Employed claimants will see their Universal Credit payments reduce by 63p for every £1 earned.
However, there are work allowances in place which allow claimants to earn a certain amount before their Universal Credit is impacted.
The work allowance will apply to claimants if they or their partner are either:
Responsible for a child or young person
Living with a disability or health condition that affects their ability to work
Universal Credit can be impacted by housing costs (Image: GETTY)
The work allowance itself can come in two forms which are based on whether a claimant is getting help with housing costs.
| UPDATED: 08:12, Fri, Feb 19, 2021
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Universal Credit payments are tailored to an individual claimant s circumstances, with additional amounts provided for certain elements such as childcare. If a claimant still requires additional support after their monthly payment, certain perks could be received such as a reduction on council tax bills.
UNIVERSAL Credit claimants can receive additional support for certain lifestyle costs, such as energy, water and internet bills. On top of this, claimants may also be able to get help with various legal costs.
In a report released by the Women and Equalities Committee on February 9, it was detailed that while these increases have been broadly welcomed, they raised concerns about the overall generosity of the welfare system.
The Committee argued the pandemic exacerbated perceived weakness in the Universal Credit system, with an example being the requirement for a five-week wait for initial payments, single household payment problems and joint household assessments and incentives.
When an initial claim for Universal Credit is put through, some claimants may have to wait at least five weeks before receiving their first payment and the Committee warned: We heard that the five-week wait can cause particular difficulties for women in abusive relationships, especially during the pandemic, as other opportunities for support have been restricted.