What Universal Credit is

What is Universal Credit Are You Eligible for Universal Credit How much is Universal Credit Deductions from your universal credit How You Will Be Paid Make a Claim for Universal Credit Claimant Commitment Change in Circumstances Universal Credit is a monthly payment designed to help with living costs for people who are on a low income, out of work, or unable to work. This guide will walk you through the claim process, explain additional benefits you may be entitled to while claiming Universal Credit, and help you understand the difference between legacy benefits and Universal Credit. Who Can Claim Universal Credit? To claim Universal Credit, you must meet the following criteria: Live in the United Kingdom Be currently out of work or have a low income that cannot cover your living costs Be aged 18 or above (care leavers under the age of 18 may still be eligible) Have savings of £16,000 or less if you are living with a partner Be working full-time or training full-time (dependent on your circumstances) Be below State Pension Age or have a partner who is Live with a partner who is eligible for Universal Credit Support a child either as a single parent or a couple Pursue further education without any support from your family Have limited capability to work due to a disability Universal Credit Guide The Universal Credit & You guide, Your responsibilities & commitment. Download Key Features of Universal Credit Single payment: Universal Credit merges six benefits and tax credits (Child Tax Credit, Working Tax Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance , and Housing Benefit) into one monthly payment, making it easier for claimants to manage their finances. Tailored to individual circumstances: The amount of Universal Credit a person receives depends on their specific circumstances, such as housing costs, childcare expenses, health conditions, and disabilities. This ensures that the support provided is tailored to the individual’s needs. Adjusts to changes in income: Universal Credit is designed to adjust as a person’s income changes, gradually reducing the payment as their earnings increase. This provides a financial incentive for claimants to work more hours or find higher-paying jobs, as they will not lose all their benefits at once. Work allowances: Claimants with disabilities or children may be eligible for a work allowance, which is the amount they can earn before their Universal Credit payment is reduced. This allows them to keep more of their earnings while still receiving financial support. Conditionality and sanctions: Universal Credit claimants may be required to meet certain conditions, such as looking for work, attending training courses, or meeting with a work coach. Failing to meet these conditions can result in sanctions , which reduce or suspend the Universal Credit payment. The Impact of Universal Credit Universal Credit aims to simplify the benefits system, become more efficient, and better aligned with the labor market. Some of the intended impacts include: Reducing poverty and worklessness: By providing a financial incentive to work and offering tailored support to help claimants find employment, Universal Credit aims to reduce poverty and worklessness in the UK. Improving work incentives: Universal Credit is designed to ensure that work always pays more than benefits, encouraging claimants to increase their earnings and become more self-sufficient. Simplifying the benefits system: By combining multiple benefits and tax credits into one payment, Universal Credit simplifies the system, making it easier for claimants to understand and manage their finances. Upcoming Changes to Benefits Child Tax Credit: Financial support for parents or guardians responsible for a child or young person. Working Tax Credit: Financial support for low-income working individuals or couples. Income Support: Financial assistance for people with low income and limited savings. Income-based Jobseeker’s Allowance (JSA): Support for individuals actively seeking employment. Income-related Employment and Support Allowance (ESA): Support for those unable to work due to illness or disability. Housing Benefit: Assistance with rent payments for those on low incomes or claiming benefits. You can no longer make a new claim for legacy benefits; instead, you will need to claim Universal Credit. Working or Training Full-Time and Eligibility In certain circumstances, you might still be eligible for Universal Credit even if you are working or training full-time. For example, if you are a low-income worker, a single parent working part-time, or have a disability that limits your ability to work, you may qualify for additional financial support through Universal Credit. Payment Schedule Universal Credit is typically paid monthly. However, in some cases (such as in Scotland or Northern Ireland ), payments may be made twice a month. Transitioning to Universal Credit If your benefits stop or change for any reason, you will be transferred to Universal Credit. This may result in you making a new claim , and you will also be required to attend the Job Centre for an interview. You do not need to take any action unless you experience a change in your circumstances or receive a ‘ Migration Notice ‘ letter instructing you to claim Universal Credit. Impact on Other Benefits If you or your partner claims Universal Credit, you will stop receiving the other benefits and tax credits mentioned. However, this will not affect any other benefits you may be receiving. Content Updated 27/04/2023 Read Next – Are You Eligible for Universal Credit

Are You Eligible for Universal Credit How much is Universal Credit Deductions from your universal credit How You Will Be Paid Make a Claim for Universal Credit Claimant Commitment Change in Circumstances To be eligible for universal credit, you must live in the UK and not be subject to immigration conditions also: Be 18 years old or over (Unless special circumstances apply) Be under the state pension age (Currently 66) Have less than £16,000 in savings or investments Foster or adopt a child Have children Care for someone for at least 35 hours per week. Study full or part time. Living as a couple and one or both are under state pension age Be in or out of work and have a low income If you live with a partner You must make a joint claim for your household, even if your partner is ineligible. The amount you receive will depend on your partner’s income, savings, and your own. When you reach the state pension age Single claims: When you reach the state pension age, your universal credit claim will stop. You will need to start your state pension claim. If you had an active claim for disability as part of your universal credit claim, you will now need to claim attendance allowance. Living with a partner: If one of you has reached the State Pension age, you can still claim Universal Credit as a couple, and your claim will stop when both of you reach the State Pension age. New claims for universal credit will stop your pension credit. If you or your partner claim Universal Credit, you will stop receiving Pension Credit, and it is usually financially more beneficial to remain on Pension Credit. If you’re in full-time education Students can claim universal credit if they’re in full or part-time education, and any of the following apply. You live with a partner, and they are eligible for universal credit. You’re responsible for one or more children. You do not have parental support (21 or younger) You won’t receive student loans or bursaries You have a health condition or disability If you’re studying part-time You live with a partner, and they are eligible for universal credit. You’re responsible for one or more children. You do not have parental support (21 or younger) You won’t receive student loans or bursaries You have a health condition or disability Students With a Health Condition or Disability You can still claim universal credit if you have had a work capability assessment and been approved for the following: limited capability for work (LCW) limited capability for work and work-related activity (LCWRA) Your assessment must have been before starting your course.You must also have one of the following: Attendance Allowance Armed Forces Independent Payment Disability Living Allowance (DLA) Personal Independence Payment (PIP) Child Disability Payment Adult Disability Payment You may need to provide evidence to the Department for Work and Pensions (DWP) of your disability or health condition. You will need to provide evidence of your course. For part-time courses, you will need to attend study for at least 12 hours per week. Some further education is not covered by universal credit. Courses you can do while claiming universal credit: Advanced Diploma AS Level National qualification framework level 3 Scottish qualification framework level 6 A Level – General certificate of education National diploma, certificate, or award Level 3 NVQ Full-time courses of advanced education include those leading to: A postgraduate degree or comparable qualification A first-degree or similar qualification A diploma in higher education A higher national diploma Any other course of study of a standard above: Advanced GNVQ or equivalent A Scottish higher or advanced higher national qualification If you are 16 or 17 years old You can claim Universal Credit if you meet specific criteria. This includes having a health condition or disability and having medical evidence, such as a fit note, to support your claim. Responsible for a child Live with a partner who is eligible for Universal Credit If you are caring for someone who receives a health or disability-related benefit Are pregnant and expecting your baby in the next 12 weeks Had a baby in the last 15 weeks You have no parental support Support for care leavers Suppose you’re a care leaver or still under your local authority. In that case, you may be entitled to financial support from your local authority, and you can get financial assistance with education, training, and employment. Content Updated 27/04/2023 Read Next – How much is Universal Credit

Deductions From Universal Credit

Deductions from your universal credit How You Will Be Paid Make a Claim for Universal Credit Claimant Commitment Change in Circumstances We understand that navigating the complex world of government benefits can be overwhelming. That’s why we want to provide you with comprehensive information on how much can be taken from your Universal Credit payments. As you may already know, your Universal Credit payment is calculated at the end of each Assessment Period. Your online account will show a breakdown of each deduction taken from your Universal Credit payments. So, how much can be taken from your payments? The maximum amount that can be taken each month is 25% of your Universal Credit Standard Allowance. This is the basic amount of Universal Credit you are entitled to, before any additional funds for things like childcare and housing costs are added. However, in some cases, last resort deductions may be taken, which could exceed the 25% limit. If you have a joint claim for Universal Credit with your partner, you will both receive a joint payment for your household, paid twice a month. Any debts or deductions you or your partner have will be taken from your Universal Credit payments before you receive them. We understand that deductions can be difficult to manage, especially if they result in financial hardship. If you are struggling to make ends meet due to deductions from your Universal Credit payments, you can request a “financial hardship decision” to reduce your deductions. This decision will be considered if deductions are being taken from your payments for repaying Tax Credit overpayments, paying off benefit debt, or repaying a Social Fund loan. If approved, the new reduced deductions will take effect from the start of your next assessment period. It’s important to note that if your total deductions would be more than 25% of your Universal Credit Standard Allowance, deductions will be made in a specific order of priority. Fraud penalties and sanctions will be deducted first, followed by Universal Credit advance loans, budgeting advance loans, and other deductions such as housing costs, fines, and child maintenance. At Universalcredit.co.uk, we want to ensure that you have all the information you need to make informed decisions about your Universal Credit payments. If you need further assistance, please do not hesitate to contact us. We are here to help you every step of the way. Content Updated 27/04/2023 Read Next – How You Will Be Paid

How You Will Be Paid Make a Claim for Universal Credit Claimant Commitment Change in Circumstances Understanding how Universal Credit payments are made, when to expect your first payment, the assessment period, and options for those living in Scotland or Northern Ireland . We will also explain how to request changes to how you are paid. How Universal Credit Payments are Made Payments are made once a month, directly into your bank, building society, or credit union account. Your payment may include your rent or other housing costs, which you will typically need to pay to your landlord. Joint Claims Joint claims are paid together into one bank account. You can request separate payments for you and your partner. To view the payment breakdown, access your online account . First Payment Timeline Expect your first payment within 5-6 weeks after starting your claim. If waiting for your first payment causes financial hardship, apply for an advance payment . Understanding the Assessment Period The assessment period is the time between Universal Credit payments. Your initial assessment period begins on the day you submit your application. The amount of Universal Credit you receive is calculated during the assessment period. Example : If you make a new claim for Universal Credit on the 16th of March, your first assessment period will run until the 15th of April, with a new assessment period beginning on the 16th of April. You are usually paid seven days after the qualifying period, so your payment date would be the 23rd of every month. Payment Options in Scotland and Northern Ireland In Scotland, recipients can choose to receive payments once or twice per month. New claimants can select their preferred payment frequency after the first payment. Existing recipients can ask their work coach to be paid twice per month. Note : If you choose to be paid twice per month, your initial payment will be for one full month, followed by the first half of the subsequent month’s payment one month later. The second half of the payment for the following month will be made 15 days after that. There will be approximately a month and a half between your first payment and the full payment for your second month. Following this, you will be paid twice per month. Requesting Changes to How You Are Paid To request an Alternative Payment Arrangement (APA), which can include: Arranging a separate payment from a joint claim Changing payment frequency to every 2 weeks Paying rent directly to your landlord Contact Universal Credit or leave a note in your journal to apply for an APA. Content Updated 27/04/2023 Read Next – Make a Claim for Universal Credit

What is a Claimant Commitment

Claimant Commitment Change in Circumstances When you claim universal credit, you will need to sign a claimant commitment it’s important to understand importance of the claimant commitment in relation to Universal Credit, and how it affects recipients. What is a Claimant Commitment? In order to receive Universal Credit payments, you will need to accept a legal agreement known as a “claimant commitment.” This agreement is a written record of your responsibilities regarding job search and income enhancement if you are already employed. If you reside with a partner, both of you will be required to sign separate claimant commitments. Your claimant commitment is a legally binding agreement that outlines your responsibilities and requirements for receiving Universal Credit payments. The commitment is customized to your personal circumstances and takes into account factors such as your health, skills, experience, and current employment status. Understanding and Complying with Your Claimant Commitment It’s crucial to fully understand and comply with all obligations outlined in your claimant commitment, as any failure to do so could result in a reduction or suspension of your payments. This is known as a “sanction” and can have significant financial consequences. Sanctions Sanctions can be imposed for a variety of reasons, such as failing to attend a job interview or refusing to take part in training or other activities designed to enhance your employment prospects. Exemptions However, if you have a medical prognosis of 12 months or less to live from a medical professional, you will not be required to enter into a claimant commitment, and sanctions will not be applicable to your case. This exemption recognizes the unique and challenging circumstances that seriously ill individuals face and provides a measure of financial support and security during their final days. Looking for Work If you are required to look for work while receiving Universal Credit, the steps you need to take will vary based on your situation. For example , if you have a health condition or disability, the job search requirements may be modified to accommodate your limitations. Similarly, if you are a caregiver or have a child under 13, your job search requirements may differ from those of other individuals. In some cases, the goal may be to find a job, while in others, it may be to obtain better-paying work or to increase your working hours. If you are currently unable to work but anticipate doing so in the future, you may need to prepare for work, which may involve creating a resume, attending a training course, or engaging in other activities designed to enhance your skills and employability. Examples of Universal Credit Recipients A single parent working part-time, looking to increase their working hours or find a higher-paying job. An individual with a disability that affects their ability to work, who requires support in finding suitable employment. An unemployed person actively seeking work and participating in job training programs to improve their skills. By understanding your claimant commitment and the responsibilities that come with it, you can ensure that you are meeting the requirements for receiving Universal Credit and avoiding any potential sanctions. Content Updated 27/04/2023 Read Next – Change in Circumstances

Report a change of circumstances

Change in Circumstances Keeping your Universal Credit claim up to date with any changes in your circumstances is crucial to ensure you receive the correct amount of financial assistance. This article will guide you on how to report these changes and what types of changes need to be reported. Change of Address or Living Situation Change of address Rent or service charge changes If your address or living situation changes, you must update your Universal Credit account with the new information. This includes changes in rent or service charges. Employment Changes Finishing a job Finding a job Change of job or work hours If you start or finish a job or your work hours change, you will need to update your account with the details. You may also need to sign a new claimant commitment, depending on your circumstances. Family and Household Changes Having a child If you have a child or there are changes in your family composition, report these changes on your account to ensure your Universal Credit payment is adjusted accordingly. Health Condition or Disability Health condition changes Disability changes You may need to update your Universal Credit account with any changes to your health condition or disability. If your health condition or disability improves or deteriorates, report these changes on your account. You may be asked to provide further evidence or take another work capability assessment. End of Life If you have been advised that you may have 12 months or less to live, you must report this change through your Universal Credit account. After reporting the change, you will receive further instructions on what to do next. Alternatively, you may ask someone else to report the change on your behalf. In such cases, a doctor or medical professional should complete form DS1500 if you have been told that you may have six months or less to live. If you have been informed that you may have 12 months or less to live, form SR1 should be completed instead. Your medical professional will have access to the necessary forms, and either they or your representative may submit the completed forms to the appropriate address: Freepost Department for Work and Pensions Universal Credit Full Service Self-employed Earnings When receiving Universal Credit, it’s essential to report your income and expenses accurately at the end of each monthly assessment period. This includes reporting any money earned from self-employment, pension contributions, and payments made into and out of your business. To report your income and expenses, you must complete the ‘Report your income and expenses’ section in your online Universal Credit account. This is also applicable to company directors, including those who pay themselves via PAYE. Your Universal Credit payment will be calculated based on your reported earnings at the end of each assessment period. If you’re considered ‘gainfully self-employed,’ your Universal Credit payment may be calculated using a minimum income floor, which assumes the minimum wage earned by employed individuals in similar circumstances. Remember to report any changes in your circumstances, such as closing your business or starting a new one, to ensure that your Universal Credit payment is accurate and up-to-date. By understanding and reporting the changes in your circumstances promptly, you can avoid overpayment or underpayment of your Universal Credit, ensuring you receive the appropriate financial support for your situation. Content Updated 27/04/2023 Read Next – What is Universal Credit

Universal Credit – Everything You Need To Know

What is Universal Credit

Are You Eligible for Universal Credit

How much is Universal Credit

Deductions from your universal credit

How You Will Be Paid

Make a Claim for Universal Credit

Claimant Commitment

Change in Circumstances

Universal Credit is a monthly payment designed to help with living costs for people who are on a low income, out of work, or unable to work.

This guide will walk you through the claim process, explain additional benefits you may be entitled to while claiming Universal Credit, and help you understand the difference between legacy benefits and Universal Credit.

Who Can Claim Universal Credit?

To claim Universal Credit, you must meet the following criteria:

Live in the United Kingdom
Be currently out of work or have a low income that cannot cover your living costs
Be aged 18 or above (care leavers under the age of 18 may still be eligible)
Have savings of £16,000 or less if you are living with a partner
Be working full-time or training full-time (dependent on your circumstances)
Be below State Pension Age or have a partner who is
Live with a partner who is eligible for Universal Credit
Support a child either as a single parent or a couple
Pursue further education without any support from your family
Have limited capability to work due to a disability

Universal Credit Guide

The Universal Credit & You guide, Your responsibilities & commitment.

Download

Key Features of Universal Credit

Single payment: Universal Credit merges six benefits and tax credits (Child Tax Credit, Working Tax Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, and Housing Benefit) into one monthly payment, making it easier for claimants to manage their finances.

Tailored to individual circumstances: The amount of Universal Credit a person receives depends on their specific circumstances, such as housing costs, childcare expenses, health conditions, and disabilities. This ensures that the support provided is tailored to the individual’s needs.

Adjusts to changes in income: Universal Credit is designed to adjust as a person’s income changes, gradually reducing the payment as their earnings increase. This provides a financial incentive for claimants to work more hours or find higher-paying jobs, as they will not lose all their benefits at once.

Work allowances: Claimants with disabilities or children may be eligible for a work allowance, which is the amount they can earn before their Universal Credit payment is reduced. This allows them to keep more of their earnings while still receiving financial support.

Conditionality and sanctions: Universal Credit claimants may be required to meet certain conditions, such as looking for work, attending training courses, or meeting with a work coach. Failing to meet these conditions can result in sanctions, which reduce or suspend the Universal Credit payment.

The Impact of Universal Credit

Universal Credit aims to simplify the benefits system, become more efficient, and better aligned with the labor market. Some of the intended impacts include:

Reducing poverty and worklessness: By providing a financial incentive to work and offering tailored support to help claimants find employment, Universal Credit aims to reduce poverty and worklessness in the UK.

Improving work incentives: Universal Credit is designed to ensure that work always pays more than benefits, encouraging claimants to increase their earnings and become more self-sufficient.

Simplifying the benefits system: By combining multiple benefits and tax credits into one payment, Universal Credit simplifies the system, making it easier for claimants to understand and manage their finances.

Upcoming Changes to Benefits

Child Tax Credit: Financial support for parents or guardians responsible for a child or young person.
Working Tax Credit: Financial support for low-income working individuals or couples.
Income Support: Financial assistance for people with low income and limited savings.
Income-based Jobseeker’s Allowance (JSA): Support for individuals actively seeking employment.
Income-related Employment and Support Allowance (ESA): Support for those unable to work due to illness or disability.
Housing Benefit: Assistance with rent payments for those on low incomes or claiming benefits.

You can no longer make a new claim for legacy benefits; instead, you will need to claim Universal Credit.

Working or Training Full-Time and Eligibility

In certain circumstances, you might still be eligible for Universal Credit even if you are working or training full-time.

For example, if you are a low-income worker, a single parent working part-time, or have a disability that limits your ability to work, you may qualify for additional financial support through Universal Credit.

Payment Schedule

Universal Credit is typically paid monthly. However, in some cases (such as in Scotland or Northern Ireland), payments may be made twice a month.

Transitioning to Universal Credit

If your benefits stop or change for any reason, you will be transferred to Universal Credit. This may result in you making a new claim, and you will also be required to attend the Job Centre for an interview.

You do not need to take any action unless you experience a change in your circumstances or receive a ‘Migration Notice‘ letter instructing you to claim Universal Credit.

Impact on Other Benefits

If you or your partner claims Universal Credit, you will stop receiving the other benefits and tax credits mentioned. However, this will not affect any other benefits you may be receiving.

Content Updated 27/04/2023

Read Next – Are You Eligible for Universal Credit

Universal Credit – Everything You Need to Know

Who Can Claim Universal Credit?

Universal Credit Guide

Key Features of Universal Credit

The Impact of Universal Credit

Upcoming Changes to Benefits

Working or Training Full-Time and Eligibility

Payment Schedule

Transitioning to Universal Credit

Impact on Other Benefits

Important Links

Departments & Policies

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