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Thread: Chancellor £1000 UC 12 month pledge.

  1. #1

    Chancellor £1000 UC 12 month pledge.

    The Chancellor has just announced an increase into the benefits system by givin UC claimants an extra £1000 per over the next 12 months. Does anyone know if that means current claimants or that it will just apply to new UC claims. Also will this apply to claimants who claim ESA still.

    I know it's soon after his announcement, but clarity on this would be appreciated.

    Thanks.
    Last edited by wowmee; 20-03-20 at 18:02.

  2. #2
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    I think he announced £1,000 extra for 12 months so that £1000 is spread over 12 months not £1000 extra a month

  3. #3
    Edited. Didn't see it. Sorry for confusion.
    Thank you

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    That's OK ........

  5. #5
    Senior Member nukecad's Avatar
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    The Chancellor announced:

    https://www.gov.uk/government/speech...on-coronavirus
    To strengthen the safety net, I’m increasing today the Universal Credit standard allowance, for the next 12 months, by £1,000 a year.

    For the next twelve months, I’m increasing the Working Tax Credit basic element by the same amount as well.
    .
    .
    I’m announcing today nearly £1bn of support for renters, by increasing the generosity of housing benefit and Universal Credit, so that the Local Housing Allowance will cover at least 30% of market rents in your area.
    That's the equivalent of an extra £19.23 a week for those on UC or WTC, and more help for private renters if their rent is above LHA.

    EDIT - They have changed it slightly in the press release:
    The standard rate in Universal credit and Tax Credits will be increased by £20 a week for one year from April 6th, meaning claimants will be up to £1040 better off.
    He said nothing about ESA or JSA though. (forgotten about again?)

    I'll keep my eyes open for any update.

    Just to note that Rightsnet, the advisers forum, has been making a few changes and have made their news pages open access as regards Coronavirus topics - so you don't need to be a member to read the latest C-19 news from a welfare/benefits perspective:
    https://www.rightsnet.org.uk/news-and-caselaw
    Last edited by nukecad; 21-03-20 at 18:01.
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    Migration from ESA to Universal Credit- Click here for information.

  6. #6
    Senior Member nukecad's Avatar
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    I think I've worked out why it's only UC (not sure about why WTC).

    An increase in UC payments for 12 months should handily cover any UC advance repayments, without making the advance look like a handout.
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    Migration from ESA to Universal Credit- Click here for information.

  7. #7
    Senior Member nukecad's Avatar
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    This surely will be challenged as discrimination against those on legacy benefits.

    PS. I wouldn't rush to close your ESA claim and claim UC instead, that can be fraught with difficulties at anytime and can only be worse at the current time.
    Let's see what transpires once the press and campaign groups notice it.

    PPS. I've emailed both CPAG and Leigh Day, (the solicitors who did the recent SDP cases and got the law changed), lets see what they come back with.
    Last edited by nukecad; 21-03-20 at 16:45.
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    Migration from ESA to Universal Credit- Click here for information.

  8. #8
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    Hi nukecad, Will this be for all UC claimants and not just the ones making new claims ? as well as those with LCWRA ?

    Thanks

  9. #9
    Senior Member nukecad's Avatar
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    I believe that it's for all UC claimants, there is nothing in the announcement saying 'new claims' it just says:
    "I’m increasing today the Universal Credit standard allowance".

    The fact that it also applies to Working Tax Credits only strengthens that view, you can't make a new claim for WTC.
    Unless you have SDP which is unlikely if you are working enough hours to claim WTC. (SDP with Housing Benefit, or coming off JSA/ESA with SDP would seem to be the only ways).

    Plus if it was new UC claims only then the system would likely go into meltdown with existing UC claimants trying to close their claim and make a new one.

    The way it's been announced it's an increase in the basic rate of UC, so applies everybody on UC.
    And remember that no one on UC is going to see this increase for at least a month, it will apply to their next monthly UC period and be paid at the end of that period.

    However we know they are good at saying one thing and then doing something else, we'll have to wait for the legislation.

    It would be unfair on current UC claimants if new UC claims suddenly got paid more than they did. - Just like it will be unfair on IR ESA, IR JSA, and IS claimants.



    PS. Note that I don't include PIP there, or indeed CB ESA, because Universal Credit is an IR benefit and IR ESA, IR JSA and IS will be Managed Migrated into it - PIP and CB ESA will not be migrated and so are a different case.
    Also remember that an IR ESA claimant in SG already gets more than a CB only SG claimant, the automatic EDP.
    Although if they do also increase ESA by increasing the Personal Allowance then they would have to do it for both CB and IR or that would be discrimination.
    Extra premiums because of circumstances are not discriminatory, two rates of Personal Allowance would be.

    TBH I think that they have got their knickers in a twist with this.
    I think they wanted to aim it at workers only, which they could have done with a new UC 'emergency' element, but were afraid of being accused of discrimination if they did that.
    By announcing that it's an increase to the standard allowance then it applies to everybody on UC working or not, and so instead (inadvertently?) discriminates against those on legacy IR benefits.
    Last edited by nukecad; 21-03-20 at 22:44.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  10. #10
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    Thanks nukecad, I certainly won’t be refusing it that’s for sure although with all that’s happening I won’t have much to spend it on.

    I totally agree that it’s unfair to those on ESA etc and I’d be annoyed if I was on ESA and this happened. I think the whole thing seemed rushed and not thought through as much as it should’ve been ( freelancers , self employed etc ). And yes let’s see how long it takes them to actually sort this out .

    Thanks for the response

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