BENEFITS BOOST
Rishi Sunak ‘to give one-off payment of £1,000’ to six million on Universal Credit
RISHI Sunak has reportedly offered to give six million people a one-off £1,000 payment as part of plans to fight off a rebellion over Universal Credit.
According to the , the lump sum would be an alternative to continuing boosted payments for UC claimants, which have temporarily been increased by £20 a week but are set to end soon.
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It was rolled out as a temporary measure for 12 months due to the pandemic, applying to all new and existing Universal Credit claimants and amounts to an extra £1,040 over the year.
But MPs have urged the government to carry on giving the extra money as the pandemic continues in to 2021.
Boris Johnson has faced growing discontent among backbenchers, particularly those from Red Wall constituencies taken from Labour, over the ending of the uplift.
The Chancellor is now offering to pay the uplift for a year in one £1,000 payment, twice as much as the sum previously reported, the Sunday Telegraph reports.
A Government source said Mr Sunak saw the one-off payment as a way of boosting the economy.
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 for 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 by applying for a Council Tax Reduction. Alternatively, you might be entitled to Discretionary Housing Payments to help 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
“One of the motivations of the Treasury is they think people will go out and spend it and help stimulate the economy,” said the source.
Mr Sunak is reportedly reluctant to continue the increase, .
He has privately warned he would be forced to hike fuel duty by five pence per litre to pay for extending the Universal Credit uplift post lockdown.
A Treasury source declined to comment on the specifics but confirmed that a one off payment was on the table.
While Sunak is keen to delay any decision , Cabinet ministers including Therese Coffey are said to be pushing for a resolution on the issue this week.
Allies of the Work and Pensions Secretary say more than half of the 5.7 million universal credit claimants have signed on since the pandemic so will see the ending of the £20 a week as a cut.
The uplift meant that for a single Universal Credit claimant, who's 25 or older, the standard allowance increased from £317.82 to £409.89 per month.
The standard allowance is set at different levels for those who are under 25 or for those who are in a couple.
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It comes as a single mum on Universal Credit has won a landmark court case to get childcare costs paid for upfront.
Sun columnist Nichola Salvato, 49, took the government to court after getting into £2,000 worth of debt trying to pay for childcare.
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