The Universal Credit (UC) scheme is a lifeline for many working-age people in the UK. It helps pay for people’s living costs whether they are working, looking for work, or sick and unable to work. The Department for Work and Pensions (DWP) makes changes to the system every year to keep it working well and adapting to changes in society and the economy. There are some important changes to know about as of August 2024, but the main parts of Universal Credit have not changed significantly.
Payment Date Adjustment
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One of the biggest changes for August is the payment plan, which has been pushed back because of the summer break. Payments that were supposed to be made on August 26 will now be made on Friday, August 23. This change is very important for users whose payment dates fall on a bank holiday because it makes sure they get their benefits right away.
No Major Changes in Amount
Looking Ahead
After the recent election victory by the Labour Party, talks about changes to Universal Credit have picked up speed. Liz Kendall, who is the new Work and Pensions Secretary, has said she wants to look at the system and focus on making work pay and better tackling poverty. But big changes aren’t likely to happen right away because they usually need a lot of time for debate.
Areas for Potential Review
There won’t be any big changes soon, but the new government could look at a few key areas of Universal Credit:
- Sanctions Regime: The current method for punishing people who don’t follow the rules for job searching may be changed to be less strict and more flexible.
- Minimum Income Floor: This policy, which limits how much a claimant can earn before their UC payments go down, could be looked at again, and any changes or removals could help people with low-income work more.
- Work Allowances: The amount of money a claimant can earn without losing their UC benefits could change. This could mean that these allowances are raised to urge people to get jobs.
- Advance Payments: The method for giving new claimants upfront credit may be looked at again, and it may be made easier to use and less risky for debt.
Future Expectations
For now, people who get Universal Credit can expect their benefits to stay the same. There won’t be any changes to the qualifying requirements or the way payments are calculated right away, other than the bank holiday adjustment. But the DWP is expected to give more information about the upcoming review, such as what areas will be looked at and when any changes might happen.
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As the Labour government starts its review, the UC system could be changed in big ways. This is especially true for policies that affect how work affects welfare and efforts to reduce poverty. For claimants, it will be important to stay educated and ready for possible changes.
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