Published On: Wed, Jul 22nd, 2020

Universal Credit UK: Changes come into effect today – how run on payment works | Personal Finance | Finance


Thousands of benefit claimants who are moving onto Universal Credit are set to receive up to two weeks of extra money, as of today. The Department for Work and Pensions (DWP) the up to two-weeks run-on of legacy benefits this week, with the new rule coming into effect from today.

According to the DWP, over a million households will gain from the two-week run-on, and the average gain is £200.

It means that now, if someone’s existing claim of income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA) or Income Support ends due to them applying for Universal Credit, they will receive a payment worth up to two weeks of their legacy award.

This will be a one-time payment, and it is known as a run-on.

The money is intended to help people during their first assessment period, and will not need to be paid back.

READ MORE: The 10 changes you must report or face losing Universal Credit payments

Rather than needing to apply for it, it will be paid automatically to eligible people when they claim Universal Credit for the first time.

As such, they won’t need to contact the DWP in order to get it.

The DWP has confirmed that the payment will not affect the amount of Universal Credit that the claimant receives.

Minister for Welfare Delivery Will Quince said: “This one-off payment will provide additional support as claimants move from legacy benefits to Universal Credit.

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“It doesn’t have to be paid back and won’t affect their UC award, so is welcome extra cash in pockets.”

Responding to the news, Dame Gillian Guy, Chief Executive of Citizens Advice, said: “Run-on payments are a welcome step that will lighten the burden for many legacy benefits claimants moving to Universal Credit.

“But millions of people who have lost their jobs as result of this crisis remain subject to the five-week wait.

“While advances are available, they have to be repaid, which can leave people with a choice of struggling now or struggling later.

Anyone who currently gets these benefits is told they don’t need to do anything unless:

They have a change of circumstances which they need to report

The DWP contacts them about moving to Universal Credit.

A pilot scheme for the movement of legacy benefits claimants who have not had a change in circumstances onto Universal Credit is taking place in Harrogate, North Yorkshire.



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