In an automatic move that was previously halted by the Covid-19 pandemic, more than 2.6 million people who are on legacy benefits will be transferred to Universal Credit starting this week.
Martin Lewis has criticized the government for allowing millions of low-income households to be migrated to Universal Credit during a crisis of the cost of living.
Lewis has been a vocal critic of the Government regarding the rise in living costs. He stated that Universal Credit was already lower than inflation, and that families may see their earnings drop again.
“We have a situation where Universal Credit itself hasn’t been uprated by the current level of inflation because it was the older level of inflation when it was lower,”According to the expert in money,
“You’re [The government is] actually going to move people onto a new system where they can earn substantially less amid a cost of living crisis, we are again throwing some of the poor in society under the bus […] do the Government not understand the timing?”
This week, more than 2.6 million people who are on legacy benefits will be transferred to Universal Credit. The automatic transfer was halted by the Covid-19 pandemic.
The migration means people on legacy support, such as Jobseeker’s Allowance will be transferred across, with 500 people to receive letters this week – but for many, it could mean a dramatic cut in payments.
Over 20 charities have called on the UK Government not to allow migration while families struggle with rising inflation.
Dr. Therese Coffey, Work and Pensions Secretary, has been contacted by groups to warn him that plans to transfer legacy benefits claimants to the new system are in jeopardy. “too dangerous to continue”.
They believe that more than 700,000.000 people living with mental illness, learning disabilities, and dementia could lose their incomes, and that benefits could be stopped. “devastating and life-threatening”.
Ms. Coffey claimed that she is in compliance with the House of Commons’ April 25th written statement. “absolutely committed to making this a responsible and safe transition”.
According to the Government, this could lead to a worsening of living standards for 900,000.
Here’s a guide on how to determine if Universal Credit will be a better option for you.
Legacy benefits may include the following: “run on”You can help to bridge the gap between migration and settlement for up to two weeks.
This includes Housing Benefit and Income Support as well as income-related Employment and support allowances and income-based jobseeker’s allowances.
Find out what benefits the switchover will bring.
A spokesperson for the UK Government stated: “Over five million people are already supported by Universal Credit.
“It is a dynamic system which adjusts as people’s earnings change, is more generous overall than the old benefits, and simplifies our safety net for those who cannot work.
“Roughly 1.4 million people on legacy benefits would be better off on Universal Credit, with top up payments available for eligible claimants whose Universal Credit entitlement is less.”
Martin advised anyone with a low income to verify if they are eligible for a 50% savings boost last month.
MSE founder John McLean gave advice to people on how to save money during a crisis. “unbeatable”And that “many who are eligible rave about it”.
The Help to Save scheme pays a 50% bonus up to a maximum of £1,200 over four years.
Savers can invest up to £50 per month with bonuses paid after two years and four years.
The bonus paid is based on the highest balance in your account during the two previous years (whenever that is – it doesn’t have to be the end balance), with a maximum bonus of £600 each time.
The bonus for year three and four is paid if your highest balance in these years exceeds the highest balance of the previous two.
In order to qualify you must be a UK resident and either be on Universal Credit with an employment income of £658.64 in the last monthly assessment period or be entitled to working tax credit and receive working or child tax credit.
You don’t need to save every month. Withdrawals can be made at any time.