21 August 2023 , 12:43
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The Department for Work and Pensions (DWP) is rolling out a Universal Credit update next month that will affect millions of claimants.
The DWP is introducing a new automated "Conversational Platform" in late September for people who are calling about a new or existing benefit claim. Claimants will speak to a virtual agent who will be able to answer simple questions, instead of being asked to press the keypad for specific menu choices.
People calling up for support with their Universal Credit claim will be asked why they are calling, then the virtual agent will use speech recognition to determine what help they need. The virtual agent will be able to answer simple questions. But callers who need further help will be redirected to a real DWP agent.
The caller will also be redirected to an advisor if they ask to speak to a person, or indicate they are vulnerable. Around 5.9 million people currently claim Universal Credit in the UK and will be impacted by this change.
There isn’t a flat rate you can claim through Universal Credit - instead, it depends on your living situation, if you work or have savings, as well as other factors. Your claim is first made up of a "standard allowance" which is based on your age and if you’re claiming as a single person, or in a couple. The standard allowance is:
8 money changes coming in February including Universal Credit and passport fees
Single under 25: £292.11 per month
Single 25 or over: £368.74 per month
Joint claimants both under 25: £458.51 per month
Joint claimants, one or both 25 or over: £578.82 per month
You may get additional payments on top of this, for example, if you look after a child or you're unable to work due to health issues. Any additional amounts you may be entitled to are then applied to give your total figure before any deductions are then made.
Deductions are made based on your earnings, if you have savings, and other measures - for example, if you owe the Department for Work and Pensions (DWP) money. If you work, there is a taper rate which reduces your maximum Universal Credit payment as your earnings increase.
The taper rate is 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn. But some people get a "work allowance" which is a set amount you can earn before your Universal Credit is reduced.
If you get a work allowance then your Universal Credit will be reduced by 55p for every £1 you earn above your work allowance. The benefit cap, which limits the amount of benefits you can claim, can also affect your Universal Credit entitlement.