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Universal Credit

Universal Credit. Replaces all existing means tested benefits for working age claimants (Except Council Tax Benefit). Abolished. Income Support Income based Jobseekers Allowance Income related ESA Housing Benefit Council Tax Benefit Child Tax Credit Working Tax Credit Budgeting loans.

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Universal Credit

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  1. Universal Credit • Replaces all existing means tested benefits for working age claimants • (Except Council Tax Benefit)

  2. Abolished • Income Support • Income based Jobseekers Allowance • Income related ESA • Housing Benefit • Council Tax Benefit • Child Tax Credit • Working Tax Credit • Budgeting loans

  3. £113.90 Total Income £67.50 £99.85 £169.20 £94.25 £200.20 CP £31.00 SDP £55.30 EDP £14.05 WCA £32.35 £26.75 £67.50 £67.50 Single person aged 25+

  4. £144.50 Total Income £67.50 £94.25 Universal Credit – the sick note route WCA £77.00 £26.75 £67.50 £67.50 Single person aged 25+

  5. Carers • Single Carer aged 25+ £98.50 • Couple aged 25+ (Jobseeker and Carer)£136.95 • Couple aged 25+ (Carer and Carer)£167.95 • Couple aged 25+ (ESA wrag and Carer)£163.70 • Couple aged 25+ (ESA support and Carer)£169.30

  6. Children £62.33

  7. Housing costs • Housing Associations • LHA • Mortgage interest

  8. Moving into work 65% taper

  9. Moving into work – earnings disregards • lone parent: £5,000 plus £2,700 per household for a child; • disabled person: £7,000 per household if the recipient or either partner in a couple is disabled; • single person without children: no disregard • couple: £3,000 plus £2,700 per household for a child (regardless of the number of children);

  10. Moving into work The amount to be disregarded will be reduced depending on how much is included in universal credit for rent or mortgage interest support.It is proposed to reduce disregards by one-and-a-half times a claimant’s eligible rent or mortgage interest support.

  11. Moving into work – disregard floor The reduction for housing costs is limited so that people get a minimum disregard – called a ‘disregard floor’. couple: £520 per household plus £520 for the first child, £260 for each of the second and third children; lone parent: £1,560 per household plus £520 for the first child, £260 for each of the second and third children; disabled people: £2,080

  12. Moving into work - example A lone parent with three children has rent of £80 a week.   Assumed maximum disregard is £7,700 and the disregard floor is £2,600. Reducing the disregard by 1.5 times the help with housing costs (£6,240) would bring the disregard below the floor. So the disregard that applies is the floor of £2,600 = £50 a week.       As a result of the 65 per cent taper, she also keeps 35p for each £1 of net earnings over £50.

  13. Other issues • Children with disabilities • Help with childcare costs • Income from self employment

  14. Universal Credit – more information http://www.dwp.gov.uk/policy/welfare-reform/legislation-and-key-documents/welfare-reform-bill-2011/universal-credit-briefing/ http://www.cpag.org.uk/universalcredit/uc_factsheet.htm

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