Coronavirus update April 2021

The following page outlines some of the updates, which relate to the budget announcements made by the Chancellor during his budget speech in March 2021.

There are updates, and amendments to certain benefits, as well as the job retention scheme for employers.

Please also feel free to visit our other Coronavirus web pages on debt, energy and general benefit advice.

These are the expected updates, which take effect from April 2021.

Universal Credit - £20 per week uplift

The £20 per week uplift to Universal Credit was originally intended to run until April 2021.

An extension to the uplift has been announced for a further 6 months, which is on top of the scheduled benefit uprating for April 2021.

This will continue to apply to all existing UC claimants, and towards new UC claims from April 2021 until the end of September 2021.

Universal Credit – Self Employed Minimum Income Floor

The suspension of the minimum income floor in UC (originally due to expire in April) has been extended to July 2021.

It will then be gradually introduced with work coaches having discretion as to when it is re-applied.

Universal Credit deductions

The period over which Universal Credit advances can be recovered will increase to 24 months.

The maximum rate at which deductions can be made from Universal Credit will reduce from 30% to 25% of the standard allowance amount.

These measures were scheduled to commence from October 2021, but have been brought forward to April 2021.

Working Tax Credit

A £20 per week uplift to Working Tax Credit (WTC) had been awarded to claimants as a result of the pandemic.

Unfortunately, this will not continue in the same way as the Universal Credit uplift.

Alternatively, one-off payments of £500 will be made instead, to those who were receiving WTC on 2nd March 2021 (and those who would be entitled to WTC if it were not for the level of their earnings).

Payments of this £500 should be made automatically by 23rd April 2021.

Extension to the Coronavirus Job Retention Scheme (CJRS)
The CJRS has been extended until the end of September 2021.

The scheme will continue to pay 80% of employees’ usual wages for hours not worked, capped at £2,500 per month, until the end of June 2021.

From July 2021 - Employers must contribute 10% to furlough pay, the CJRS pays 70% (capped at £2,187.50).

Between August and September 2021 - Employers must contribute 20% towards furlough pay, the CJRS 60% (capped to £1,875).

 

Self-Employment Income Support Scheme (SEISS)

The Government has confirmed the SEISS continues for 2 further grant periods:

  • The 4th grant will cover February to April 2021
  • The 5th grant will cover May to September 2021

 

The SEISS eligibility criteria remain the same, but the 4th and 5th grants will also take into account tax returns for tax year 2019/2020. This means those that became newly self-employed during 2019/2020 may be eligible, but tax returns must have been submitted before 2nd March 2021.

Claims for the 4th grant begin mid-April when HMRC will contact those eligible. The application process closes on 31 May 2021.

HMRC state that more detail for the 5th grant will be available in due course.