Benefit payment rates recently increased
Changes to the DWP system could result in thousands of Universal Credit claimants receiving an extra £28 payment. The scheme is already running in specific regions, with the potential for nationwide rollout across the UK.
Policy experts recently addressed the Work and Pensions Committee regarding measures to combat child poverty. One proposal put forward by the representatives was to extend the Scottish Child Payment scheme. This scheme provides £28.20 weekly to those on qualifying benefits for each child under 16 in their care.
The payments are issued every four weeks, meaning claimants receive £112.80 each four-week payment cycle for each child. Only one individual can receive the payment for a specific child.
Claiming this extra support does not impact any other UK or Scottish Government benefits you receive, nor those received by other members of your household.
Those on Universal Credit and income-based Jobseeker’s Allowance (JSA) are eligible to claim the additional payment. You may also qualify if you are a single claimant receiving any of these benefits:
- Pension Credit
- Income Support
- Income-related Employment and Support Allowance (ESA).
If your partner is named on any of the above three benefits while you are not, your partner can apply for the payment.
‘Very effective’
Edward McPherson, senior consultant at policy consultancy group WPI Economics, told the committee that the payment has been effective as it has “demonstrably reduced child poverty rates in Scotland”. He said it could also have a positive impact if it were expanded across the UK.
The expert said: “When you model an extension of that to the UK, it is very effective as well.” Many benefit payment rates increased in April.
The standard allowance for Universal Credit has increased to:
- Claimants single and under 25 – £338.58
- Claimants single and 25 or over – £424.90
- Claimants living with a partner and you’re both under 25 – 528.34
- Claimants living with a partner and either of you are 25 or over – £666.97.
You can also get an additional £303.94 monthly for each child living with you. This represents a recent policy shift, as the support was formerly capped at your first two children, but now applies to every child in your care, regardless of your family size.
It’s also worth checking your eligibility for Child Benefit, which provides £27.05 weekly for your eldest or only child, and £17.90 weekly for each additional child. Once either you or your partner individually earns above £60,000, you’ll need to repay a portion of your claim.
The repayment amount rises in line with your personal income. You have to pay back the full sum once your annual earnings reach £80,000.
