Therese Coffey says decision on Universal Credit cut due 'shortly'
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The Chancellor is reportedly in talks to give six million vulnerable households a one-off £1,000 Universal Credit support grant under plans to scrap a £20-a-week lifeline in April.
Sources said the initiative would replace the £1,040 a year Universal Credit increase introduced last year, despite MPs voting to extend the support amid rising Covid infection rates.
It's understood that as many as 6million people could qualify for it, with Rishi Sunak claiming it could help reboot the economy.
But what do the payments mean for you - who qualifies and how can you access it?
We take a look at the small print as ministers prepare to cut back on Covid support.
Will I qualify for the £1,000 payment?
© PAMPs have voted against a plans to cut Universal Credit by £20-a-week in April - but the government is refusing to be bound by the decision
It is understood that the payments would replace the extra £20 a week - or £1,040 a year - boost introduced last April to help finance those who had lost their jobs - or income - during the pandemic.
It would be available to benefit claimants - mainly those facing a financial crisis, such as unemployed or unable to cover essential expenses.
Is it better than the extra £20 a week allowance?
Universal Credit was raised by £1,040 for the 2020/21 financial year to help with the impact of coronavirus.
But that "temporary" rise is currently due to end on April 12, when the standard allowance will fall back down to pre-pandemic levels. The average household will lose £84 as a result.
Chancellor Rishi Sunak is reluctant to make the £20-a-week rise permanent because it would add at least £6billion a year to public spending.
Instead, he is understood to be consulting on a one-off payment of between £500 and £1,000.
The payment would be up-front, meaning you would have to better organise your finances to make it last.
Right now, the £84 extra is paid monthly, which means you can't overspend.
On average, it will also be £40 a year less than the current support.
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What has Rishi Sunak said about the payments?
A Government source told The Telegraph Sunak is hoping the one-off payment will help rebuild the economy.
"One of the motivations of the Treasury is they think people will go out and spend it and help stimulate the economy," a source said.
In many ways, it's a combination of the £500 high street voucher scheme and the Universal Basic Income.
However, Universal Credit exists for those who are financially struggling and in around 60% of cases, unemployed, so it's unlikely that the money will be spent on anything beyond essential items.
Will the payment be an alternative to the current £20 a week increase?
Yes. The £1,000 lump sum would be phased in to compensate for the end of the temporary £20-a-week increase in benefits.
More than half of the 5.7million people receiving universal credit have signed on for it since the start of the pandemic. These households will most likely qualify for the latest support.
More financial support for parents
If you're a parent struggling to cover your bills, you may be entitled to extra financial support. See what you're entitled to below.
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You can get free NHS dental treatment if you're pregnant when you start your treatment. To get free NHS dental treatment, you must have a MATB1 certificate issued by your midwife or GP and a valid prescription maternity exemption certificate (MatEx).
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You're also entitled to free NHS dental treatment for 12 months after your baby arrives. To prove your entitlement, you will need to show a valid maternity exemption certificate, a notification of birth form (your midwife will give you this form) and your baby's birth certificate.
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Eligible employees can also take up to 52 weeks' maternity leave. The first 26 weeks is known as 'Ordinary Maternity Leave' and the last 26 weeks as 'Additional Maternity Leave'. The first 6 weeks is paid at 90% of average weekly earnings (AWE) before tax while the remaining 33 weeks is £151.20 or 90% of their AWE (whichever is lower). These are the rules for those claiming Shared Parental Leave instead.
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If your child is below the age of 18 and you don't live with another adult, you can apply for 25% off your council tax.
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All parents can claim Child Benefit. This is a state subsidy of £21.05 a week for your first child and £13.95 a week for subsequent children.
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If you're on sick leave because of coronavirus but don't qualify for sick pay, you can get a one off £500 covid support payment from the government.
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The Healthy Start scheme supports parents with food vouchers. You qualify if you're 10 weeks pregnant or have a child under four and get income support or another benefit. Payment vouchers start from £3.10 a week.
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If you're on a low income, you may be able to claim income support, jobseeker's allowance (JSA), or housing benefit - which can help with rent. Here's a guide to benefits.
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If you've a three or four year old child, you can register for the government's 30 hours free childcare scheme on top.
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The Care to Learn scheme can help with childcare costs for parents still in education. It's £160 per child per week if you live outside London or £175 per child per week if you live in London. All payments will go directly to your childcare provider.
- As well as the above, there are also water bill discounts, free prescriptions, free school travel (and uniform relief ) and energy bill discounts that you can claim.