Universal Credit changes in April 2020 provided a year-long £1,000 boost to people using the benefit. Chancellor Rishi Sunak has allegedly toyed with scrapping the additional money in favour of a one-off payment. Those reliant on the money will get additional income with a concurrent rise, but not quite enough to match support created last year.
Will the Universal Credit boost cover the Covid grant?
Universal increases of £84 per month since last year worked out to an annual boost of £1,000.
Claimants could make use of the means-tested benefit to replace or support their income.
As such, it is a vital tool for those out of work during the pandemic.
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But recent rumours suggest the Chancellor is planning to axe the increase as other supports near expiry.
Downing Street has not denied it will do so since speculation began.
In late January, the Government’s spokesman said ministers have made “no decisions” relating to the benefit.
They said: “Throughout this crisis, we have made sure we have looked after those who are most vulnerable and we will continue to assess the economic and health context to decide how best to continue to support people who need our help.”
Extra amounts for children will also rise, from £281.25 to £282.50 for those with a first child born before April 6, 2017.
Parents with children born on or after this date will receive £237.08, an increase from £235.83, and those with a disabled child can count on a lower rate of £128.89 and a higher rate of £402.12.
Those with limited capability to work will be able to claim £128.89, a rise of 64p, and those with limitations for work-related activity can claim £343.63.
The higher work allowance will also increase from £512 to £515, while the lower amount has a slight increase of £1 from £292 to £293.