
God. The waiting game is finally over. After months of promises about benefit increases, actual real money is landing in bank accounts THIS WEEK for millions of Universal Credit claimants.
I've been tracking this story since January when teh DWP first announced the rates would go up, and honestly, it's about damn time. My neighbor Sheila (single mum of two) texted me yesterday: "Just checked my account and there it was! Not life-changing but helps with the electric bill at least."
When exactly will you see this mythical cash?
Tuesday, May 13th is the magic day for many. But here's where it gets annoyingly complicated...
If your assessment period started before April 7th, you'll see the higher payment THIS MONTH. Lucky you.
Started on or after April 7th? Well, you're stuck waiting until June. Sorry.
This is because Universal Credit works in arrears - a fancy way of saying they pay you a month behind. I spent three hours on hold with the benefits helpline back in 2018 trying to understand this system. Never getting that time back.
Show me the actual numbers!
Let's break down what's actually hitting your account. The standard allowance is going up by different amounts depending on your situation:
If you're single and under 25, you're now getting £316.98 monthly - a whopping £5.30 more than before. Life-changing? Hardly. But it'll cover a cheap takeaway, I guess.
Single and over 25? Your payment rises to £400.14 (up £6.69).
Couples under 25 will receive £497.55 (an £8.32 increase), while couples where at least one person is 25+ get £628.10 (up £10.50).
Parents and carers get a slightly better deal
The first child element (for kids born before April 6, 2017) increases to £339.00 monthly.
Each additional child gets you £292.81 - up £4.89.
If you're caring for someone at least 35 hours weekly, the carer's element rises to £201.68 (a £3.37 increase).
I spoke with Jamie last week, who cares for his elderly mum while trying to work part-time. His response: "Better than nothing, but doesn't even cover the price increase on her medications."
Working while claiming? The work allowance changed too
If you're one of those superhuman people managing to work while navigating the benefits system (seriously, respect), there's a small change to how much you can earn before your benefits start reducing:
Higher work allowance (no housing help): £684.00
Lower work allowance (with housing help): £411.00
Listen. These increases aren't going to transform anyone's financial situation overnight. The cost of living is still crushing most families I know. But an extra tenner is an extra tenner when you're counting every penny.
Am I even eligible for this stuff?
Fair question.
Universal Credit eligibility boils down to a few basics: you need to be over 18 (with some exceptions for 16-17 year olds in special circumstances), under pension age, have savings under £16K, and live in the UK.
Your income (or lack thereof) is obviously the main factor. And if you're applying as a couple, your partner's finances get thrown into the mix too - even if they're not personally applying.
EU citizens need settled or pre-settled status these days. Brexit... don't get me started.
Applying is less painful than it used to be
Back in 2019, I helped my cousin apply and it took us nearly 3 hours with multiple website crashes. The system seems slightly less terrible now.
You'll need your National Insurance number, some ID (passport or driving license), bank details, and info about your housing and income situation. The whole process happens online at gov.uk/universal-credit.
I feel stupid now for not mentioning this earlier, but if you're unsure what you might get, use the government's benefits calculator. It's free adn surprisingly straightforward.
Meanwhile, pension savers are getting actual money back
While we're talking about government money, here's something interesting... Over 15,000 pension savers just got refunds averaging £2,881 each after being overtaxed when they took money from their pension pots.
HMRC handed back £44 million in just three months. (Where was this generosity when I got slapped with that £4K tax bill in 2021?)
They've apparently fixed the system this month to stop retirees getting hit with ridiculous emergency tax bills when making withdrawals.
Too little, too late for many... but at least they're finally addressing it.
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- The average return on investment for the S&P 500 over the past 90 years is about 10% per annum.
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