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What is Universal Credit
Universal Credit has replaced these benefits for most people:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Child Tax Credit
- Working Tax Credit
- Income Support
You might be able to get Universal Credit if you’re not working or you’re on a low income.
Universal Credit works differently from the old benefits – so it’s important to know the differences.
The biggest differences are:
- you can get Universal Credit if you’re unemployed but also if you’re working
- you’ll usually get a single payment each month, rather than weekly or fortnightly
- instead of getting a separate housing benefit, your rent will usually be paid directly to you as part of your monthly Universal Credit payment
Check if you can get Universal Credit
Universal Credit is a benefit you can claim if you’re on a low income or unemployed.
It might be worth claiming Universal Credit if:
- you’re struggling to pay the bills
- you’ve lost your job and have no income
- your income has dropped but you’re still working
- you have a disability or illness that stops you working
- you have childcare costs
- you’re caring for someone
If you already get other benefits, you might have to move to Universal Credit instead.
There’s no set level of income where you stop being eligible for Universal Credit – it depends on your situation.
Who can get Universal Credit
To get Universal Credit you must:
- be 18 years old or over – or in some cases 16 or 17
- be under State Pension age – check your State Pension age if you’re over 60 years old.
- live in the UK – there are extra rules if you’re not a British citizen
You must usually have less than £16,000 in savings or other investments – called ‘capital’. Capital doesn’t include your pension pot or the home you live in. If you live with a partner, their income and capital will be taken into account.
If you have more than £16,000 in capital, you might still be able to get Universal Credit for up to a year. This applies if you get tax credits and you’ve had a letter from the DWP telling you to move to Universal Credit by a certain date.
You can get Universal Credit if you’re living with other people but it might affect how much you get. For example, living with parents might mean you get less help with housing costs.
You can get Universal Credit if you’re self-employed – the application process is the same. Whether you’ll be able to get Universal Credit depends on your situation.
If you’re already claiming benefits or tax credits
Universal Credit is gradually replacing:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Child Tax Credit
- Working Tax Credit
- Income Support
You can usually stay on one of these benefits unless:
- something about your situation has changed – not every change means you need to claim Universal Credit
- you’ve had a letter from the DWP telling you to move to Universal Credit by a certain date – this is called a ‘migration notice’
If you’ve had a letter, you only have to move to Universal Credit if it’s an official migration notice.
Starting your Universal Credit claim
You should first check if you’re eligible for Universal Credit.
If you’re eligible, you’ll usually have to apply for Universal Credit online on the gov.uk website.
You’ll then get an online account which you’ll use to apply for Universal Credit and keep your claim up to date.
You’ll need an email address and a phone number to create an online account.
You can find out how to get an email address on the Which? website.
If you’re reapplying for Universal Credit, you might not have to go through the full application process again.
Applying for Universal Credit
If you haven’t already, you should check you’re eligible for Universal Credit.
If you’re already on benefits, you should check if you need to move on to Universal Credit. You might need to move if:
- your situation changes – for example if you separate from your partner or move to a different council area
- you get a letter from the Department for Work and Pensions (DWP) telling you to claim Universal Credit by a certain date
How to apply for Universal Credit
You’ll usually have to apply for Universal Credit online. The first thing you need to do is set up an online account – you’ll use this to apply and manage your claim. You might be able to apply by phone in special circumstances.
Then you’ll need to complete 4 more steps before you can get Universal Credit. You’ll need to:
- answer questions about your situation – this is called your ‘to-do list’
- confirm your identity – you can do this online or in person
- book an appointment with your work coach – you’ll meet them regularly as part of your Universal Credit claim
- speak to your work coach at the Jobcentre or on the phone – they’ll check your details and agree what tasks you’ll do regularly to get Universal Credit
Make sure you complete all of these steps – you’ll need to do them all before you can get your Universal Credit payment.
Help to Claim
Our Help to Claim advisers can help you with the early stages of your Universal Credit claim. You can talk to them on the phone, online over chat or using our British Sign Language (BSL) service.
Our advisers can help you:
- work out if you can get Universal Credit
- fill in the Universal Credit application
- prepare for your first Jobcentre appointment
- check your first payment is correct
You can contact an adviser through our free Help to Claim phone service.
Advisers are available 8am to 6pm, Monday to Friday: 0800 144 8 444
How Universal Credit works
You’ll usually get one monthly payment to cover your living costs. If you claim Universal Credit as a couple, you and your partner will get one payment between the 2 of you. The payment is made up of a basic ‘standard allowance’ and extra payments that might apply to you depending on your circumstances.
You might be able to get extra payments if you:
- look after one or more children
- work and pay for childcare
- need help with housing costs
- are disabled or have a health condition
- are a carer for a disabled person or you have a disabled child
If you get help with rent
If your UC payment includes help with rent, you’ll usually need to pay your landlord each month from your Universal Credit payment, even if you live in social housing. You can ask the DWP to pay your rent directly to your landlord if you’re in debt, have rent arrears or are struggling with money.
If you’re working
You can work and still get Universal Credit – your Universal Credit will reduce gradually as you earn more. Your Universal Credit will go up if your job ends or you earn less.
If you’re self-employed, your payment might also be affected by how much the DWP expect you to earn each month – this expected amount is called your ‘minimum income floor’.
Claiming other benefits if you get Universal Credit
You should apply for Council Tax Reduction – if you get it, it won’t reduce the amount of Universal Credit you get.
If you’re disabled, you should check if you’re eligible for Personal Independence Payment (PIP). If you’re responsible for a disabled child, you should check if you can claim Disability Living Allowance (DLA) for your child. Getting PIP or DLA won’t reduce the amount of Universal Credit you get.