HOUSEHOLDS on Universal Credit will want to make a note of these key dates in July and August.
During these two months, some big money changes will be taking place including the first instalment of the cost of living payments.
These changes will include Universal Credit, National Insurance and benefits.
Trending In The News has condensed the changes down for you so you can easily keep track of key dates.
First £650 cost of living payment
Eight million households in the UK will receive their first £650 cost of living payment.
You’ll receive £326 between 14 July and the end of the month.
In order to claim the benefit you must receive Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), income support and pension credit.
You must also have a successful claim or receive them by 25 May 2022 to receive the £326.
Don’t worry about filling out an application form because this payment is automatic.
However, if you’re claiming tax credits you’ll have to wait longer to receive your first payment.
National Insurance
On 6 July, there will be a new change to National Insurance.
The threshold will rise meaning you have to earn £12,570 rather than £9,000 before you start paying National Insurance Contributions (NICs).
You can find out exactly how much less NICs you’ll pay by using the Government’s calculator.
This could mean you’ll be paying less and have more money to spend in your pocket.
For example, someone who earns £20,000 a year will pay around £291 less a year – and this could have an effect on your Universal Credit payments.
Switch from benefits
If you claim legacy benefits then you could move to Universal Credit as the Government has resumed its plan to switch people over to the new-style benefit. This is known as “managed migration”.
This programme was paused during the Covid-19 pandemic but has resumed again as of May this year.
Households who still claim benefits that are being “phased out” will be transferred to Universal Credit.
The Government aims for this to be complete by the end of 2024. The programme started with 500 people.
If you have a change of circumstances like moving house or giving birth, you may have already been moved to Universal Credit.
You can also elect to move over – but be warned you may not be better off.
If not, you’ll be invited over to switch to Universal Credit and you’ll later receive a letter from the Department of Work and Pensions (DWP).
You then have to apply to Universal Credit by a deadline, which is usually within three months. Be warned if you miss the deadline, your benefits could be delayed or stopped altogether.
Bank holiday changes in August
During the August bank holiday, your Universal Credit payment could be affected as it may be paid early.
Other benefits including state pension and child benefit could also be affected.
Universal Credit is paid once a month directly to your bank, building society or credit union account.
However, if that pay date falls on a bank holiday, it’s usually paid the working day before.
There’s nothing you can do about the change as the payment is automatic.
There may be other ways to save this year. There’s a major rule change that will slash the price of kids uniform this year.
Millions on Universal Credit could be missing out on free cash – find out if you are here.
You could a grant of £200 to help with your food bills. Find out more here.
