Money Wellness

Universal credit help

Universal credit is replacing six other benefits with a single monthly payment. You may get it if you’re out of work or on a low income.

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What is universal credit?

Universal credit replaces:

  • income-based jobseeker’s allowance
  • income-related employment and support allowance
  • income support
  • housing benefit
  • child tax credit
  • working tax credit
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Universal credit eligibility

You might be able to get universal credit if:

  • you live in the UK
  • you’re 18 or over (there are some exceptions if you’re 16 or 17)
  • you or your partner are under state pension age
  • you’re out of work or on a low income
  • you and your partner have less than £16,000 in savings and investments
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Universal credit in England and Wales

If you live in England or Wales and you get money towards your rent, this will be included in your monthly universal credit payment.

You must pay your landlord out of this money. 

Universal credit in Scotland and Northern Ireland

If you live in Scotland or Northern Ireland, you can choose to have your rent paid directly to your landlord.

Or you can choose to receive the full universal credit amount and pay your rent yourself.

How much is Universal Credit?

Universal credit includes a basic payment and then additional payments to cover things like housing, bringing up children, being a carer, and sickness and disability.

How much you get will depend on the income you get from:

  • working
  • other benefits
  • a pension
  • savings and capital above £6,000

There are no limits on how many hours you can work. The amount you get will gradually reduce as you earn more.

Use our free benefits calculator to find out how much you might be able to get.

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How to claim universal credit

You can apply for universal credit online. First, you’ll need to set up an account.

Once you’ve done this, you can start your application.

You’ll need:

  • an email address
  • access to a phone
  • your bank, building society or credit union account details
  • If you don’t have these, call the universal credit helpline or go to a jobcentre.

To prove your identity, you’ll also need documents such as your:

  • passport
  • driving licence
  • debit card
  • payslip or P60

To make a claim, you’ll need information about:

  • your housing costs
  • your earnings
  • your savings and any investments
  • any disability or sickness that affects your work
  • how much you spend on childcare if you’re claiming for childcare costs

You might need to speak to the universal credit team either at a jobcentre or over the phone if:

  • you can’t prove your identity online
  • they need more information

Getting universal credit if you’re sick or disabled

When you apply for universal credit, you’ll be asked if you have a health condition that affects your ability to work.

If you do, you’ll need to provide a fit/sick note and fill in a capability for work questionnaire.

You may be told you need a work capability assessment to decide how much your illness or disability affects your ability to work.

If you need an assessment, you’ll get a letter explaining what to do. The assessment may take place face-to-face, by video call or over the phone.

Until you get the result of your work capability assessment, you’ll:

  • get the standard allowance for a new claim; or
  • continue getting the same amount, if you’re reporting a change of circumstances
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FAQs

It usually takes about five weeks to get your first payment.

If you need money while you wait, you may be able to get an advance.

Some people have already been moved from legacy benefits to universal credit. 

If you haven’t been moved yet, you will be eventually. It may happen: 

  • if you report a change in circumstances
  • after the Department for Work and Pensions (DWP) sends you a letter asking you to switch 

You can decide to switch to universal credit before you’re asked to by the DWP. But check the amount you receive won’t go down before you make that decision. Once you move to universal credit, you can’t switch back.

For every £1 you or your partner earns your universal credit payment goes down by 55p.

Try our free benefits calculator to see how working more hours or starting a new job is likely to affect what you get.

You can earn a certain amount before your universal credit is reduced if you or your parent are:

  • responsible for a child or young person
  • have a disability or health condition that affects your ability to work

This is called a work allowance.

Being a homeowner won’t stop you from getting universal credit.

If you have an outstanding mortgage, your universal credit payment may include support for mortgage interest (SMI). SMI is paid as a loan.

You’ll usually need to repay it with interest when you sell or transfer ownership of your home.

Universal credit is paid once a month, usually into a bank, building society or credit union account.

If you can’t open a bank, building society or credit union account, call the universal credit helpline to arrange another way to get paid. 

Before you get universal credit, you have to sign up to a claimant commitment. Your claimant commitment sets out what you’ll do to prepare and look for work, or to increase your earnings if you’re already working.

Your claimant commitment is based on your personal situation and is reviewed on an ongoing basis.

If you don’t meet your claimant commitment responsibilities, your universal credit payments may be temporarily reduced. This is called a sanction.