Households have a little less than two weeks left to take advantage of Covid support programs before closing permanently in England and Wales.
This includes the fifth Coronavirus grant for the self-employed and the reduction in stamp duties, although some benefits, such as the holiday and the universal credit increase of £ 20 per week are now closed to new applicants.
The measures are part of a broader government plan to bring the country back to normal and despite the increase in the number of Covids, the Prime Minister and Chancellor Rishi Sunak have both confirmed that support will neither be restored. nor extended.
Before the last cuts, here’s what you need to know.
1. Closure of the fifth SEISS Covid grant
Independent Britons who were lucky enough to take advantage of the government’s Covid grants will come to an end next month, which means this is your last chance to get up to £ 7,500.
The fifth and final grant ends September 30, so anyone who is eligible should apply as soon as possible if they haven’t already or are at risk of missing out.
The government has said the program will end in accordance with the leave – meaning there will be no more grants after it, but anyone still struggling can find additional support.
If your income has gone down, it is worth checking to see if you can qualify for benefits to supplement low income – many of those who apply for universal credit are also working.
But be aware that the amount you get may be affected by something called the minimum income threshold.
You can use our handy benefit calculator to determine what you may be entitled to.
2. Universal credit increase of £ 20 ends next month
Despite calls for the support to be made permanent, Rishi Sunak has confirmed that the £ 20 increase – the equivalent of £ 80 per month – will be phased out from 6 October.
Universal credit payments are all based on assessment periods – which will determine when the reduction goes into effect for you.
For many, that means September will be the last month they see their universal credit paid off at existing levels.
If your evaluation period ends on or after October 6, you will receive the new lower universal credit amount.
The DWP says it will update claimants’ statements and log messages “with clarification that [the uplift] will no longer be included in their standard allowance “in the coming weeks.
To view your journal and universal credit statement, you must log into your online account.
Should the uprising be permanent? Let us know in the comments below
Charity Turn2Us previously warned that removing the increase could see 500,000 people “trapped in poverty overnight” and thousands forced into food banks.
Resolution Foundation CEO Torsten Bell said: “It is a very bad idea to remove the temporary increase in universal credit by the end of September.
“This is happening exactly when unemployment is expected to rise.
“It takes 7% of the income of Britain’s poorest families in the second half of this year.
“The Chancellor shouldn’t be doing this. It will also bring the base level of benefits down to levels we haven’t seen since the early 1990s.”
When the cuts take effect, applicants will lose £ 20 per week from their benefit payments.
The full scope of how this will affect you will be added to your online statement.
To give an estimate, here is what you might receive from October 1 to the end of the tax year.
- Single and under 25: increased flat-rate compensation increased from £ 344 to £ 257.33
- Single and 25 years of age or over: Standard allowance with supplement will increase from £ 411.51 to £ 324.84
- Joint applicants both under the age of 25: Standard allowance with supplement will increase from £ 490.60 to £ 403.93
- Joint applicants one or both of whom are 25 years of age or older: The standard supplement with supplement will be increased from £ 596.58 to £ 509.91 in total.
3. The leave ends
The leave will not be extended beyond September, the Chancellor confirmed, marking what will be one of the biggest cuts for more than a million workers.
Currently the government pays 60% of wages up to £ 1,875, employers pay 20%, plus national insurance and pension contributions.
The employer must then supplement up to 80% of his salary – up to a maximum of £ 2,187.50.
The leave scheme was of some sort a saving grace for many employers as foreclosure restrictions were in place.
However, no further extension means employers will have to make internal arrangements for their staff if they cannot return to work.
If you are concerned that your job may be at risk, check out our guide to termination rights on leave, here.
4. The stamp duty will be fully restored
The stamp duty holiday will end at the end of September after being introduced at the height of the pandemic to keep the real estate market stimulated.
Initially, the tax break applied to homes in England and Northern Ireland worth up to £ 500,000, but that ended on July 1.
Buyers can still benefit from no stamp duty on the first £ 250,000 of any primary residential property in England and Northern Ireland until September 30.
However, the full tax will be reintroduced in England and Northern Ireland on October 1.
Under the normal rate, a stamp duty is applied to houses valued over £ 125,000. Anything between £ 125,000 and £ 250,000 is subject to a 2% tax, followed by 9% up to £ 925,000 and 10% up to £ 1.5million.
If you are a first-time buyer, you don’t pay this tax on homes worth up to £ 125,000 or £ 300,000. Any excess between £ 300,000 and £ 500,000 is taxed at 5%.
Stamp duty is a tax levied when you buy a property – although it is referred to as ‘land and property transaction tax’ in Scotland and ‘land transaction tax’ in Wales.
5. Covid Local Support Grant
Families in England struggling with the costs of food and utilities have just two weeks left to get additional help from the government.
Indeed, the Covid local support grant will end on September 30.
This is a £ 429million grant the government has given to councils to support families in need during the Covid pandemic.
The councils used the money to help residents pay their utility bills and buy food.
Support is provided by central government, but it will be up to local councils to decide who will receive the grants.
This means that each local authority has different criteria for applications and eligibility – they also received different amounts of money.
You should contact your town hall directly to see what support it can offer you – find your town hall online here.
Generally, at least 80% of the total funding is allocated to households in difficulty with children.
The food element could take the form of cash, food vouchers or boxes, with support to be decided by the board.
Learn more about how to claim support, here.