Many people on Universal Credit may have their payments cut next month – Are you a victim of this?
UNIVERSAL CREDIT claimants have been notified that their payments may be reduced next month due to a government rule change.
Universal Credit payments provide assistance to millions of people who are low-income, unable to work, or do not have a job. For many people, the monthly payment might be a lifeline, allowing them to meet unexpected expenses. Many self-employed workers, on the other hand, should be informed that their payments may be reduced beginning next month.
Because the government is reintroducing a rule known as the Minimum Income Floor, which was briefly suspended owing to the pandemic, this is the case.
If a person is self-employed and earns a modest wage, their Universal Credit payment may be calculated based on a larger wage than they actually have.
The Department for Work and Pensions (DWP) expects someone to earn a certain amount each month under its Minimum Income Floor guideline.
It’s usually based on the National Minimum Wage multiplied by the amount of hours an employee is scheduled to work.
Of course, this will be determined by the DWP’s assessment of an individual’s unique circumstances.
As a result of COVID-19, this rule was repealed, as the epidemic affected millions of individuals.
Anyone who was self-employed, on Universal Credit, and earning less than the minimum wage might effectively obtain a benefit boost.
The interim suspension of the Minimum Income Floor, on the other hand, is coming to an end.
This is part of the government’s larger goal to gradually reduce COVID-19 assistance measures as people regain their footing.
Furlough support from the government was reduced to 70% yesterday as part of plans to phase down the program in July.
The fifth self-employment SEISS grant is expected to arrive soon, but it is the government’s final source of formal support for the self-employed.
In addition, the £20 per week cut to Universal Credit that began in September is set to end soon.
The Minimum Income Floor restrictions will reappear on July 31, 2021, and may have an impact on the amount a person receives.
According to the organization Turn2Us, the average reduction in a worker’s benefit payments could amount to £3,200 per year.
Previously, the government took measures to keep the Minimum Income Floor suspended as part of the “Brinkwire Summary News.”