YOUNG single parents on Universal Credit are missing out on up to £100 a year because of their age, warns a think tank.
A report by the Resolution Foundation has found that single parents under the age of 25 are twice as likely to lose out when moving over from the old benefit system.
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Payments for single parents aged 18 to 24 are typically reduced by £15.20 a week on the new welfare system.
The Foundation’s report, published today with the Health Foundation, found that two in three young single parents saw a drop in income after being switched onto the new system, compared to 32 per cent who saw their payments go up.
This differs from the impact the switch has on older single parents, where a smaller 56 percent saw their income fall while a larger 41 per cent saw theirs increase.
Under Universal Credit, single people aged between 18 to 24 are awarded up to £251.77 a month as a standard allowance compared to £317.82 for those aged over 25 regardless or whether or not they have children.
This is the same amount as the old benefit system, but single parents aged 18 to 24 would be entitled to claim the same rate set for those 25 and older if they had a child under the age of five.
This means that younger parents are missing out on the extra cash when they’re rolled onto Universal Credit.
The Sun wants to Make Universal Credit Work
UNIVERSAL Credit replaces six benefits with a single monthly payment.
One million people are already receiving it and by the time the system is fully rolled out in 2023, nearly 7 million will be on it.
But there are big problems with the flagship new system – it takes 5 weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.
And while working families can claim back up to 85 per cent of their childcare costs, they must find the money to pay for childcare upfront – we’ve heard of families waiting up to 6 months for the money.
Working parents across the country told us they’ve been unable to take on more hours – or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.
It’s time to Make Universal Credit work. We want the government to:
- Get paid faster: The Government must slash the time Brits wait for their first Universal Credit payments from five to two weeks, helping stop 7 million from being pushed into debt.
- Keep more of what you earn: The work allowance should be increased and the taper rate should be slashed from from 63p to 50p, helping at least 4 million families.
- Don’t get punished for having a family: Parents should get the 85 per cent of the money they can claim for childcare upfront instead of being paid in arrears.
Together, these changes will help Make Universal Credit Work.
Join our Universal Credit Facebook group or email UniversalCredit@the-sun.co.uk to share your story.
On the legacy system, out-of-work single people in this age group also lost out due to their age when claiming jobseeker’s allowance and employment and support allowance.
Since 2012, under 35s have also been hit by lower rates of housing benefit.
But the situation is even worse under the new system and the report argues that these factors have all contributed to a “fraying social safety net for young adults”.
The charity is now urging the government to give single working parents the same higher basic allowance under Universal Credit regardless of their age.
Fahmida Rahman, from the Resolution Foundation, says that instead of addressing the issue that young people are worse off on benefits, Universal Credit has created a “young parent’s penalty”.
What to do if you have problems claiming Universal Credit
IF you’re experiencing trouble applying for your Universal Credit, or the payments just don’t cover costs, here are your options:
Apply for an advance – Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it’s a loan which means the repayments will be automatically deducted from your future Universal Credit pay out.
Alternative Payment Arrangements– If you’re falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you’re part of a couple.
Budgeting Advance – You may be able to get help from the government to help with emergency household costs of up to £348 if you’re single, £464 if you’re part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You’ll have to repay the advance through your regular Universal Credit payments. You’ll still have to repay the loan, even if you stop claiming for Universal Credit.
Cut your Council Tax – You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren’t enough to cover your rent.
Foodbanks – If you’re really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the Trussel Trust website.
She said: “This harsh treatment comes at a time when child poverty is already projected to rise.”
Jo Bibby, from the Health Foundation, added: “Benefits policy is a sector which isn’t often associated with health.
“However, the tremendous impact having a safety net to fall back on has on the futures of our young people should not be underestimated.”
Universal Credit is currently being rolled out to 10,000 Brits who are being automatically moved from the old system to Universal Credit.
Before, it was only applied to new claimants and those whose circumstances changed meaning a change in their claim.
We reported how Universal Credit payments could be set to rise by 1.7 per cent in April if a benefits freeze is ended.
But we also warned how benefits and Universal Credit claims are to be decided by robots – and the poorest claimants could be hit the hardest.
The Sun has contacted the Department for Work and Pensions for comment and we’ll update this story if we get one.
