Universal Credit changes as people with six conditions could see lower payments

Summary

Labour MPs and disability campaigners have raised concerns that some disabled benefit recipients could see a reduction in payments. Officials say that current recipients of Universal Credit will be protected from any changes

Source: Cambridgeshire Live

(0)

AI News Q&A (Free Content)

This content is freely available. No login required. Disclaimer: Following content is AI generated from various sources including those identified below. Always check for accuracy. No content here is an advice. Please use the contact button to share feedback about any inaccurate content generated by AI. We sincerely appreciate your help in this regard.

Q1: What is the Universal Credit system, and how does it integrate with existing benefits in the UK?

A1: Universal Credit is a means-tested social security payment in the UK that replaces and combines six benefits for working-age households with a low income. These include income-related Employment and Support Allowance, income-based Jobseeker's Allowance, Income Support, Child Tax Credit, Working Tax Credit, and Housing Benefit. It was introduced to streamline the benefits system and avoid unemployment traps by tapering payments as recipients move into work.

Q2: How might recent changes to Universal Credit impact disabled individuals' payments?

A2: Recent changes to Universal Credit have raised concerns among Labour MPs and disability campaigners about potential reductions in payments for disabled individuals. While officials assure that current recipients will be protected, new health element claimants may receive reduced support, which could exacerbate financial challenges for disabled individuals facing higher living costs.

Q3: What are the key features and criticisms of the Universal Credit rollout since its inception?

A3: Since its introduction in 2010, Universal Credit has faced issues such as high implementation costs, initially projected at £2 billion but later exceeding £12 billion, and a problematic IT system. Critics highlight the five-week waiting period for the first payment, leading to financial strains like rent arrears for claimants.

Q4: What recent legislative changes have been made to the Universal Credit system?

A4: The Universal Credit Act 2025 introduces important changes to disability benefits, including increasing the standard allowance but altering support for new health element claimants. These changes are scheduled to take effect in April 2026 and have been criticized for potentially increasing poverty among disabled individuals.

Q5: How does Universal Credit aim to prevent unemployment traps?

A5: Universal Credit aims to prevent unemployment traps by tapering off benefits as recipients transition into work, rather than abruptly stopping payments. This approach is designed to encourage employment by ensuring individuals do not face a 'cliff edge' in financial support as they gain employment.

Q6: What are the eligibility criteria and potential reductions for Universal Credit recipients with savings?

A6: Eligibility for Universal Credit is affected by savings. If a recipient has over £6,000 in savings, their payment is reduced by £4.35 for every additional £250 up to £16,000. This reduction reflects the system's aim to target financial support to those most in need.

Q7: What provisions exist for children and disabled dependents under Universal Credit?

A7: Universal Credit provides additional monthly amounts for children and disabled dependents. For instance, a first child born before April 2017 receives £339 monthly, while subsequent eligible children receive £292.81. For disabled children, additional support is provided, ensuring that families with dependents receive adequate assistance.