Thousands of households across the UK could soon see their Universal Credit payments reduced by as much as £470 annually following new government adjustments to benefit calculations.
Why Are Payments Being Cut?
The Department for Work and Pensions (DWP) has revised the way it calculates benefit entitlements, leading to significant reductions for many claimants. The changes primarily affect those receiving housing support as part of their Universal Credit payments.
Who Will Be Impacted?
Experts warn that low-income families, single parents, and individuals in rented accommodation will bear the brunt of these cuts. The reduction stems from an updated assessment of Local Housing Allowance (LHA) rates, which determine how much support tenants receive for housing costs.
Key Changes:
- Average annual reduction of £470 per claimant
- Affects those renting privately
- Impacts households already struggling with rising living costs
Government Response
The DWP maintains that the adjustments ensure fairness in the welfare system, stating that the changes reflect current rental market conditions. However, charities argue that the cuts will push vulnerable families deeper into financial hardship.
Advice for Claimants: Those concerned about their payments should contact the DWP or seek guidance from local welfare rights organisations.
