UNIVERSAL Credit claimants were today given more help with crippling mortgage repayments.
Jeremy Hunt’s Autumn Statement will allow benefit recipients to take out a loan to ease rising interest costs after three months rather than nine.
It is one several major wins for UC claimants dished out by the Chancellor who threw an arm around the poorest.
In the financial package the Treasury said: “To support mortgage borrowers with rising interest rates during periods of low-income, from spring 2023, the government will allow those on Universal Credit to apply for a loan to help with interest repayments after three months, instead of nine.
Read more about Jeremy Hunt’s plans on the Autumn Statement live blog.
“The government will also abolish the zero earnings rule to allow claimants to continue receiving support while in work and on Universal Credit.”
Interest rates are rising to tackle soaring inflation, which Mr Hunt vowed to “relentlessly fight” to wrestle down.
New policies confirmed in the Autumn Statement:
- Energy Price Guarantee to be cut – average household bill will climb from £2,500 to £3000
- Triple lock to stay and pensions to rise in line with inflation
- Benefits to rise in line with inflation
- Households on means tested benefits to receive a £900 cost of living payment, alongside a £300 payment for pensioners and £150 disability payment
- National living wage to rise by 10 per cent to £10.40/hr
- Minimum wage for 21-22 year olds rises to £10.18/hr
- Minimum wage for 18-20 year olds rises to £7.49/hr
- Freeze on income tax thresholds until 2028
- Extended windfall tax on oil and gas companies raking in mega profits
- £150,000 threshold for the additional rate of income tax lowered to £125,140
- From 2025 electric vehicles will no longer be exempt from vehicle excise duty
- An extra £2.3bn per year will be invested into schools
- An extra £2.7bn for social care over the next two years
- An extra £6.6bn for the NHS over the next two years
- £600bn of investment in the Sizewell C nuclear plant, Northern Powerhouse Rail, HS2 to Manchester, gigabit broadband rollout and a new hospitals programme
The Chancellor also unveiled a huge cost of living package for the most vulnerable to help cushion the cost of rising bills.
Eight million benefit claimants will receive a whopping £900 payment from the Government.
Poorer pensioners will get an extra £300 and there will be another £150 disability payment.
Meanwhile both pensions and benefits will rise by 10.1 per cent with inflation.
Mr Hunt said: “In the face of unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many others are worried about the future.
“So today we deliver a plan to tackle the cost of living crisis and rebuild our economy.
“Our priorities are stability, growth, and public services. We also protect the vulnerable because to be British is to be compassionate and this is a compassionate Conservative government.”
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