The Salary Calculator

Changes to Universal Credit and how to access alternative financial assistance

by Madaline Dunn

As part of the government’s Covid-19 support plan, back in 2020, it introduced a £20 boost to those receiving Universal Credit. However, this financial intervention was only temporary and officially ended on 6 October 2021, despite a considerable amount of backlash from across the board.

Of course, the announcement of the scheme’s end is not good news for many, and it’s understandable to be concerned about how this will affect you and your family financially. After all, the cut means that around six million unemployed and low-paid workers will face a £1,040 cut to their yearly incomes.

Speaking about what the cuts will mean for many families, Morgan Wild, Head of Policy at Citizens Advice, said: “More than half a million people have come to Citizens Advice for support with Universal Credit since the pandemic. We know the extra £20 a week has often meant the difference between empty cupboards and food on the table.”

That said, there are a number of different forms of alternative financial assistance that can help support you in this difficult and turbulent time.

At The Salary Calculator, we’ll guide you through some of the different types of financial assistance available, including:

• Help with essential costs
• A reduction in council tax
• Assistance with paying rent
• Free prescriptions
• How to check what financial aid you’re eligible for

Essential costs

If you and your family are finding it hard to keep up with the cost of essentials, whether that’s food or clothes, you can reach out to your local council and ask if you’re eligible for a hardship fund. To find out what your local council is and reach out for more information, head over here.

Equally, for those struggling to pay for food costs, you can try food bank vouchers. To access these vouchers, you can ask an organisation that’s supporting you, whether that’s a charity, school or Citizen’s advice, for a referral.

If you have children who are attending school and you receive governmental financial support, they might be eligible for free school meals.

Those who receive the following are eligible:

• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Support under Part VI of the Immigration and Asylum Act 1999
• The guaranteed element of Pension Credit
• Child Tax Credit (provided you’re not also entitled to Working Tax Credit and have an annual gross income of no more than £16,190)
• Working Tax Credit run-on
• Universal Credit

For more information, visit the government website.

Reducing council tax

If you’re finding it hard to make ends meet following the Universal Credit cut, you can apply to have your council tax bill reduced. In some cases, applicants can get their bill reduced by 100%, but this will be determined by a number of different factors, including where you live, your circumstances and income and whether you have other adults or children living with you.

Help with paying rent

Rent is getting more and more expensive all the time, and with the added financial strain caused by the Universal Credit cut, it can be really difficult to find enough money to pay for life’s expenses. To help with this, you can apply for a Discretionary Housing Payment (DHP) through your local council.

To be eligible for this, you must already claim housing benefit or the housing element of Universal Credit.

Prescriptions

Little costs add up, and prescriptions for medication can sometimes end up costing you a bomb. Luckily, if you are a receiver of any of the following, you may be entitled to free prescriptions:

• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Pension Credit Guarantee Credit
• Universal Credit

If you’re not too sure whether you’re eligible, you can double-check with the NHS’s eligibility checker.

How to check what you’re entitled to

It’s not always clear what financial assistance you are entitled to, but a great way to keep up-to-date and ensure that you don’t miss out is to carry out a benefit check. You can do this by using an online benefits calculator or by reaching out to your local Citizen’s Advice Office.

Tags: coronavirus, Financial assistance, unemployment, Universal credit