God. The wait is finally over for thousands of families on Universal Credit who've been watching everyone else get their benefit increases while they're left wondering when teh hell they'll see a penny.
Starting tomorrow (May 13), many UC claimants will finally see that promised cash boost hit their accounts. About bloody time, if you ask me.
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Why has it taken so long?
I was chatting with my neighbor last weekend (she works for a benefits advice charity) and she explained why this whole thing is such a mess. Turns out, while the Department for Work and Pensions bumped most benefits up by 1.7% back in April, Universal Credit works on these rolling monthly assessment periods.
So here's the deal.
If your assessment period started before April 7, you'll see your first increased payment tomorrow. But if it started after that date? You're stuck waiting until June. I know someone who's literally marking the days off on their kitchen calendar waiting for this increase. Poor woman.
Show me the money!
Let's talk actual figures. My editor bet me £10 I couldn't make sense of all these numbers, but here goes:
For single folks under 25, the standard allowance is rising from £311.68 to £316.98 monthly. Not exactly life-changing, is it? If you're single and over 25, you'll get £400.14 instead of £393.45.
Joint claimants under 25 will see £497.55 (up from £489.23), while those where one or both are over 25 get £628.10 (previously £617.60).
What about the kids?
Parents, listen up. This is where things get slightly more substantial:
For your first child born before April 6, 2017, you'll now get £339 monthly instead of £333.33. Any child born after that date, or additional children, means £292.81 (up from £287.92).
I spent hours in 2018 helping my sister figure out her entitlements when she had her second baby. The system is ridiculously complicated. Her response when I shared these new figures: "That barely covers a week of nappies."
The weird timing thing everyone forgets
Universal Credit always pays in arrears. This tripped me up when I was claiming back in 2019 after my contract ended unexpectedly.
Even though the increase officially kicked in from April 6, you only get the new rates after your first complete assessment period in the new tax year. I feel stupid now for not realizing this sooner, but nobody ever explains these things clearly.
It's like they deliberately make it confusing.
Are you eligible? (Or: How to join this thrilling rollercoaster)
If you're wondering whether you can claim Universal Credit, it basically comes down to being over 18, under State Pension age, having less than £16K in savings between you and your partner, and living in the UK.
EU, EEA or Swiss? You'll need settled or pre-settled status. I've seen people caught out by this one... my former colleague spent £4K on immigration advice after Brexit just to maintain his benefits eligibility.
The number of children doesn't affect whether you can claim, but it does impact how much you get.
Applying is fairly straightforward online at gov.uk/universal-credit – just have your ID, bank details, and income/housing info ready. No internet? Call 0800 328 5644.
I remember when I applied back in the day. Took me three attempts because the website kept crashing. Not exactly a confidence-inspiring start to what was already a stressful experience.
But hey, at least some families will finally see that extra cash tomorrow... even if inflation has already eaten it up before it lands.
Frequently Asked Questions
What is the role of central banks in the economy?
Central banks manage a nation's currency, money supply, and interest rates. They implement monetary policy to control inflation, stabilize the currency, and foster economic growth. They also serve as lenders of last resort to the banking system during financial crises.
How does inflation affect the value of money?
Inflation refers to the general rise in prices over time, which erodes the purchasing power of money. As inflation increases, each unit of currency buys fewer goods and services, meaning that the value of money decreases in terms of what it can purchase.
What are the different types of money?
The main types of money include commodity money, which is based on physical goods like gold or silver; fiat money, which is government-issued currency not backed by a physical commodity; and digital currency, which exists electronically and is often decentralized, such as cryptocurrencies.
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Money is a medium of exchange that facilitates transactions for goods and services. It serves as a unit of account, a store of value, and a standard of deferred payment, allowing individuals to compare the value of diverse products and services.
What are the main functions of money?
The primary functions of money are as a medium of exchange, facilitating trade; a unit of account, which provides a standard measure of value; a store of value, allowing individuals to save and transfer purchasing power over time; and a standard of deferred payment, enabling credit transactions.
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Credit scores are numerical representations of an individual's creditworthiness, calculated based on credit history, payment behavior, and debt levels. They are important because they impact the ability to obtain loans, credit cards, and favorable interest rates, affecting overall financial health.
What is the importance of financial literacy?
Financial literacy is essential for making informed decisions about budgeting, saving, investing, and managing debt. It empowers individuals to understand financial concepts, evaluate risks, and navigate complex financial products, leading to better financial stability and long-term wealth building.
Statistics
- According to the Federal Reserve, approximately 39% of Americans do not have enough savings to cover a $400 emergency expense.
- The average cost of raising a child in the U.S. is estimated to be around $233,610, according to the U.S. Department of Agriculture.
- In 2020, the average retirement savings for Americans aged 60 to 69 was approximately $195,000, according to Fidelity.
- A study by the National Endowment for Financial Education found that 60% of Americans do not have a budget.
- As of 2021, the average student loan debt for recent graduates was approximately $30,000, according to the Federal Reserve.
- The average return on investment for the S&P 500 over the past 90 years is about 10% per annum.
- As of 2021, the median household income in the U.S. was approximately $67,521, according to the U.S. Census Bureau.
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Did you miss our previous article...
https://hellofaread.com/money/neck-fan-frenzy-home-bargains-5-cooling-gadget-has-shoppers-losing-their-minds-and-saving-on-bills
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