October has barely got going, but there have already been some major changes to benefits and other Government payouts.
For some it’s good news, with a string of people on universal credit seeing extra cash coming this month.
For some, it’s less good news – with the latest changes to state pension ages meaning people now have to wait until at least their 66th birthday.
For others it’s a case of being wary – with changes to furlough seeing bosses get less Government cash, and employees needing to be watchful with their pay packets to ensure they’re not short-changed.
Here are the major changes happening in October – and what it means for you – in more detail:
From October 1, the Government will scale back its contributions for the second time since the scheme was launched.
The Government’s grant will fall to 60% of wages, up to the value of £1,875.
Employers will have to pay national insurance contributions, pension contributions and 20% of wages to take the total to 80% (or £2,500).
But it’s wise to check your pay slip to make sure you salary hasn’t fallen – with Martin Lewis warning in the past that some firms might forget to update their records to account for the drop off in Government funds.
People who lost out when they were moved from other benefits to Universal Credit are in line for a boost of up to £405 a month from October.
Eligible claimants will see their payments get a sudden rise of £120, £285 or £405.
The rise is designed to bridge the gap between the old benefits and Universal Credit.
The payment drop affected those who switched to Universal Credit from Income Support, Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), Housing Benefit or Pension Credit, if they were also receiving a top-up allowance called Severe Disability Premium (SDP).
When moved from those ‘legacy benefits’ on to Universal Credit they discovered the amount they received was far lower. This change is designed to cover that loss.
From Tuesday, 6 October, you will need to be at least 66 before you can start claiming your state state pension.
It’s the latest move to push back when you are able to get your hands on the money, following a string of rises over the past 10 years.
In some cases, it means women are waiting as much as 6 years longer to claim than they originally thought.
Pete Glancy, head of policy at Scottish Widows, said: “As people live longer, it’s clear many will also have to work for longer.
“The increase to the state pension age provides a timely reminder to everyone to check your pension pots and ask yourself whether the savings you’ve built up are enough for the kind of life you want in retirement.”
-- to www.mirror.co.uk