TO significant changes will soon affect low- and middle-income families in the United Kingdom, with temporary increase of 20 pounds to universal loan payments until October 6. The boost was originally introduced in response to the coronavirus pandemic, but it should now stop.
The Universal Loan is a new benefit that combines previous income support benefits, income-based job seekers benefit, employment and support benefits, housing benefit, child tax credit, and workers tax credit. The amount people receive will depend on their circumstances, but a £ 20 top-up has been ubiquitous to address coronavirus concerns.
Now, a year and a half after the start of the pandemic, the UK government will put an end to this growth on October 6.
When exactly does the increase in universal loan payments end?
The official end date for this £ 20 hike is October 6, but that won’t really be the end date for many people.
The exact date when the additional money will cease will depend on how you receive Universal Credit.
This means that some may have already stopped receiving it, while others may receive payment after October 6, but this will only be due to processing time.
What will happen when payments on universal loans are cut in October?
This cut is very worrying for some charities in the UK. For example, Citizens Advice estimates that a third of people using universal credit will end up in debt after the October 6 change, while the Health Foundation says the cut could lead to worse mental health and wellbeing in the UK.
“It can be a very tough winter,” he warned. Kwasi Quarteng, State Secretary for Business, Energy and Industry Strategy. “This is why, as Minister of Energy, I am very focused on helping people who are low on fuel. Universal credit is a problem for the chancellor and secretary for work and pensions. I talk to them a lot about this. “
In fact, the cut could cause problems for individuals and families who have come to rely on that extra £ 20 over the past year and a half. There are various other schemes that survivors can look into if they are still stranded, such as the Limited Emergency Relief Scheme, Discretionary Housing Benefit Schemes, and the Special Need Fund. But applying for this is a separate process.