logo
Three Universal Credit and benefit changes coming next month – are your payments affected?

Three Universal Credit and benefit changes coming next month – are your payments affected?

The Sun2 days ago
THREE major changes to Universal Credit and benefits are coming next month.
It's crucial to understand how they might impact you and your household.
1
Hundreds of thousands of households on benefits will need to take action and switch to Universal Credit.
Meanwhile, benefit claimants can expect early payments next month due to the August bank holiday.
Plus, parents will need to make a note of a key child benefit deadline.
Here are all the big benefit changes coming in August.
Move to Universal Credit
Hundreds of thousands of households currently receiving a benefit, which is soon to be axed, are being urged to keep an eye out for important letters.
The managed migration process officially began back in July 2022 after a successful pilot in July 2019.
Since then, households receiving one of five legacy benefits, have been receiving postal notifications outlining the steps required to transition to Universal Credit.
Upon receiving a migration letter, claimants are given up to three months to make the switch.
Failure to act within this timeframe could result in the loss of existing benefits.
The Department for Work and Pensions (DWP) has already closed new claims for four legacy benefits - tax credits, income support, income-based jobseeker's allowance, and housing benefit.
Households still receiving income-related employment and support allowance (ESA) are now being urged to make the move to Universal Credit.
ESA provides financial support for those unable to work due to illness or disability.
Initially, the government planned to transfer all ESA claimants to Universal Credit by the end of 2028.
However, this deadline has since been brought forward to March 2026.
Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence
Benefits paid early
Thousands can expect to see their benefit payments land earlier than usual next month.
This is because when the day payments are due falls on a bank holiday or the weekend, payments are made on the first working day before.
It means those expecting benefit payments on the August bank holiday, August 25, will actually see payments land in their accounts on August 22.
Anyone expecting them on August 23 or 24 will also receive their money on August 22.
The Department for Work and Pensions (DWP) and HMRC have confirmed the following benefits will be made early in August:
Attendance allowance
Carer's allowance
Disability living allowance
Income support
Jobseeker's allowance
Pension credit
Personal independence payment (PIP)
State pension
Universal Credit
Child benefit (paid by HMRC)
If you are expecting your benefit payment on August 22 and don't receive it, contact DWP.
You can also submit a complaint to the government department to get a problem sorted if your payment is wrong.
Child benefit deadline
Parents have just weeks to take action or they could risk losing their child benefit payments.
The taxman is posting thousands of letters to parents of teenagers asking them to give an update about their future education plans.
Child benefit is currently worth £26.05 a week for the eldest child or only child.
For each subsequent child, parents get £17.25 a week.
However, payments automatically stop on August 31 on or after the child has turned 16 unless parents renew their claim when their child is continuing in education.
The parents of children who are furthering their education have until August 31 to tell HMRC or their payments will automatically stop.
Parents can continue to receive the cash boost up until their child is 19, and enrolled in an apprenticeship program or the following education schemes:
A levels or Scottish Highers
International Baccalaureate
home education - if it started before their child turned 16, or after 16 if they have a statement of special educational needs and it was assessed by the local authority
T levels
NVQs, up to level 3.
Child benefit will also continue for children studying on one of these unpaid approved training courses:
In Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme
In Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work
In Scotland: Employability Fund programme and No One Left Behind
How to claim Child Benefit
CHILD benefit is worth up to £1,358.32 a year for your first or only child and up to £899.47 a year for additional children.
This works out at £104.20 every four weeks or £26.05 a week for your first child and £69 every 4 weeks or £17.25 a week for their siblings.
There is no limit on the number of children that can be claimed for.
Applying is straightforward and can be done in minutes via gov.uk or through the HMRC app.
Parents with a newborn baby should make a claim online as soon as possible and could then receive their first payment in as little as three days.
You can also backdate claims for up to three months.
Parents can also make a claim and then choose to opt out of receiving child benefit payments can still receive National Insurance credits if one parent is not working.
National Insurance credits build up your entitlement to the state pension.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Woody Johnson completes purchase of Crystal Palace shares
Woody Johnson completes purchase of Crystal Palace shares

The Independent

time2 hours ago

  • The Independent

Woody Johnson completes purchase of Crystal Palace shares

Crystal Palace have confirmed that Woody Johnson's purchase of Eagle Football's shareholding in the club has been completed. American businessman Johnson – who is co-owner of the New York Jets – joins chairman Steve Parish, Josh Harris and David Blitzer as a partner and director of the Eagles, and has also signed the Premier League's Owners' Charter. 'I am honoured and privileged to be joining the ownership group of Crystal Palace Football Club,' Johnson told the Eagles website. 'It is an organisation with a proud history, tradition, and deep roots in English football in South London, which I came to admire during my time as US Ambassador to the United Kingdom. 'Eagles fans have demonstrated extraordinary loyalty, passion, and unwavering dedication and I am excited to meet and get to know them. 'I have great respect for Steve Parish and the leadership he has provided over the years. 'I look forward to working with him and the entire ownership group to build on the club's recent successes and help shape an exciting future for Crystal Palace. 'This is more than an investment – it's a commitment to realising the vision for the club, the community, and the culture around Selhurst Park.' Johnson's arrival at Palace comes with the club in dispute with UEFA over which European competition they will play in next season after winning the FA Cup in May. The Eagles were demoted from the Europa League to the Conference League after falling foul of UEFA's rules governing multi-club ownership, but have submitted an appeal to the Court of Arbitration for Sport. UEFA determined that as of March 1, American businessman John Textor had control or influence in Palace and French club Lyon. Textor said he had agreed to sell his stake in Palace to Johnson, but the move came too late to satisfy UEFA. Parish said: 'At this exciting time for Crystal Palace, we are delighted to be welcoming Woody to the ownership of the football club, and we very much look forward to working alongside him to build on our historic recent success moving forwards.'

FA issue England manager warning ahead of Euros final
FA issue England manager warning ahead of Euros final

The Independent

time2 hours ago

  • The Independent

FA issue England manager warning ahead of Euros final

The Football Association (FA) is determined to retain Sarina Wiegman as England manager, with chief executive Mark Bullingham stating she is "not for sale" at any price. Wiegman has reached five consecutive major tournament finals, including the last three with the Lionesses, and will lead them in the Euro 2025 final against world champions Spain. Her current contract with the FA extends until the end of the 2027 Women's World Cup, and Bullingham expressed confidence in keeping her in charge. Bullingham praised Wiegman as a "special coach" for her exceptional tournament record, work with players, and ability to maintain a cool head in critical moments. He dismissed suggestions that Wiegman should be considered for the England men's job, asserting it is disrespectful to view the men's role as more senior.

Iconic fashion chain plans UK high street RETURN after going bust and shutting 46 stores
Iconic fashion chain plans UK high street RETURN after going bust and shutting 46 stores

The Sun

time2 hours ago

  • The Sun

Iconic fashion chain plans UK high street RETURN after going bust and shutting 46 stores

AN iconic fashion chain is planning to make a triumphant return to the high street next year, The Sun can exclusively reveal. Ted Baker is set to make a comeback to the British high street in early 2026, sources close to the matter have said. It is understood the brand is planning to return to London, with more details to be confirmed closer to the time. It's not clear yet how many shops there will be or whether there will be any outside the capital. The news comes more than a year after the much-loved brand dramatically collapsed and shuttered all its stores in August 2024. Founded in 1988, Ted Baker was well-known in the 90s for its clothes and accessories with bold and floral designs. A decade ago it was one of the strongest names in the retail sector with 550 shops and concessions around the world - but has recently ran into major difficulties. Shoppers were shocked when the fashion giant fell into administration in March last year. It brought back its website in November last year, stocking a range of menswear, womenswear and accessories. The website currently ships to the UK only but it says it will offer international shipping "very soon". The Sun has approached Ted Baker for comment. What happened to Ted Baker The company's troubles first began in 2019 after its founder Ray Kelvin quit his role following allegations of harassment. Fashion chain to shut all shops It then put out several profit warnings, which is when a company advises the stock market that profits will be lower than expected. In 2020, the retailer said it would axe 160 jobs. More bad news came in March 2024 it collapsed into administration, putting dozens of stores and hundreds of jobs at risk. By then the company had 86 stores across the UK and 975 employees. No Ordinary Designer Label (NODL), owned by Authentic Brands Group (ABG) and trading as Ted Baker, appointed Teneo as administrators. NODL blamed a deal going sour between its owners and a Dutch operating partner that had allegedly promised to inject cash into the business. By April, Ted Baker had announced it would close 15 stores with the loss of 120 jobs. The Sun exclusively revealed in July 2024 that the brand was at risk of disappearing from the high street forever within weeks. It was then announced that the last of Ted Baker's 31 stores would be closed for good in August. The brand launched huge clearance sales to get rid of its final stock, with at least one store advertising at least 70% off everything. Shoppers raced to clear the shelves of glamorous maxi dresses, winter coats and men's suits at bargain prices before the stores shut forever. Other iconic brands that have come back from collapse Ted Baker wouldn't be the first brand to make a dramatic comeback to the high street. Shirtmaker T.M. Lewin announced last month it would be opening more stores in London, Manchester and Edinburgh. The brand had fallen into administration and shut all of its 66 branches in 2020. Last year, fashion and homeware chain Cath Kidston made a surprise return by opening a store in Westfield White City, London. The retailer had crashed into administration and shut all of its stores in 2023. Wilko also made a high street comeback with stores in England, Scotland, Wales and Northern Ireland almost a year after it went into administration. Meanwhile fashion chain M&Co opened a new store in Scotland a little more than a year after it collapsed. What does going into administration mean? WHEN a company enters into administration, all control is passed to an appointed administrator. The administrator has to leverage the company's assets and business to repay creditors any outstanding debts. Once a company enters administration, a "moratorium" is put in place which means no legal action can be taken against it. Administrators write to your creditors and Companies House to say they've been appointed. They try to stop the company from being liquidated (closing down), and if it can't it pays as much of a company's debts from its remaining assets. The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward. This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting. A Notice of Intention is used to inform concerning parties that a company intends to enter administration. It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated. Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store