A NEW benefits change could see millions of claimants lose out as the government looks to boost growth across the British economy.
Jeremy Hunt has warned fit and able benefits claimants who do not look for work could be hit with financial penalties.
These changes come ahead of next week's Autumn statement and will see prescriptions and legal aid being cut off as part of the crackdown if you’ve not turned up for work appointments or interviews.
Digital trackers will be used to track claimants' attendance at job fairs and interviews as part of the harsher regime.
The Chancellor said: “These changes mean there’s help and support for everyone – but for those who refuse it, there are consequences too. Anyone choosing to coast on the hard work of taxpayers will lose their benefits.”
Read our benefits blog below for the lastest news and updates…
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By Henry Moore
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.
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By Henry Moore
What to expect from the Autumn Statement?
It's that time of year again and Jeremy Hunt will soon give his Autumn Statement, outlining the government's plans for the British economy in the year to come.
From taxes, spending and a new benefits crackdown Mr Hunt is set to announce a slew of changes.
Find out what we expect to be announced below.
CASH COUNTDOWN What to expect from 2023 Autumn Statement – from benefits to taxes
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By Henry Moore
You could lose freebies
The new changes are designed to make sure fit and able benefits claimants are always looking for work.
If you are deemed to not be doing so you could lose some of the freebies that come with benefits.
These include free prescriptions and legal aid.
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By Henry Moore
When is the Autumn Statement?
In September 2023, Chancellor Jeremy Hunt confirmed that the highly-anticipated Autumn Statement will take place in the Commons on Wednesday, November 22.
The speech usually takes place around midday.
In the statement, the government outlines its plans for tax hikes, cuts and things like changes to the minimum wage.
It also sets out how much will be spent on key public services.
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By Henry Moore
When will the changes be implemented?
Speaking to The Sun, the Chancellor said the changes mean a new “social contract” between the strivers and those out of work.
He said the system needs to be “rebalanced” in favour of taxpayers funding the benefits demanding something in return.
The changes, which will kick in next year, are part of an overall £2.5 billion plan aiming to help more than 1 million look for work and stay there.
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By Henry Moore
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.
Find out more here.
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By Henry Moore
'Next generation of welfare reforms'
Welfare Secretary Mel Stride said: “We are rolling out the next generation of welfare reforms to help more people start, stay and succeed in work. We know the positive impact work can have, not just on our finances, but our health and wellbeing too.
“So we are expanding the voluntary support for people with health conditions and disabilities, including our flagship Universal Support programme.
“But our message is clear: if you are fit, if you refuse to work, if you are taking taxpayers for a ride – we will take your benefits away.”
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By Henry Moore
How much is Universal Credit?
Universal Credit payments are made up of a standard allowance and then various additional payments that depend on your circumstances.
This is how much you will get as your standard allowance each month:
- Single, under 25 – £292.11
- Single, 25 or over – £368.74
- Couple, joint claimants both under 25 – £458.51 (for both)
- Couple, joint claimants, one or both 25 or over – £578.82 (for both)
You may also get additional payments depending on your circumstances.
Are you entitled to benefits? Here's how to check…
A number of charities have benefits calculators that you can use to work out if you are entitled to any extra help.
This includes:
- Turn2Us
- Policy in Practice
- EntitledTo
It’s worth looking into as if you do qualify, it could make you eligible for the £900 Cost of Living payment too.
Before you do use such a tool, you should make sure you have all the relevant paperwork to hand, including bank statements and any information on pensions and existing benefits.
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By Henry Moore
How much can you get in pension credit?
There are two parts to the benefit and pensioners can be eligible for one or both parts – here are the current rates for the tax year:
- Guarantee credit – tops up your weekly income to a guaranteed minimum level. This is £201.05 a week if you’re single and £306.85 a week for married couples.
- Savings credit – provides extra money if you’ve saved money towards retirement. You can get an extra £15.94 a week for a single person or £17.84 a week for a married couple.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
Which benefits are means-tested?
The means-tested benefits are:
- Universal Credit
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support
- Pension credit
- Tax credits (child tax credit and working tax credit)
- Housing benefit
- Council tax support
- Social fund (sure start maternity grant, funeral payment, cold weather payment)
To be eligible to receive any of these benefits, you must be able to demonstrate that your total capital is less than a certain amount.
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.
- Money Helper – 0800 138 7777
- Citizens Advice – 0808 800 9060
- StepChange – 0800 138 1111
- National Debtline – 0808 808 4000
What has the Chancellor said?
Mr Hunt said: “We’re serious about growing our economy and that means we must address the rise in people who aren’t looking for work – especially because we know so many of them want to and with almost a million vacancies in the jobs market the opportunities are there.
“These changes mean there’s help and support for everyone – but for those who refuse it, there are consequences too. Anyone choosing to coast on the hard work of taxpayers will lose their benefits.”
Speaking to The Sun, the Chancellor added the changes mean a new “social contract” between the strivers and those out of work.
He said the system needs to be “rebalanced” in favour of taxpayers funding the benefits demanding something in return.
Jeremy Hunt announces benefits crackdown
Jeremy Hunt has announced a slew of changes that could see benefits claimants lose freebies if they do not pursue work.
The Chancellor vows fit and able Brits who refuse to take up work will be hit with financial sanction.
The tough new plan comes ahead of next Wednesday’s Autumn Statement as part of a major back to work drive with a record high 2.6 million people long-term sick.
Millions of unemployed Brits to LOSE benefits under tough new plans
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