Universal Credit: Why your first payment amount could be less than your estimated payment

As the UK lockdown continues in an effort to slow the spread of coronavirus (COVID-19), many will be affected financially by the crisis. Already, claims for Universal Credit had soared – with the Department for Work and Pensions (DWP) confirming that since March 16, more than a million new claims for Universal Credit have been processed.

With the benefits system, which is replacing six legacy benefits, facing such high demand, the DWP this week announced a change to the process for new claimants.

As of earlier this week, people making new claims for the payment no longer need to call the Department as part of the process.

Rather, a frontline team will proactively call cliamants if they need to check any of the information which has been provided as part of the claim, in addition to messaging them on their online journal to confirm details.

The measure comes as a response to a “huge” volume of calls to Universal Credit phone lines.

Secretary of State for Work and Pensions Therese Coffey said: “We are doing whatever it takes to make claiming benefits as straightforward as possible during a time when we are receiving an unprecedented number of claims.

“That’s why no one making a new claim to Universal Credit needs to call us.

“Once you’ve completed your online application, you can rest assured we have received your claim and we will call you if we need to check any of the information you’ve given us.”

However, with so many new claimants, many may be left wondering how much they will get.

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Universal Credit is made up of a standard allowance, as well as any extra amounts which may apply to the claimant – such as if they have children, need help in paying their rent, or have a disability or health condition that prevents them from working.

It’s possible to use an independent benefits calculator in order to see how much a person can get.

The government website, Gov.uk, signposts three of these calculators – which are hosted by Turn2us, Policy in Practice, and entitledto.

A claimant’s circumstances are assessed every month, and any changes in circumstances can affect how much a person is paid for the whole assessment period – rather than just from the date that they are reported.

The payment itself is made once a month, and this is usually into the claimant’s bank, building society or credit union account.

However, it usually takes around five weeks to get the first payment – with this waiting time being made up of a one month assessment period and up to seven days for the payment to reach the account.

Amid the roll out, a measure to help people during this period of time has been brought in, and this is known as an advance.

“The most you can get as an advance is the amount of your first estimated payment,” the Gov.uk website states.

However, it is very important to be aware that the advance must be paid back, and this begins out of the first payment.

The claimant can choose how many months they pay the advance back over.

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