A BUSINESS advisor has expressed his concern about a group of people that could be hit particularly hard later this year.
Chancellor Rishi Sunak revealed his budget for 2021 and announced that there would be changes made to those claiming Universal Credit.
Whiteley-based business advisor, Colin Bielckus said that the changes could be a shock to the system for people claiming the benefits, as those who were able to receive £20 per week, will no longer be entitled to the extra cash from the end of September.
Colin said: ‘Although the extra payments have been extended, it will still hit people hard and it could be the difference between someone being able to afford shopping for the week and not.
‘It’s good news and definitely a positive that corporation tax has risen, as it means we’ll be able to claw back some of the money spent during the pandemic in the next few years and those of us on “normal” incomes will contribute through the freezing of personal allowances, but it doesn’t seem fair that the people who need it the most are also losing out.
‘A lot of people aren’t eligible for the Self-Employed Income Support Scheme, so are relying on Universal Credit to get by and it could affect them negatively to cut this extra income so suddenly.’
The Universal Credit uplift was due to end on April 6, but has been extended until September 31, however after this date, claimants will no longer receive any additional income support on top of existing benefits.
The amount each person receives varies, but changes mean that a single person aged 25 or over will go from receiving a monthly payment of £409.89 to a monthly payment of £317.82.