How Has Universal Credit Changed in 2022? General

2022 saw a noticeable shift in the Universal Credit system. These shifts will affect millions of people throughout the United Kingdom, including working people, those looking for work, and those who are unable to work. In order to give our readers an idea of how these benefit changes will affect them, Building Better Opportunities have put together this article with the most applicable of these changes collected in one place. 

Without further ado let’s go through these changes. 

Change 1: National Insurance Contributions

From April 6th, 2022 until April 5th 2023, National Insurance contributions will rise by 1.25%. This increase will apply to the following groups: 

  • Class One (paid by employees)
  • Class Four (paid by those who are self-employed)
  • Secondary Class One – 1A & 1B (both of which are paid by employers)

However, these benefits will not affect you if you are above the state benefit age. 

How the Benefits Will Change in 2022-2023 compared to 2021-2022

The Employee class one rate will change thusly: 

  • Rates for 2021-22: 12% / 2%
  • Rates for 2022-23: 13.25% / 3.25%

At the same time, the threshold at which rates become payable in 2021-22 is £9,568

The employer class one rate will change thusly:

  • Rates for 2021-22: 13.8%
  • Rates for 2022-23: 15.05%

The threshold at which rates become payable in 2021-22: £8,840

Self-employed class four main rate/higher rate:

  • Rates for 2021-22: 9% / 2%
  • Rates for 2022-23: 10.25% / 3.25%

Threshold at which rates become payable in 2021-22: £9,568

As you can see, the increase in national insurance contributions does mean that working people are paying slightly more than they were. 

Increases in Benefits 

As is standard, state benefits increased from April 11th, 2022. This increase is in line with the consumer price index. As a result, from 2022 – 2023, people who are claiming universal credit can now expect to see an increase in the money they receive from the government. 

This amounts to a 3.1% increase and is being carried on to most other benefits – including working-age benefits, carer benefits, statutory payments, and disability benefits. However, those benefits which are means-tested will see an indeterminate increase 

The State Pension Increased to £141.85. The full rate of the state pension will increase to £185.15. 

Changing to Claiming Procedures

Before the pandemic, it was suggested that claimants without bank accounts would be moved to a Payment Exception Service. However, as a result of the pandemic, that service has now been postponed in favour of the previous system involving post office cards. This service is expected to go live at some point in 2023. 

Welfare Advice in Staffordshire  

Contact Building Better Opportunity today for more Welfare and Employment Support in Staffordshire. We can help you with claiming welfare benefits, finding work experience and work placements, career coaching, and general advice and guidance.