Changes to the Department for Work and Pensions (DWP) system could see thousands of Universal Credit claimants receiving an extra £28 payment. The policy is already operational in certain areas, with the possibility of expansion across the entire United Kingdom.
Scottish Child Payment Expansion Proposed
Policy advocates recently addressed the Work and Pensions Committee regarding measures to tackle child poverty. One proposal put forward by representatives was to extend the Scottish Child Payment nationwide.
This payment amounts to £28.20 per week for each child under the age of 16, provided the claimant is on certain benefits. Payments are issued every four weeks, meaning a claimant would receive £112.80 per four-week period for each child. Only one person can claim the payment per child, and receiving it does not affect any other UK or Scottish Government benefits, nor those of any other household member.
Eligibility Criteria
People on Universal Credit and income-based Jobseeker's Allowance (JSA) can claim the extra payment. Additionally, single claimants on any of the following benefits may be eligible:
- Pension Credit
- Income Support
- Income-related Employment and Support Allowance (ESA)
If your partner is named on any of the above benefits while you are not, your partner can apply for the payment.
Impact on Child Poverty
Edward McPherson, senior consultant at policy consultancy WPI Economics, told the committee that the payment has been effective, as it has demonstrably reduced child poverty rates in Scotland. He suggested it could have a similarly positive impact if expanded across the UK, stating: "When you model an extension of that to the UK, it is very effective as well."
Recent Benefit Payment Increases
Benefit payments increased in April. The standard allowance for Universal Credit has risen to:
- Claimants single and under 25: £338.58
- Claimants single and 25 or over: £424.90
- Claimants living with a partner and both under 25: £528.34
- Claimants living with a partner and either 25 or over: £666.97
Additionally, claimants can receive £303.94 per month for each child living with them. This policy was recently changed; previously, support was restricted to the first two children, but now payments are available for every child in your care.
You may also wish to check eligibility for Child Benefit, which pays £27.05 per week for your eldest or only child and £17.90 per week for each additional child. Once either you or your partner individually earns more than £60,000, you must repay part of your claim. The repayment amount increases with income, and the full amount must be repaid once earnings reach £80,000.
