Some of the changes that the government has made to Universal Credit will make some people financially better off. From April 2019, certain households who are working could receive more money under Universal Credit.
The reason for this is because the government has increased the work allowance. This is the amount of money someone can earn before it is taken into account in the assessment of their Universal Credit claim.
For households with a qualifying child or where someone has a limited capability for work, the monthly earning allowance increases on the 1st April from £198 per month to £287 per month – if they claim housing costs. If someone doesn’t claim housing costs e.g. lives with parents, then the amount of earnings disregarded is increasing from £409 per month to £503 per month.
What this basically means is that the first £287 per month that someone earns won’t affect their Universal Credit award. Anything earned over this amount will reduce the Universal Credit award by 63p for every £1 earned (known as the benefit withdrawal rate).
This means that if someone is working now, and gets help with their housing costs, from April their Universal Credit award will increase by £56.07 per month.
If you want to find out whether you would be better off on Universal Credit, you can complete an online benefit calculator where you enter details about your own personal www.turn2us.org.uk or www.entitledto.co.uk .