logo
Universal Credit - Guidance
  • 05 April, 2020

Increased support available through tax credits and Universal Credit

The UK Government has made some changes to the support available through working tax credits and Universal Credit, which will provide some help to individuals and self-employed who may have lost their job or seen a reduction in their salaries or income

Increases in the standard rates

The standard rate for Universal Credit and tax credits will both increase by £20 a week for one year from 6 April 2020. This increase is in addition to the increase already announced, meaning claimants will be up to £1,040 better off.

The standard monthly allowances for Universal Credit are:

REQUISITES

MONTHLY STANDARD ALLOWANCE 2020/21

MONTHLY STANDARD ALLOWANCE 2019/20

Single and under 25

£342.72

£251.77

Single and 25 or over

£409.89

£317.82

Couple both under 25

£488.59

£395.20

Couple and either person is 25 or over

£594.04

£498.89

 

Support for rental payments

The government has significantly increased the support available for rent payments for those claiming Universal Credit. From April, local housing allowance rates will cover at least 30% of market rents in each area. For instance, for a two-bed home in London, the maximum was £1,390 per month and it could now be as high as £1,550 per month. The housing element of Universal Credit can also be used to cover mortgage interests and service charges.

Additional allowances are available to those with children. For 2019/20 these are:

1. First child: £277.08 (born before 6 April 2017) or £231.67 (born on or after 6 April 2017).

2. The second child and any other eligible children: £231.67 per child.

Childcare costs

Up to 85% of the childcare costs will be covered (for 2019/20 up to £646.35 per month for one child and £1,108.04 per month for two or more children).

Advance and hardship payments

For those who do not have enough to live on while waiting for the first payment, it will be possible to ask for an advance payment, after the claim has been made. The maximum amount which is possible to get is equal to the estimated amount of the first payment of the Universal Credit.

People who can’t afford to pay their rent, heating, food and/or personal hygiene goods because of a sanction can also ask for a hardship payment.

The way the reimbursement of the advance payments works is through the Universal Credit payments. The payments will be lower (the amount will depend on the number of months agreed to repay the advance payment) until when it will be entirely repaid.

Alternative Payment Arrangements

Whether somebody faces financial difficulties in paying the rent, the tenant or the landlord can apply for an Alternative Payment Arrangement (APA).

Depending on the circumstances, it is possible to get an APA to:

  • pay the rent directly to the landlord;
  • get paid more frequently than once a month;
  • receive split payments from those part of a couple;

Budgeting Advance

People might be able to get a Budgeting Advance to cope with:

  • emergency household costs, such as replacing a broken cooker;
  • getting a job or essential costs to continue working;
  • funeral costs.

The reimbursement will be made through the regular Universal Credit payments, which will be lower until when the anticipated payment is completed repaid. If the Universal Credit payments are stopped, the anticipated payment must be repaid in other ways.

How much it can be borrowed

The smallest amount which is possible to borrow is £100. People can get up to:

  • £348 if they are single;
  • £464 if they are part of a couple;
  • £812 if they have children.

The amount which can be borrowed depends on whether the applicant has savings of over £1,000 and his/her ability to repay the loan.

Eligibility

To get a Budgeting Advance, all of the following conditions must apply:

  • Having applied to one of the known government schemes:
    • Universal Credit;
    • Employment and Support Allowance (ESA), whether there is a disability or a health condition which influence the ability to work;
    • Income Support, that is a support for some low-income people (pregnant women, a single parent with a child under the age of five or, in some cases, a person unable to work because sick or disabled).
    • Jobseeker’s Allowance or State Pension Credit for at least 6 months, unless the money is needed to start a new job or is essential to continue working.
  • Having earned less than £2,600 (£3,600 for couples) in the past 6 months;
  • Having paid off any previous Budgeting Advance loans.

Category: Blog

Post a comment

To post a comment you must be registered. If you are already registered you can login.

Register

Tick this box to indicate that you have read and understood the terms and condition of the Privacy Policy

Privacy Policy

BACKGROUND:

User understands that your privacy is important to you and that you care about how your personal data is used and shared online. We respect and value the privacy of everyone who visits this website, www.well-tax.com (“Our Site”) and will only collect and use personal data in ways that are described here, and in a manner that is consistent with Our obligations and your rights under the law.

Please read this Privacy Policy carefully and ensure that you understand it. Your acceptance of Our Privacy Policy is deemed to occur upon your first use of Our Site. If you do not accept and agree with this Privacy Policy, you must stop using Our Site immediately.

1. Definitions and Interpretation

In this Policy, the following terms shall have the following meanings:

“personal data”

means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and

“We/Us/Our”

means WellTax Limited, a limited company registered in England and Wales under company number 09572130 whose registered address is 402a City Gate House, 246-250 Romford Road, London E7 9HZ.

2. Information About Us

• Our Site is owned and operated by WellTax Limited, a limited company registered in England and Wales under company number 09572130 whose registered address is 402a City Gate House, 246-250 Romford Road, London E7 9HZ.

• Our VAT number is GB 221 1287 52.

• Our Data Protection Officer is WellTax Limited and can be contacted by email at info@well-tax.com, by telephone on +44 (0) 20 3581 1717, or by post at https://well-tax.com/contact.

• We are regulated by the ICO (Information Commissioner’s Office, https://ico.org.uk/).

3. What Does This Policy Cover?

This Privacy Policy applies only to your use of Our Site. Our Site may contain links to other websites. Please note that We have no control over how your data is collected, stored, or used by other websites and We advise you to check the privacy policies of any such websites before providing any data to them.

4. Your Rights

• As a data subject, you have the following rights under the GDPR, which this Policy and Our use of personal data have been designed to uphold:

• The right to be informed about Our collection and use of personal data;

• The right of access to the personal data We hold about you (see section 12);

• The right to rectification if any personal data We hold about you is inaccurate or incomplete (please contact Us using the details in section 13);

• The right to be forgotten – i.e. the right to ask Us to delete any personal data We hold about you (We only hold your personal data for a limited time, as explained in section 6 but if you would like Us to delete it sooner, please contact Us using the details in section 13);

• The right to restrict (i.e. prevent) the processing of your personal data;

• The right to data portability (obtaining a copy of your personal data to re-use with another service or organisation);

• The right to object to Us using your personal data for particular purposes; and

• Rights with respect to automated decision making and profiling.

• If you have any cause for complaint about Our use of your personal data, please contact Us using the details provided in section 13 and We will do Our best to solve the problem for you. If We are unable to help, you also have the right to lodge a complaint with the UK’s supervisory authority, the Information Commissioner’s Office.

• For further information about your rights, please contact the Information Commissioner’s Office or your local Citizens Advice Bureau.

5. What Data Do We Collect?

Depending upon your use of Our Site, We may collect some or all of the following personal data:

• name;

• date of birth;

• gender;

• business/company name;

• job title;

• profession and studies;

• contact information such as email addresses and telephone numbers;

• demographic information such as post code, preferences, and interests;

• IP address;

• web browser type and version;

• operating system;

• a list of URLs starting with a referring site, your activity on Our Site, and the site you exit to;

6. How Do We Use Your Data?

• All personal data is processed and stored securely, for no longer than is necessary in light of the reason(s) for which it was first collected. We will comply with Our obligations and safeguard your rights under the GDPR at all times. For more details on security see section 7, below.

• Our use of your personal data will always have a lawful basis, either because it is necessary for Our performance of a contract with you, because you have consented to Our use of your personal data (e.g. by subscribing to emails), or because it is in Our legitimate interests. Specifically, We may use your data for the following purposes:

• Supplying Our services to you (please note that We require your personal data in order to enter into a contract with you);

• Personalising and tailoring Our services for you;

• Replying to emails from you;

• Supplying you with emails that you have opted into (you may unsubscribe or opt-out at any time by sending an email to info@well-tax.com specifying that you no longer want us to keep your data;

• Market research;

• With your permission and/or where permitted by law, We may also use your data for marketing purposes which may include contacting you by email, telephone, text message, and post with information, news, and offers on Our services. We will not, however, send you any unsolicited marketing or spam and will take all reasonable steps to ensure that We fully protect your rights and comply with Our obligations under GDPR and the Privacy and Electronic Communications (EC Directive) Regulations 2003.

• You have the right to withdraw your consent to Us using your personal data at any time, and to request that We delete it.

• We do not keep your personal data for any longer than is necessary in light of the reason(s) for which it was first collected. Data will therefore be retained for the following periods (or its retention will be determined on the following bases):

• In the “Newsletter Section” data will be kept for an unlimited period, however, an unsubscribe option will be available for the individual that would like to opt out.

• In the “Post a Comment Section” data will be kept for an unlimited period, however, the individual could always unsubscribe by sending an email to info@well-tax.com.

• In the “Contact Us”, “Get in Touch” and “Careers” section data will be kept for two years, allowing Welltax Limited to have a reasonable amount of time to contact potential customers and employees.

7. How and Where Do We Store Your Data?

• We only keep your personal data for as long as We need to in order to use it as described above in section 6, and/or for as long as We have your permission to keep it.

• Your data will only be stored in the UK.

• Data security is very important to Us, and to protect your data We have taken suitable measures to safeguard and secure data collected through Our Site.

• Steps We take to secure and protect your data include:

• Encrypted Hard Disc Data

• Website Control Panel locked with password

8. Do We Share Your Data?

• Subject to section 8.2, We will not share any of your data with any third parties for any purposes.

• In certain circumstances, We may be legally required to share certain data held by Us, which may include your personal data, for example, where We are involved in legal proceedings, where We are complying with legal obligations, a court order, or a governmental authority.

9. What Happens If Our Business Changes Hands?

• We may, from time to time, expand or reduce Our business and this may involve the sale and/or the transfer of control of all or part of Our business. Any personal data that you have provided will, where it is relevant to any part of Our business that is being transferred, be transferred along with that part and the new owner or newly controlling party will, under the terms of this Privacy Policy, be permitted to use that data only for the same purposes for which it was originally collected by Us.

• In the event that any of your data is to be transferred in such a manner, you will not be contacted in advance and informed of the changes.

10. How Can You Control Your Data?

• In addition to your rights under the GDPR, set out in section 4, when you submit personal data via Our Site, we aim to give you strong controls on Our use of your data for direct marketing purposes (including the ability to opt-out of receiving emails from Us which you may do by unsubscribing using the links provided in Our emails and at the point of providing your details).

• You may also wish to sign up to one or more of the preference services operating in the UK: The Telephone Preference Service (“the TPS”), the Corporate Telephone Preference Service (“the CTPS”), and the Mailing Preference Service (“the MPS”). These may help to prevent you receiving unsolicited marketing. Please note, however, that these services will not prevent you from receiving marketing communications that you have consented to receiving.

11. Your Right to Withhold Information

You may access certain areas of Our Site without providing any data at all. However, to use all features and functions available on Our Site you may be required to submit or allow for the collection of certain data.

12. How Can You Access Your Data?

You have the right to ask for a copy of any of your personal data held by Us (where such data is held). Under the GDPR, no fee is payable and We will provide any and all information in response to your request free of charge. Please contact Us for more details at info@well-tax.com, or using the contact details below in section 13.

13. Contacting Us

If you have any questions about Our Site or this Privacy Policy, please contact Us by email at info@well-tax.com, by telephone on +44 (0) 20 3581 1717, or by post at https://well-tax.com/contact. Please ensure that your query is clear, particularly if it is a request for information about the data We hold about you (as under section 12, above).

14. Changes to Our Privacy Policy

We may change this Privacy Policy from time to time (for example, if the law changes). Any changes will be immediately posted on Our Site and you will be deemed to have accepted the terms of the Privacy Policy on your first use of Our Site following the alterations. We recommend that you check this page regularly to keep up-to-date.

Login
Let us keep you updated with our Newsletter