Martin Lewis has issued an urgent warning to UK residents earning less than £35,000 per year, as they could be eligible for a payout of nearly £6,000. The financial advice expert is determined to make workers aware of the potential government financial assistance available to them through Universal Credit, which can provide crucial support for those earning below or at the national average.
According to the founder of MoneySavingExpert (MSE), around 1.4 million people earning under the £35,000 threshold are failing to claim up to £5,800 in basic Universal Credit payments that they are entitled to. This sum includes both living and housing cost assistance, and Mr Lewis has highlighted that it’s not just median earners who are missing out.
MSE, the comparison site he established in 2003, suggests that workers earning under £35,000 are most likely to miss out on payments from this comprehensive benefit, but individuals earning up to £60,000 may also not be receiving all the benefits they’re entitled to. Households with higher incomes can also qualify for financial aid if they have children and face increased childcare costs.
The money advice site also warns that individuals on similar or lower incomes might be missing out on other benefits, both means-tested and otherwise. .
In a previous appearance on Good Morning Britain, he stated: “Let’s start with Universal Credit 1.25 million people missing out on an average of around £9,600 a year. Who should be checking if they’re entitled to these benefits?
“OK, so universal credit is the catch-all benefit for people of working age to help with living and housing. Now, the crucial thing to understand here is this is not just for people out of work. 41% of universal credit applicants are people who get universal credit are in work.
“But you could be income stretching up to £40,000 a year of family income. If you’ve got Children and you’re paying for childcare and you’re paying for rent, you could still be entitled to universal credit. So that’s my rule of thumb family income below 40 grand.”, reports Gloucestershire Live.
“Get yourself on an online benefits calculator. It will take about 10 minutes. Put your details in and see if you’re entitled to this. And even if you checked a year ago because the thresholds went up in April. There are a few people not too many, but a few people who are now eligible who weren’t eligible before.”
It’s estimated 2.25 million people are not claiming £1,500 of Council Tax support per year, and approximately 530,000 people are missing out on £4,250 of Carer’s Allowance. Those eligible for Universal Credit typically include individuals who are out of work, working (including self-employed or part-time), or unable to work due to health conditions or other related issues.
While millions are eligible to claim Universal Credit assistance, not everyone can immediately do so as certain criteria must be met. Prospective claimants must reside in the UK, be 18 or over (with limited exceptions for 16 and 17 year olds), be below State Pension age, and have £16,000 or less in money, savings, and investments.
The government’s Universal Credit calculator can be used by clicking here.