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Universal Credit

Universal Credit (UC) is a means-tested benefit that is being gradually introduced across the UK.


This information applies to people living in England, Wales, Scotland and Northern Ireland.


UC is replacing Income Support, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), Housing Benefit, Child Tax Credit and Working Tax Credit. You receive one payment to cover all these different benefits if you’re entitled. These are referred to in this information as ‘legacy benefits’.

You apply for Universal Credit online, it is paid monthly, and the total amount you receive may be different to what you receive now.


When will Universal Credit (UC) affect me?

When UC will affect you will depend on your circumstances.

If you are not already getting a legacy benefit and are thinking of claiming benefits

Universal Credit is available across all areas of the UK and usually, you can no longer make a new claim for legacy benefits and will have to claim UC instead.   

Example: Ms Bennett resigns from her job to look after her daughter and claims Carer’s Allowance. Ms Bennett  is not on any other legacy benefit so is unable to claim Income Support as a carer and must claim UC instead.

If you are already getting a legacy benefit

If you are already getting a legacy benefit, and there are no changes in your circumstances, UC won’t affect you until you are migrated over to UC (called ‘managed migration’). At the moment, managed migration isn’t expected to happen until at least November 2020.

If you are already getting legacy benefits, and there is a change in your circumstances which would have meant you made a new claim for a legacy benefit, you may now have to claim UC. If you claim UC it will mean that all the legacy benefits you are getting will stop. It is important to seek advice if you are already getting legacy benefits and there will be a change in your circumstances, to ensure you’re aware of what will happen with your legacy benefits, how long you may have to wait for your first payment of UC and what you can do if you need money in the meantime. 

This information will be useful if you are not able to claim legacy benefits and have to claim UC, or if you are just wanting to find out more about UC for the future. If your situation is more complicated than this we would recommend you seek advice - see our Get in contact with us page for further information.

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Who can claim Universal Credit (UC)?

If you are making a new claim for benefits, and would previously have claimed a legacy benefit, you will have to claim UC instead if you  do not have 3 or more children.

As well as the above rules, to be eligible for UC you (and any partner if you are making a joint claim) also have to meet all of the following conditions:

  • you must normally be 18 or over - however there are some groups of people who can claim UC if they are aged 16 or 17, and importantly, one such group of people is those who have ‘regular and substantial caring responsibilities for a severely disabled person’ – see below for definition
  • you and your partner must be under state pension credit age - see below for definition
  • you must normally not be in education, although there are some exceptions to this
  • you must not have capital (including savings) over £16,000
  • you must not have assessable income which is more than your maximum UC amount - see below section called ‘How much Universal Credit (UC) will I get?’ for more information
  • you must accept a claimant commitment - see below section called ‘What is the claimant commitment?’ for more information
  • you must meet the residence and presence conditions and you must not be subject to immigration control

Note: You have ‘regular and substantial caring responsibilities’ if you satisfy the eligibility conditions for Carer’s Allowance (even if you don’t make a claim) or would do so but for the fact that your earnings are too high.

Note: A person is ‘severely disabled' if they receive the middle or the higher rate of the care component of Disability Living Allowance (DLA), the daily living component of Personal Independence Payment (PIP), Attendance Allowance, Armed Forces Independence Payment or Constant Attendance Allowance.

Note: 

Your State Pension age is the earliest age you can start receiving your State Pension. It may be different to the age you can get a workplace or personal pension. Your State Pension age is worked out based on your gender and date of birth and you can check this here

From 15th May 2019, if you are over state pension age and your partner is under, you will have to make a claim for Universal Credit. You won't be able to make a claim for Pension Credit until you are both over State Pension age.

 

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How much Universal Credit (UC) will I get?

UC is a monthly benefit, and each month is called an assessment period. At the end of each assessment period the Department for Work and Pensions (DWP) will work out how much UC you will get based on your circumstances during that particular assessment period. It is therefore important to tell the UC office about any changes in your circumstances as soon as they occur - see below section for 'What happens if my circumstances change'

To work out how much UC you will get the DWP will:

  • work out the maximum amount of UC for your circumstances
  • work out the amount of your household assessable income
  • deduct your household assessable income from your maximum UC amount

Your monthly UC payment is the total of your maximum UC amount minus your household assessable income.

The maximum amount of UC for your circumstances

The maximum amount of UC for your circumstances is made up of a standard allowance which depends on your age and whether you are single or in a couple, and various ‘elements’.

The standard allowance amounts are:

  • £251.77 a month if you are single and aged under 25
  • £317.82 a month if you are single and aged 25+
  • £395.20 a month if you are in a couple and both aged under 25
  • £498.89 a month if you are in a couple and one or both of you are aged 25+

The elements include:

  • child elements (plus additional amounts for disabled or severely disabled children)
  • a carer element (see below for further information)
  • a limited capability for work element (which was abolished for most new claims made after 3rd April 2017) and a limited capability for work-related activity element
  • a housing costs element
  • a childcare costs element

You can get the carer element of UC if you have ‘regular and substantial caring responsibilities’ for a ‘severely disabled person’ (see above for definition). The carer element is £160.20 a month.

One important thing to note is that if the person you are looking after receives a severe disability premium (or addition) within their means-tested legacy benefits, they will lose this if your UC includes a carer element (regardless of whether or not you are also claiming Carer’s Allowance).

The amount of your household assessable income

Earnings are taken into account as income however certain claimants can deduct a work allowance. Other income taken into account includes some benefits (including Carer’s Allowance); pensions, income from capital etc.

Some income is disregarded including Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance, Child Benefit and any Child Maintenance you receive.

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What is the claimant commitment?

Universal Credit (UC) involves a ‘claimant commitment’ which is an agreement that you will meet certain work related requirements. If you claim UC as a couple you will each have your own claimant commitment. 

There are four types of work related requirements which may be included: work focused interviews, work preparation, work search and work availability.

Which work related requirements will apply to your claimant commitment will depend on which group you fit into:

  • the ‘no work related requirements group’ means you will not have to undertake any work related requirements
  • the ‘work focused interview only group’ means you will have to attend work focused interviews to prepare for work in the future - but you will not need to prepare for work, look for work or be available for work
  • the ‘work focused interview and work preparation group’ means you will have to attend work focused interviews and you will have to prepare for work, which could include writing a CV, work experience, training etc. - but you will not have to look for work or be available for work
  • the ‘all work related requirements group’ means you will likely have to attend work focused interviews and prepare for work - and you will definitely have to look for work by submitting job applications and attending interviews and be available for work

As a carer you will fit into the ‘no work related requirements group’ if:

  • you have ‘regular and substantial caring responsibilities for a severely disabled person’ – see above for definition or
  • you have caring responsibilities for one or more ‘severely disabled people’ (see above for definition) for at least 35 hours a week, but do not satisfy the qualifying conditions for Carer’s Allowance – however you will need to satisfy your work coach that that it would be unreasonable for you to meet a work search and work availability requirement

Whilst this is good news for those carers that meet the above conditions, carers who fall outside of these conditions (such as those caring for less than 35 hours a week and those caring for someone who is not considered to be ‘severely disabled’) will have some work related requirements.

Such carers are likely to have both a work focused interview requirement and a work preparation requirement. They might also have a work search requirement and a work availability requirement; however for both of these your work coach can decide that there are temporary circumstances (such as caring) which would mean these would be unreasonable. You should therefore fully discuss your caring role with your work coach, and cover things such as:

  • if the person you are looking after is not considered to be ‘severely disabled’ explain why – for example have they not made a claim for DLA, PIP or Attendance Allowance (and if not is there a reason why) or have they made a claim but are waiting on the outcome
  • why your caring role might impact your ability to fulfil work related requirements – for example you could describe your typical day and why you need to be available for the person you are looking after (i.e. if you need to attend school to sit with your child as and when required, if the person cannot be left alone, or if the person needs medication throughout the day and you need to help them with it etc.)
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How do I claim Universal Credit (UC)?

Claims for UC must be made online.

If you need help claiming online you can call the UC helpline on 0800 328 5644 – the helpline adviser may be able to complete an online form on your behalf or may suggest you ask for help from a local advice organisation.

The date of your claim is usually the date your online claim is received by the DWP.

Backdating a UC claim

UC can only be backdated for one month, and only if one or more circumstances applied that meant you (and your partner if you are making a joint claim) could not reasonably have claimed earlier.

Advance UC claims

In theory, if you claim UC when you are not yet entitled, but the DWP thinks that you will be entitled within one month of the day you claimed, it can make an advance award. If this applies, your claim is treated as made on the first day on which you are entitled to UC.

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How is Universal Credit (UC) paid?

UC is a monthly benefit (with each month being called an assessment period) and is paid monthly in arrears.

The date of your claim is generally the start date of your first assessment period. In practice, you should get your first UC payment within seven days of the end of your first assessment period, and this date of payment will continue going forward (on a monthly basis).

In reality this means that you will have to wait for one month and one week (from the date of your claim) before you get your first UC payment. If you do not have enough money to last until your first UC payment you can apply for a ‘short term advance’ of UC. You can see further information on short term advances here.

If you live in Scotland, you have the choice of being paid UC twice a month rather than monthly. You can also have your UC housing element paid directly to your landlord.  You should be offered this option but do not have to take it up. You can read more about this here

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What happens if my circumstances change?

If there is a change in your circumstances you must notify the DWP.

If you have an online account, you can report the change via your online journal. If you do not have an online account, you can report the change by calling the UC helpline on 0800 328 9344.

Generally, if a change of circumstances happens during an assessment period, it is treated as having happened on the first day of that assessment period.

However, a change of circumstances which means you get more UC is only treated as having happened on the first day of that assessment period if you report it before the end of that assessment period. If you miss this time limit the change applies from the start of the assessment period in which you reported it. This time limit can only be extended in exceptional circumstances. 

One exception to the above rules is  if you are entitled to more UC because you or your partner or a member of your household  are awarded a qualifying benefit, for example: Personal Independence Payment or Attendance Allowance, the change takes effect from the date entitlement to the qualifying benefit began. 

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What happens if I disagree with a Universal Credit (UC) decision?

If you disagree with a UC decision, you can ask the DWP to look at the decision again. This is called a mandatory reconsideration. You must do this before you can appeal. 

If you disagree with the mandatory reconsideration decision you must lodge an appeal with the Tribunal Service and attach a copy of the mandatory reconsideration notice with the appeal.

It is important to challenge a decision or get advice as quickly as possible because there are time limits that generally mean you must take action within one month.

You can see further information about challenging a benefit decision here.

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