The measures announced by the Chancellor to help individuals in financial difficulty during the coronavirus outbreak are set out below.
Universal Credit (UC) and Working Tax Credit (WTC)
The UC standard allowance and WTC basic element have been temporarily increased by £1,000 a year. The UC standard allowance has increased by £86.67 per month (equivalent to £20 per week), on top of the planned annual uprating. The WTC basic element has also increased by £20 per week, on top of the planned uprating. These increases are automatically reflected in awards to individuals.
The requirements of the Universal Credit Minimum Income Floor have been relaxed to reflect any loss in earnings caused by coronavirus, to help claimants (including the self-employed) who are adversely affected during this period. Individuals can also claim Universal Credit and access advance payments upfront without the current requirement to attend a job centre.
A 3 month mortgage holiday has been instituted, meaning that individuals affected by coronavirus will not make any payments whatsoever towards their mortgages whilst this is ongoing. Eviction proceedings have been banned for an initial 3 months, to prevent tenants in financial difficulty from losing their rental properties.
All Local Housing Allowance rates have been uplifted to the 30th percentile of market rents. This is worth an extra £14 a week on average for the 1.2 million existing claimants and any additional Universal Credit claimants who rent in the private sector.
The Chancellor's letter is available in full PDF format at the bottom of this page.
Further information about financial support for individuals can be found on the Government website.
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