you need before you go.
- One shopper ditched going to supermarkets altogether in favour of their local wholesaler, that way they could stock up in bulk, at lower prices.
- Pay attention to the unit costs.
- Sign up for a supermarket loyalty card.
- Cash in on reduced foods like yellow sticker bargains.
- Timing your shop to stock up just as items are discounted on the shelves can help you get the best bargains.
The Sun’s top tips for getting your mortgage application approved (5/5): Consider how much deposit you can afford
The more money you have, the less money you'll need to borrow and the more attractive you are to a lender.
This is because the loan-to-value ratio is smaller and makes you less of a risk to lenders.
So if you've managed to save more money than expected, stick to your budget rather than take out a bigger mortgage.
And if you're in a position to be able to put down a bigger deposit, this could help you in the long run.
Nicholas Mendes, technical manager at broker firm John Charcol, told The Sun: There is an especially large jump in interest rates for borrowers with lower deposits like 5% or 10%.
"Therefore, if you think you could afford to pay a slightly higher deposit of at least 10% of the overall property value, then it could be very beneficial when it comes to securing a cheaper rate and therefore lower payments."
Meanwhile, here are six first-time buyer schemes where you only need a deposit as low as 1%.
Plus, we round up six things to do now if your fixed-rate mortgage is coming to an end.
The Sun’s top tips for getting your mortgage application approved (4/5): Get a credit card
While it's not impossible for you to get a mortgage with a poor credit score, you'll be paying over the odds in interest.
You're better off holding out for a few months while you try to improve it.
One way is to continue to use small amounts of credit, like on a credit card.
Nicholas Mendes, technical manager at broker firm John Charcol, told The Sun: "It may seem strange to suggest that borrowing money will help prove to lenders that you can afford a property, but this is an important tip due to the way many of the biggest lenders assess mortgage applications.
"Regularly using and repaying a credit card is a great way to boost your credit score and demonstrate to lenders that you can handle credit."
The Sun’s top tips for getting your mortgage application approved (3/5): Bank statements
You should be aware that lenders may want to see your bank statements.
It is most likely that they will want to see statements from the last three months, but some may ask for statements dating even further back.
Nicholas Mendes, technical manager at broker firm John Charcol, told The Sun that there are a few things lenders will be looking for specifically.
He said: "You will want to make sure that you haven’t exceeded your overdrafts or had any of your payments bounce back in this timeframe.
"The lender will also be looking at who you are paying, so you don’t want to be spending on things that lenders will disapprove of."
The Sun’s top tips for getting your mortgage application approved (2/5): Make sure you are on the electoral roll
The cost of living crisis, more households defaulting on their loans and volatility in the global banking sector have led to lenders are becoming more cautious about approving mortgage applications.
The Sun has spoken to Nicholas Mendes, technical manager at broker firm John Charcol, to find out what you can do to get yourself mortgage ready.
Getting on the electoral register will help with your credit score.
Nick said: "Being on the electoral roll counts a fair bit towards identifying who you are and your credit score.
"This may simplify the process of providing proof of address and ID to your mortgage lender and could prevent you from having to go through additional identity checks before your application can progress.
Not being on the electoral roll can be viewed as a negative point by lenders, Nick added– even if the reason is that you don’t vote.