Universal Credit has been a literal lifesaver for many people since March 2020, and now claimants could be getting a bonus payment.
Universal Credit was increased by £20 a week last year to help people through the coronavirus pandemic, but the increase is due to end soon.
But it has been reported that certain claimants who receive Universal Credit could now be getting an extra £1,000.
Chancellor Rishi Sunak is said to be planning to give the boost to six million benefit claimants in an attempt to stave off rebellion over plans to cut weekly payments.
It will amount to an extra £1,040 a year for claimants and will cost £6 billion a year.
The Sunday Telegraph claimed Mr Sunak wants to give everyone on Universal Credit £1,000 in a one-off payment in the hope it will boost the economy.
A Government source reportedly said: "One of the motivations of the Treasury is they think people will go out and spend it and help stimulate the economy."
The paper says the Treasury confirmed a one-off payment was on the table for discussion.
It comes as DWP chief Therese Coffey said she is in "active discussion" with the Treasury about whether to go ahead with the Universal Credit cut on April 12.
The Work and Pensions Secretary said she "hopes" Prime Minister Boris Johnson will announce the final decision "soon".
Ms Coffey refused to say today if she was lobbying for the UC rise to be made permanent, telling BBC Breakfast: "I don’t tend to play out policy discussions through the media.”
She added: "In November I said … we would review this in the new year. That’s exactly what we’re doing, hand in glove with the Treasury, working through to make sure we provide the best support to people throughout this pandemic.
“That’s been a very clear statement by the PM as well.
“I can assure you that we are under active consideration of the options on how to best support people during this time and I hope we will be able to come to a decision soon.”
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