As the £20 per week cut to Universal Credit payments begins to have an impact on people’s lives, our Money Advice Officer explores possible ways to minimise the impact of this reduction.
Give your Universal Credit claim a once-over
Considering how complex Universal Credit can be, the DWP are still making lots of mistakes in claimants’ calculations. There are a few areas where things regularly go wrong, for example:
- Taking Carer’s Allowance into account as income when it is not actually in payment
- Deducting Carer’s Allowance but not awarding a carer’s element
- Deducting amounts due to non-dependents in the household when the claimant or non-dependent are claiming Personal Independence Payment Daily Living Component
- Not including a Limited Capability for Work & Work Related Activity element when it should be included
- Only paying for a portion of the rent if a joint tenant has moved out but is still named on the tenancy agreement
Spotting and correcting these errors could improve the situation, or even make you better off than before the £20 per week cut. You can use a benefits calculator such as Entitledto, Turn2Us or Policy in Practice, or ask a specialist such as Citizens Advice or, if you are a Warrington Housing Association resident, our Money Advice Officer.
Review your budget
Take a close look at your budget and see if there is any non-essential expenditure you can cut out. Can you do without that magazine? Can you get by with Freeview instead of using that video streaming service? You can use services such as the Government-backed Money Helper to put a budget together and the Demotivator to see the true cost of those little non-essential expenses over time.
Use less
Even in the cold and dark winter months, there are steps you can take to try and use less energy and water and reduce your bills. The Energy Saving Trust has put together some quick tips to reduce energy consumption, and United Utilities have lots of resources to help you save water. Also, make sure you get the Warm Home Discount and Winter Fuel Payment if you are entitled to them.
Sort out your payments
If you’re already juggling the bills, losing an extra £20 per week could make you drop the ball. You could check to see if there are any discounts or incentives for paying by direct debit, or move any existing direct debits to a more convenient day. If you’re paying back debts, you could look into ways of reducing the payments, for example by speaking to your creditors, considering a debt management plan or IVA, using the Breathing Space scheme or getting some professional advice on all your options.
These are just a few ideas and there are many more things you could do to try to improve the situation. It is better to take control and try to prevent falling behind. If you are a resident of Warrington Housing Association and want some more detailed advice about this issue, please contact our Money Advice Officer for a free telephone consultation.
