Universal Credit is a social security payment system in the United Kingdom that was introduced in 2013 and has gradually replaced several other forms of benefits, such as Income Support, Jobseeker’s Allowance, Housing Benefit, Working Tax Credit, and Child Tax Credit.

Universal Credit is designed to provide financial support to people who are on a low income, out of work, or unable to work due to illness or disability. It is a means-tested benefit, which means that the amount of support you receive depends on your income and financial circumstances.

To claim Universal Credit, you must be over 18 and under State Pension age, live in the UK, and have less than £16,000 in savings. If you have a partner, they will also need to meet certain eligibility criteria. You can make a claim online through the gov.uk website.

The amount of Universal Credit you receive is based on your personal circumstances, such as your income, housing costs, and whether you have any dependents. There are different elements of Universal Credit, such as a standard allowance, a housing element, a childcare element, and a limited capability for work element.

One of the key features of Universal Credit is that it is paid as a single monthly payment, which includes any housing costs you are entitled to. This means that you will need to budget your money carefully to cover all your expenses for the month.

Universal Credit has been the subject of some controversy since its introduction, with some critics arguing that it has caused financial hardship for some claimants and has led to increased use of food banks. However, supporters of the system argue that it simplifies the benefits system and encourages people to move into work.

How does it work?

When you make a claim for Universal Credit, you will need to provide information about your income, savings, rent or mortgage payments, and any other relevant financial details. You will also need to provide evidence to support your claim, such as proof of identity, bank statements, and proof of rent or mortgage payments.

Once your claim has been approved, you will receive a monthly payment into your bank account. This payment will include any housing costs you are entitled to, which means that you will need to use the payment to cover your rent or mortgage payments.

If you are in work while claiming Universal Credit, your payment will be adjusted based on your earnings. For every £1 you earn above a certain threshold, your Universal Credit payment will be reduced by 55p. This is known as the taper rate.

If you have children or other dependents, you may be entitled to additional elements of Universal Credit, such as the childcare element or the limited capability for work element. The amount of support you receive for these elements will depend on your individual circumstances.

Overall, Universal Credit is designed to be a simpler and more streamlined system than the previous benefits it has replaced. However, it can still be a complex system to navigate, and some claimants may require support or advice to make the most of the system.

Already claiming legacy benefits?

If you are already claiming legacy benefits, such as Income Support, Jobseeker’s Allowance, Housing Benefit, Working Tax Credit, or Child Tax Credit, you may be able to switch to Universal Credit if you meet certain eligibility criteria.

You may be required to switch to Universal Credit if you have a change in circumstances that would affect your existing legacy benefits, such as starting work or moving home. In some cases, you may also be able to switch voluntarily to Universal Credit if you would receive a higher level of support than under your existing benefits.

To switch to Universal Credit, you will need to make a claim online through the gov.uk website. You will need to provide information about your income, savings, rent or mortgage payments, and any other relevant financial details. You will also need to provide evidence to support your claim.

Once your claim has been approved, your legacy benefits will stop and you will start to receive Universal Credit payments instead. It’s important to note that the switch to Universal Credit may not always be straightforward and may result in changes to the amount of support you receive, so it’s important to seek advice and support if you are considering making the switch. You can get help and advice from a number of sources, including Citizens Advice or a welfare rights organisation.

Will you need to look for work while claiming?

In general, if you are claiming Universal Credit, you will be expected to look for work or take steps to increase your income. This is because Universal Credit is designed to support people who are out of work or on a low income to move into work or increase their earnings.

However, there are some exceptions to this requirement. For example, if you have limited capability for work due to a health condition or disability, you may not be required to look for work. Similarly, if you are a carer, a single parent with a child under a certain age, or in full-time education, you may be exempt from the work-related requirements.

If you are required to look for work while claiming Universal Credit, you will need to agree to a work-related claimant commitment. This is a document that outlines the steps you will need to take to look for work or increase your income. It may include things like attending job interviews, completing training courses, or making a certain number of job applications each week.

If you do not comply with the work-related requirements, you may be subject to sanctions, which means that your Universal Credit payment may be reduced or stopped. It’s important to keep in touch with your work coach and notify them of any changes in your circumstances that may affect your ability to meet your claimant commitment.

Overall, the work-related requirements of Universal Credit are designed to support claimants in finding work or increasing their income. However, the system can be complex, and it’s important to seek advice and support if you are unsure of your rights and responsibilities as a Universal Credit claimant.

How long does it take to get Universal Credit?

The length of time it takes to get Universal Credit can vary depending on a number of factors, such as your individual circumstances, whether you have provided all the required information and evidence, and how busy the Department for Work and Pensions (DWP) is at the time.

In general, it can take up to five weeks to receive your first payment of Universal Credit after you have made your claim. This is because there is a one-month assessment period, followed by up to seven days for processing and payment.

However, in some cases, you may be able to receive an advance payment to help tide you over until your first payment arrives. This is essentially a loan that is deducted from your future Universal Credit payments, and you will need to pay it back over a period of up to 12 months.

It’s important to note that the DWP may need to carry out additional checks or request further information before making a decision on your claim. This can also affect the time it takes to receive your first payment.

If you are in financial hardship and are experiencing difficulty with the wait for your first payment, you can contact the DWP or your work coach to discuss your situation and see if any additional support or help is available. You may also be eligible for other forms of support, such as a council tax reduction or a discretionary housing payment, so it’s worth exploring all options available to you.

Advance payment on Universal Credit

An advance payment is a loan you can get from the Department for Work and Pensions (DWP) if you’re waiting for your first payment of Universal Credit, or if you’ve had a change in your circumstances that means your payment will be delayed.

The amount of the advance payment will depend on your individual circumstances, but it can be up to the total amount of your estimated Universal Credit payment for one month. You will need to repay the advance payment in monthly instalments, which will be automatically deducted from your future Universal Credit payments.

It’s important to note that an advance payment is a loan, and not an extra payment, so you will need to budget carefully to make sure you can afford the repayments. You will also need to repay the advance payment even if you later decide not to continue with your Universal Credit claim.

To apply for an advance payment, you will need to speak to your work coach or contact the Universal Credit helpline. They will be able to assess your eligibility for an advance payment and guide you through the application process.

It’s worth noting that while an advance payment can help provide short-term financial support, it’s not a long-term solution, and you may need to explore other options for financial support, such as budgeting loans or grants, if you are experiencing ongoing financial difficulty.

What happens to your Universal Credit when you start work or work more hours?

If you start work or increase your working hours while claiming Universal Credit, your Universal Credit payment will be adjusted to reflect your new income. This is because Universal Credit is designed to provide financial support to those on low incomes or out of work, and is meant to reduce gradually as your income increases.

The amount of Universal Credit you receive will be adjusted based on how much you earn in each assessment period, which is usually a month. Your earnings for each assessment period will be assessed, and your Universal Credit payment will be reduced by 55p for every £1 you earn above your work allowance. Your work allowance is the amount of money you can earn before your Universal Credit payment is reduced.

If your earnings in a particular month are low or you don’t earn anything, your Universal Credit payment will be topped up to ensure you receive the full amount you are entitled to. However, if your earnings are higher than expected, you may receive less or no Universal Credit payment for that month.

It’s important to keep your work coach informed of any changes to your working hours or income, as this can affect your Universal Credit payment. You may also need to provide evidence of your earnings, such as payslips or self-employed accounts, to ensure that your Universal Credit payment is accurate.

Overall, Universal Credit is designed to provide support to those on low incomes or out of work, and is meant to adjust gradually as your income increases. By starting work or increasing your working hours, you may be able to reduce your reliance on Universal Credit and increase your overall income.