Here are the changes that will come into effect in 2022.
It’s a new year, and that usually means changes to the way benefits are paid. There are some changes to Universal Credit coming to the UK, and we’ll go through them in this tutorial.
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Changes to the Universal Credit taper rate in 2022
An adjustment to the Universal Credit adjustment rate has been introduced just before the new year.
The adjustment rate restricts the amount that Universal Credit recipients can keep, with employees losing 63p for every £1 earned above the work allowance. However, this rate has now fallen to 55p, resulting in a difference of 7p for Universal Credit recipients.
Changes to the work allowance under Universal Credit 2022
There is a working allowance with Universal Credit. This is the maximum amount of money you can earn before the taper comes into effect.
For 2022, the monthly working allowance has increased by £42 from £515 to £557. This equates to an additional saving of £504 over the year.
Changes to the £20 increase in Universal Credit in 2022
Claimants received an extra £20 in Universal Credit payments in 2021, following a temporary increase implemented to help deal with the coronavirus outbreak and its consequences.
However, as this scheme ended in October, claimants will not be entitled to additional funds in 2022.
Calculator for Universal Credit in 2022
The government has created a Universal Credit calculator to help people work out whether or not they are entitled to payments and how much they can claim. You can find out more about it on the UK Government website and then start claiming.
Universal Credit is available to more people than most people realise, as it is a benefit that can be claimed even if you are in employment.