In a matter of weeks, DWP benefit claimants will see an uplift in their regular payments. The Government has confirmed that all state benefits will be going up as part of annual increases.
The new rates will kick in from April 7, the start of the new financial year. Benefits are set to rise by 1.7 percent, based on last September’s inflation rate.
Universal Credit for a single person over 25 will increase from £393.45 a month to £400.14. A range of other benefits including Housing Benefit, Income Support and Employment and Support Allowance will also see an increase.
UC is gradually replacing a number of other benefits. The increase to rates is a recognition of inflation and rising prices in shops, aiming to ensure claimants don’t become worse off.
However, it follows claims that Universal Credit is not enough to live on. Despite misconceptions around state benefits, about 40 percent of UC claimants are actually in work but just don’t earn enough to make ends meet, reports Yorkshire Live.
Research conducted by Trussell and the Joseph Roundtree Foundation (JRF) found that the standard rate of Universal Credit (UC) falls short of the weekly amount needed to cover food, utility bills, clothing, travel, phone and internet use, and other basic costs.
Iain Porter, JRF senior policy adviser, has shed light on the harsh reality for those depending on Universal Credit: “Many people receiving Universal Credit are working but employment doesn’t protect them from going without essentials like food, heating and vital household bills. Around two-thirds of working-age adults in poverty are in a working household.
“The basic rate of Universal Credit is not set according to any independent calculation of the cost of essentials and is currently just £91 a week. This is already inadequate to meet people’s needs but it is sometimes reduced further, such as to repay debts to the DWP.”