Published On: Fri, Sep 13th, 2019

Universal Credit changes: When will you get paid? New system comes in to force on this day | Personal Finance | Finance

Universal Credit changes are being implemented by the Department for Work & Pensions in October. Claimants will see a change in the amount they are paid from October 2. The changes will affect those who are repaying arrears or sanctions. When will claimants receive their money, and will the changes affect the payment date?

Universal Credit is paid monthly, and in order to receive the payment, the applicant must register online and then make a claim.

After submitting the claim, they may be able to apply for an advance – a loan which must be paid back from the first payment.

The claimant will also need to attend an interview during an assessment period – which will last around one month.

According to, it usually takes around five weeks for a claimant to get their first payment.

In addition to the one-month assessment period, this includes up to seven days for the payment to reach the account.

The changes to Universal Credit which roll out in October will not affect the date at which claimants receive money – only the amount they get, depending on their individual circumstances.

What is changing under the new regulation?

Those affected by a combination of repayments – rent arrears and/or sanctions alongside advanced payments – will see the amount they receive change.

Currently, the DWP an take deductions of up to 40 percent of the monthly standard allowance of Universal Credit.

From October 2, the “repayment cap” will be reduced to 30 percent. This means those paying the maximum should receive more money each month from October 2.

The DWP have confirmed the change will affect both existing and new claimants of Universal Credit.

However, those who only repay their advance payment will not see the amount the receive change, as the repayment threshold will remain at around 15 percent in these cases.

In all cases, charges and repayments must be paid within a 12 month period, but the DWP has previously said this would be extended to 16 months – but not until October 2021.

Who is eligible for Universal Credit?

Universal Credit is a payment which may be made in order to help with living costs.

It replaces six types of benefits, known as legacy benefits. These are Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), and Working Tax Credit.

Those who get the severe disability premium, or are entitled to it, or got or were entitled to it in the last month and is still eligible for it, cannot claim Universal Credit.

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