91�ȱ�

Most social security benefits are paid by the UK Government. Benefits are provided through the Department for Works and Pensions (DWP).

Welfare policies include tax credits, Employment Support Allowance (ESA), National Living Wage (NLW), Education Maintenance Allowance (EMA), Universal Credit and Sure Start.

What is Universal Credit?

Universal Credit is a payment to help people on low incomes with living costs. It is normally paid monthly. Some people in Scotland receive payments twice a month.

Universal Credit is expected to replace several other benefits such as Housing Benefit and Jobseekers Allowance.

In return for receiving Universal Credit, people who are unemployed must look for work or take steps towards it. This may include:

• preparing a CV
• attending training courses
• applying for suggested vacancies
• registering with a recruitment agency

In most cases they must also be available and willing to immediately take up work and attend interviews to discuss plans and opportunities for returning to the workplace.

Universal Credit claimants must accept a claimant commitment and if they refuse, they will not be entitled to Universal Credit. If the claimant does not do what he or she has committed to do, they will face tough penalties such as their benefit being reduced or withdrawn for up to three years.

In the UK, access to social security benefits is often means-tested and most benefit payment levels are very low. For example, a single person under the age of 25 years receiving Universal Credit will receive a monthly payment of £292.11 (£73.02 per week).

What is Child Benefit?

Child Benefit is a tax-free payment that is aimed at helping parents cope with the cost of bringing up children. However, changes to the rules came into force in January 2013, and all parents are no longer entitled to Child Benefit. Families where one parent is earning more than £50,000 a year cannot claim the full amount. Those who are eligible for the full payment can claim a weekly benefit of £25.60 (first child) or £16.95 (additional child) in 2024.

The payments apply to all children aged under 16 or who stay on at school. Child Benefit will continue to be available in addition to Universal Credit, but payments for children are now means-tested.

What are state pensions?

State Pension (or New State Pension) - A weekly payment of £203.85 to those who have reached retirement age (2023/24). Pensioners (and other groups) may also qualify for additional support such as Pensions Credit – a top-up benefit where a pensioner’s total income falls below a certain level. (Source: Gov.uk) In 2023-24, the UK government will spend £124.3 billion on pensions. (Source: UK Parliament)

What is the Cost of Living Payment?

The Cost of Living Payment, is three one-off payments, totalling £900, to people who receive certain benefits such as Universal Credit or Pension Credit.

There are a wide range of other benefits available to those in need in society, including Personal Independence Payment (PIP) – extra money to help people who experience illness, disability or a mental health condition or Attendance Allowance, which is paid to some people who need help with their care or have a disability or illness.

What is National Living Wage?

The National Living Wage (NLW) is the minimum pay per hour, which workers must receive by law. From April 2024 the rate was £11.44 for people aged 21 and over.

Workers who are under the age of 21, are entitled to the National Minimum Wage (NMW). The wage rate per hour depends on their age and if they are an apprentice.

Despite the NLW/NMW, many jobs such as catering, cleaning and care sector jobs, are low paid. People working in these types of jobs on the NLW/NMW often don’t earn enough money to make ends meet. They are said to experience “in-work poverty” as their income is not high enough to lift them out of poverty. Anti-poverty campaigners have called for higher hourly wage rates or a Real Living Wage of at least £10.90 per hour (2023).

In some ways, it’s harder to be low paid than unemployed, as the person may not be entitled to the same benefits the unemployed are. One in seven referrals to Trussell Trust foodbanks are for people who are in employment – mostly part time.

Critics of the UK government believe the National Living Wage is not sufficient. The Living Wage Foundation believes the real Living Wage, independently calculated and based on what people need to get by should be £12 across the UK and £13.15 for workers in London (in 2023)