A HUGE shake-up to the benefits system is taking place this year and some changes will affect hundreds of thousands of households.
It’s vital to take note of how new rules could soon affect your payments or benefit eligibility so that you don’t fall short.
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Hundreds of thousands of parents on Universal Credit will see a major boost to the childcare element from June 28.
While thousands more could see their payment dates change later this year.
More cost of living payments are on the way for millions of hard-up households.
But the government is also making a big change to Universal Credit work rules and sanctions in the Autumn.
Below we round up how benefits are changing in 2023.
1. Changes to the childcare element of Universal Credit – June 28
The Chancellor’s “back to work” Budget was used to encourage more than 700,000 parents on Universal Credit to get a job or raise their hours with new measures.
Currently, parents on Universal Credit can claim back 85% of their childcare costs – but they have to pay upfront first.
It means parents may have to find more than £1,000 for a month’s nursery care in advance before getting any support.
But childcare payments will begin to be paid upfront rather than in arrears for those who start work or significantly increase their hours in a big win for the Sun’s Make Universal Credit Work campaign.
Parents who are already working and claiming childcare costs won’t get their payments upfront unless they change jobs or there is a “significant change” to their hours.
The childcare allowance for claimants will also be hiked from £646 a month for a single child to £950, and from £1,108 for two children to £1,630 from June 28.
But families won’t see their childcare payments increase right away because of the way these are calculated over different “assessment periods”, depending on when they first claimed UC.
For some, the increase won’t come until August.
2. Changes to payment dates – August and December
Thousands of people claiming Universal Credit could see a change to their payments within the coming months.
Bank holidays over August and Christmas may mean that you might see cash hit your bank account before your usual payment date.
Here’s when the DWP will make your payments around the remaining public holidays this year:
- Summer bank holiday – payments will be made on August 25, not August 28
- Festive period – payments due on December 25, 26 and 27 this year, will instead be paid on December 22
If your payment falls outside of these dates, you shouldn’t expect any changes at all.
But if you are affected and don’t receive your benefit payment one working day before the bank holiday, you should contact DWP directly.
You can also submit a complaint to them to get a problem sorted if your payment is wrong.
3. Changes to work rules and sanctions – Autumn
Over 100,000 Universal Credit claimants will have to step up their search for work or face having their benefits cut.
Plans to raise the minimum amount of hours that claimants must work before they have to engage with government jobs coaches will come into force in Autumn 2023.
The Administrative Earnings Threshold will rise from 15 to 18 hours per week.
It means anyone currently working fewer than 18 hours will have fresh requirements to meet with DWP officials to find more work.
And if they do not they risk having their benefits cut.
The government has also confirmed that it is strengthening the application of the Universal Credit sanctions regime.
This includes additional training for Jobcentre work coaches to ensure they are applying sanctions effectively, including for claimants who do not look for or take up employment.
It also includes automating administrative elements of the sanctions process, including sending automated messages to claimants who fail to meet their work coach and take active steps to move into work or increase their earnings.
The exact date on which the new rules will come into force hasn’t been confirmed but is expected to happen in the 2023/24 financial year.
4. Cost of living payments – Autumn
A range of cost-of-living support is available right. People can visit the helpforhouseholds.campaign.gov.uk for more information.
Millions are also in line to receive cost of living payments worth up to £1,350 in total.
The first instalment of the £900 payment has already been paid to millions on certain benefits, including Universal Credit and Pension Credit.
As part of the £900, a second payment worth £300 will be made in the Autumn and a third payment worth £299 will be made in Spring 2024.
Meanwhile, a £150 payment started to be paid to millions with disabilities on June 20.
The tax-free cash will continue to be paid to all of those eligible until July 4.
Pensioners that are entitled to a Winter Fuel Payment later this year will get £300 payment boost in the final quarter of 2023.
5. More people to move to Universal Credit – 2023/24
The Department for Work and Pensions (DWP) has begun moving people on old-style benefits onto Universal Credit.
The move is called “managed migration” and involves households on “legacy benefits” such as Income Support being shifted across.
The Department of Work and Pensions announced in May that it will start moving those on tax credits to Universal Credit across the whole of the UK from September.
It comes after managed migration notices were sent out to over 500,000 claimants currently in receipt of tax credits in Avon, Somerset and Gloucester.
The process began in April this year following a successful pilot in Harrogate, Yorkshire, in July 2019.
By September, it expects to have made contact will all households on tax credits in all regions of Great Britain.
Over two million people are still on old-style legacy benefits, but the government plans to move the majority of them onto Universal Credit by the end of 2024.
However, those claiming employment and support allowance (ESA) that do not also get tax credits won’t be moved over until 2028.
A benefits expert has shared four things you need to know if you’re being moved onto Universal Credit.
What other changes are planned?
The Scottish Government has plans to scrap and replace carer’s allowance with a new benefit dubbed Scottish carer’s assistance.
But for now, it remains unclear as to how much the new benefit will be worth.
The devolved administration has plans to roll out the new benefit nationally in Spring 2024.
It is expected that in 2026, disabled Brits will be lured back into work with a plan that will promise they will not lose their benefits.
The plan which is under consultation will the burdensome work capability assessment will be scrapped so they do not have to jump through hoops to get health benefits.
Currently, people must complete a work capability assessment if they bail out of the job, which can take weeks.
It’s used to decide whether or not you are fit for work if you launch a claim or are already claiming employment and support allowance (ESA) and Universal Credit with a disability allowance.
Customers have to fill in a questionnaire and attend a medical assessment before a decision is made.
Scrapping the assessment will mean that disabled people can try to work without fear of losing their benefits, and it will reduce the number of assessments needed to qualify for health-related benefits.
