What is Universal Credit (UC)?
UC, short for Universal Credit, is the name of a benefit that some people who do not work, do not work many hours, or who do not earn much money can get.
The money is to help to pay for your living costs.
Living costs include things like
rent
Rent is the money that you pay to live in your home when you have a
tenancy agreement
A Tenancy agreement is where the person renting a house, and the person who owns the house, agree on things like how much rent to pay, who will mend things like the cooker if they go wrong, and whether you are allowed pets.
. Your home belongs to a
landlord
A landlord is the owner of a property which they rent out to tenants. They can be a
council
A council is also called a
local authority
A local authority is also called a council. They are a group of people who make decisions about some of the things in the area where you live like schools,
social care
Social care means the services that give care and support to people who need it.
(support for people), parks and dustbin collection.
. They are a group of people who make decisions about some of the things in the area where you live. These include: schools, social care (support for people), parks and dustbin collection.
, a housing association, or an individual person.
, but you have a right to live there as long as you follow the rules that are in your tenancy agreement.
, food and energy bills.
Universal Credit replaces:
- Child
Tax
Tax is the money that pays for things like schools, hospitals and the police. There are different types of taxes like
income tax
Income tax is the money that is taken out of the money you earn every month. It helps to pay for things we all need like hospitals and schools.
,
VAT
VAT is also called Value Added Tax. VAT is the extra money you pay when you buy things. The money goes to
the government
The Government are the people who run the country. The Government decide how much tax people should pay and how things like the National Health Service (NHS) should work.
to pay for things like schools and hospitals.
and
council tax
Council Tax is the money that people pay to the council. It helps to pay for things like social care (support for people), parks and dustbin collection.
.
Credit - Housing Benefit (for most people who apply for Universal Credit)
- Income Support
- Income-based
Jobseeker's Allowance
Jobseeker's Allowance is sometimes called JSA and it is a benefit for people who are looking for a job.
(JSA) - Income-related
Employment
Employment means having a job.
and Support Allowance (ESA) - Working Tax Credit
If you are getting any of those benefits or tax credits, you do not need to do anything unless:
- your circumstances change, or
- you get a letter called a ‘
Migration Notice
A migration notice is a letter saying that one of your benefits will stop and you need to claim a different benefit.
’ telling you that you must claim Universal Credit.
Universal Credit has 2 parts:
1. Standard allowance
This is money for you (and your partner if you live with them).
2. Extra amounts
You might get extra money if you:
- have children
- pay for childcare
- have a disability or health condition
- care for someone who gets a benefit for their disability or health condition
You might also get extra money to help to pay for your housing costs, like rent or service charges.
Can I get Universal Credit?
To get Universal Credit you must:
- be 18 or over (you can sometimes get Universal Credit if you are 16 or 17)
- be under State
Pension
A pension is money you get when you are older to pay for the things you need. You can pay money into your pension when you are working so there is more money for when you are older.
age - live in the UK
- have £16,000 or less in money, savings and investments as a single person or as a couple.
Visit the government
website
A website is a page you can go to on the internet like Google or YouTube.
for the full eligibility criteria for claiming Universal Credit. This includes information for people who are:
- 16 or 17.
- 21 or under, studying any qualification up to A level or equivalent and do not have parental support.
- in full-time
education
Education is when you learn things. When you fill in a form to get a job, education means you write where you went to school, college or university.
.
If you have had a ‘Migration Notice’ and make a claim for Universal Credit before the deadline date, some of the normal rules do not apply. Visit the government’s guidance for people who have had a Migration Notice for further information.
What checks are needed to get Universal Credit?
The Department for Work and Pensions
The Department for Work and Pensions is sometimes called the DWP. It is part of the government and manages payments and benefits like Universal Credit,
Personal Independence Payment
Personal Independence Payment (PIP) is the name of a benefit that some people with a disability or health condition get. The money is to pay for extra help you might need to look after yourself and to get around. Some people who used to get
Disability Living Allowance
Disability Living Allowance (DLA) is the name of a benefit that some people with a disability get. The money is to pay for extra help you might need to look after yourself and to get around. Disability Living Allowance is being replaced by a benefit called Personal
Independence
Independence means doing things on your own. Making your own choices.
Payment (PIP).
(DLA) now get PIP instead.
,
Employment and Support Allowance
Employment and Support Allowance is sometimes called ESA. It is a benefit for people who find it harder to get a job because of a disability or a long term health condition.
, and Income Support.
(DWP) will need to check:
- how much money you earn
- how much you pay for rent and service charges
- how much you pay for childcare if you want help with childcare costs
- your savings and any investments, like shares or a property that you rent out
- if you have a disability or health condition which affects your work
If you live with your partner, the DWP will also need to check this information about your partner.
If you have had a Migration Notice telling you that you must claim Universal Credit, you should still get at least the same amount of money as you had on your old benefits. Sometimes you will be paid an extra payment called a ‘transitional protection’ payment to make this happen. Visit the government’s website for more information about transitional protection payments.
Easy Reads about Universal Credit
How to apply for Universal Credit
It's easy to apply for Universal Credit.
If you are receiving any of the benefits or tax credits that Universal Credit is replacing, you do not need to apply for Universal Credit unless:
- your circumstances change, or
- you need to make a new claim for benefits (for example you need to start to claim help with housing costs), or
- you get a letter called a ‘Migration Notice’ telling you that you must claim Universal Credit
If you live with your partner, you will both need to apply for Universal Credit.
To find out how to apply for Universal Credit, we have created a straightforward step-by-step digital guide to take you through the application process.
How Universal Credit is paid to you
Universal Credit is usually paid every month into your bank or building society account. The date that you get your first payment will be the date that you are paid every month (unless it is a weekend).
Your payment might include money for your rent or other housing costs which you will need to pay to your landlord.
If you find it difficult to manage your money with a monthly payment, you can ask for your Universal Credit to be paid more often, for example twice a month, or 4 times a month. You can also ask for your rent or housing costs to be paid direct to your landlord.
If you need money while you are waiting for your first Universal Credit payment, you can ask for an advance payment. If you get an advance payment, the money will be taken off your Universal Credit payments.
You might have money taken off your Universal Credit payment if you have a paid job, or you get money from some other benefits or a pension.
For more information about when you will get money taken off your payment visit the government’s information about Universal Credit payments
Frequently asked questions about Universal Credit
Can I claim Universal Credit?
To get Universal Credit you must:
- be 18 or over (you can sometimes get Universal Credit if you are 16 or 17)
- be under State Pension age
- live in the UK
- have £16,000 or less in money, savings and investments. The £16,000 threshold applies to single claimants as well as couples.
The full eligibility criteria for Universal Credit can be found on the UK government website.
Can I claim Universal Credit if I have a disability or health condition and am not able to work?
When you apply for Universal Credit, you can let the DWP know if you have a disability or health condition that affects how much you can work. You will need to provide a fit note (also known as a ‘sick note’) and complete a ‘Capability for Work’ (UC50) health questionnaire.
You will be told if you need a Work Capability
Assessment
An assessment is a way of finding out what help a person needs. When you have an assessment, you might have to go to a meeting or fill in a form.
(link to our WCA page). The Work Capability Assessment will decide if you are able to work, or need to prepare to work in the future. It will also decide if you will be paid extra Universal Credit because of your disability or health condition.
Will I be paid my housing costs?
If you are eligible for Universal Credit, you can claim for help with your housing costs. This is called a housing payment. Your housing payment can help you pay your:
- rent to a private landlord
- rent and service charges if you rent from a housing association or local authority, for example council housing
- service charges if you or your partner own the property you live in
If you live in supported or sheltered housing, you can apply for Universal Credit to help with housing costs if you’re not getting ‘care, support or supervision’ through your housing.
Can I have 2 weekly payments?
If you find it difficult to manage your money with a monthly payment, you can ask for your Universal Credit to be paid more often, for example twice a month. You can do this by asking for an Alternative Payment Arrangment.
You can ask for an Alternative Payment Arrangement:
- in your online Universal Credit account
- during a meeting or conversation with your work coach or case
manager
A manager is a boss at work. They tell you what you need to do and give you support if you need it.
- by phoning the Universal Credit helpline on 0800 328 5644
Do I have to attend appointments?
After you have applied for Universal Credit, you will usually need to go to a meeting at your local jobcentre to talk about your ‘claimant commitment’. Your claimant commitment is what you agree to do so that you can be paid Universal Credit.
If you find it difficult to go to a meeting at the jobcentre because of your health condition or disability, you can change where you have the meeting. You might be able to have the meeting at a place that is easier for you to get to, or by phone.
Do I have to move from Employment Support Allowance (ESA) to Universal Credit?
Universal Credit is replacing income-related Employment and Support Allowance (ESA). If you get ESA, you do not need to do anything unless:
- your circumstances change, or
- you need to make a new claim for benefits (for example you need to start to claim help with housing costs), or
- you get a letter called a ‘Migration Notice’ telling you that you must claim Universal Credit.
The information on this page is for
guidance
Guidance means being given clear instructions to be able to do something well.
only. Mencap hold no
responsibility
Responsibility is managing or being in charge of something.
for DWP processes, timescales, decisions and service.
As well as the DWP you can also contact the Learning Disability Helpline about any general welfare benefit queries.