Martin Lewis and his Money Saving Expert (MSE) team have issued an alert to more than one million Brits who live in a household that earns less than £35,000.
And if you follow the advice of the finance experts, you could find yourself up to £5,800 better off after having missed out on what you can legally claim.
It is the latest guidance from Lewis’ lot at MSE headquarters and follows on from critical advice that the big man himself issued out earlier this week concerning everyone who bought a car before 2021, with millions lodging claims for compensation.
He’s also taken the time in recent weeks to alert people to the reality of using ‘buy now, pay later’ apps, such as Klarna, ahead of major rule changes coming to them.
Warning to any household earning under £35,000
Through his MSE team, which Lewis still oversees despite selling the company for £87 million in 2012, there is a warning to a total of 1.4 million Brits who are missing out on thousands of pounds.
In particular, it applies to those who live in a house that earns less than £35,000.
The money comes from Universal Credit, a means-tested social security payment given to millions of people in the United Kingdom to help them afford to live.
Money is given out to people in need to help them afford basic living and housing costs; but Lewis’ team warns that middle income earns could be missing out without realising.
Put a claim in, you’ve nothing to lose (ITV)
As well as this, people earning up to £60,000 may also not be claiming what they are legally entitled to – probably due to the assumption that benefits don’t apply to higher earners.
But it doesn’t matter in this case, given that the situation we’re on about is children and the potential of increased childcare costs.
What has Martin Lewis said about Universal Credit?
Speaking to Good Morning Britain on ITV, Lewis previously stated: “Let’s start with Universal Credit; 1.25 million people missing out on an average of around £9,600 a year. Who should be checking if they’re entitled to these benefits?
“OK, so Universal Credit is the catch-all benefit for people of working age to help with living and housing. Now, the crucial thing to understand here is this is not just for people out of work. 41 percent of Universal Credit applicants are people who get Universal Credit and are in work.”
Universal Credit is paid to millions in the UK (Peter Dazeley/Getty Images)
Lewis added: “But you could be income stretching up to £40,000 a year of family income. If you’ve got children and you’re paying for childcare and you’re paying for rent, you could still be entitled to Universal Credit. So that’s my rule of thumb family income, below 40 grand.
“Get yourself on an online benefits calculator. It will take about 10 minutes. Put your details in and see if you’re entitled to this. And even if you checked a year ago because the thresholds went up in April. There are a few people not too many, but a few people who are now eligible who weren’t eligible before.”
Over on the Universal Credit website, run by the government, it says that people ‘may be able to get Universal Credit if you’re on a low income or need help with your living costs’.
It adds: “You could be: out of work, working (including self-employed or part time) or unable to work, for example because of a health condition.”
One rule that all Universal Credit applicants have to abide by to get the benefit is to have less than £16,000 in your bank account. That includes savings and investments.
It’s definitely worth checking it out, especially if you earn below then £35,000 mark.
