Martin Lewis' MSE says people earning below £35,000 can claim free £5,800

Martin Lewis says people earning £35,000 or less can claim £5,800 from the Department for Work and Pensions. 1.4 million people are failing to receive an average of £5,800 a year in Universal Credit payments, particularly those earning under £35,000, Mr Lewis has said.

BBC and ITV star Mr Lewis says on the Money Saving Expert website: "You may be able to get Universal Credit if you're on a low income or need help with your living costs. You could be: out of work, working (including self-employed or part time) or unable to work, for example because of a health condition."

MSE states: "UNIVERSAL CREDIT - 1.4 MILLION miss out on an average of up to £5,800 a year." It adds: "The catch-all monthly benefit to support those of working age (with low or no income) with living and housing costs. Who's likely missing out?

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"Households with lower incomes, up to roughly £35,000/yr, though if you've kids, high childcare costs and rent, it could be £60,000/yr." The Government has announced that from April 2025 Universal Credit payments will increase by 1.7%, and the amount that can be taken from your standard allowance to repay debts will be reduced from 25% to 15%.

If you owe money to a company, they might be able to apply for part of your Universal Credit payments to go to them instead of you. This is called a 'third party deduction'. At the moment, the third party deduction can be up to 25% of your Universal Credit standard amount. The standard amount is the basic amount you can get before things like childcare and housing costs are added.

The Autumn Budget will lower the amount that can be taken from your Universal Credit standard amount to 15%. This is likely to change in April 2025.