Universal Credit: Explained

What is Universal Credit (UC)?

Universal Credit is a means-tested benefit for people of  working age who are on a low income.
It replaces six means-tested benefits:

Income Support
Income-based Jobseeker’s Allowance (JSA)
Income-related Employment and Support Allowance (ESA)
Housing Benefit
Child Tax Credit
Working Tax Credit.

These six benefits are also known as legacy benefits.

Universal Credit is paid monthly and includes an element for rent. Claimants are expected to pay their rent from the monthly Universal Credit they receive.

Who can claim UC?

To get Universal Credit you must:

be 18 years old or over - or in some cases 16 or 17
be under State Pension age
live in the UK - there are extra rules if you’re not a British citizen
have less than £16,000 in savings

If you live with a partner, their income and savings will be taken into account.

You can get Universal Credit if you’re living with other people but it might affect how much you get. For example, living with parents might mean you get less help with housing costs.

You can get Universal Credit if you’re self-employed - the application process is the same.

Whether you’ll be able to get Universal Credit depends on your situation.

Frequently Asked Questions

Can I stay on the benefits I get now instead of applying for UC?

Yes.

Eventually the government will move all working age benefit claimants on to Universal Credit but for now you only need to claim it if you have a change in circumstances. Examples could be:

Lost your job and have no income
Income has dropped but you’re still working
You have a disability or illness that stops you working
Expensive childcare costs
You’re caring for someone
You move into the area, rent a property and need help to pay your rent
You stop being a carer for someone

Can I apply for UC to replace the benefits I’m on now? How can I find out if I’ll be better off?

Yes.

Some people on the old ‘legacy benefits’ may be better off claiming Universal Credit instead.

People who are likely to be better off:

Tenants with adult non-dependants living with some, eg a grown up child or family member
Joint tenants affected by the bedroom tax
Working low hours and/or paying for childcare
Fluctuating hours at work
Working carers

People who are likely to be worse off:

People affected by the benefit cap
Have a disability or disabled children
Sight impaired
Single, under 25 and claiming Employment Support Allowance
Couples both aged under 25
Someone doing ‘permitted work’
Disabled and a carer

Try this calculator for more support.

WARNING - once you apply for Universal Credit, you cannot undo this. If you're not sure whether you will be better off, get advice first.

Can I get help with council tax in my UC?

No.

Help with your council tax is still processed by the council. Contact your local council and apply for a council tax reduction.

I don’t have a bank account, how do I get one if I have a poor credit rating?

Click here for up to date information on getting a basic bank account where you don’t need a good credit rating and you can’t go overdrawn.

I’m worried about being paid monthly and getting into arrears with my rent.

You can ask for the ‘rent element’ of your Universal Credit to be paid directly to your landlord. Aspire Housing can help process this for you, you can ask for this when you become a tenant or at any time during your tenancy by contacting our rent team.

What about free school meals, prescriptions, etc?

Click here for information on help with free school meals.

Click here for useful information on help with health costs.

Who can help me if I’m struggling to make a UC claim?

Citizens Advice has a helpline specifically to help people making a claim for Universal Credit. Click here for more information.

Where is the best place to get advice on Universal credit, benefits, budgeting and debt?

Our award-winning Money Advice Team can help you with all issues relating to money. You can speak to them on the phone, have a meeting using Microsoft Teams, chat with them on our website or visit one of our face to face surgeries in the Newcastle borough – click here for more information.

We also recommend these websites:

Money Helper – click here

Citizens Advice – click here

Is there a leaflet that explains this? I prefer information in writing compared to online.

Click here for a 'Understand Universal – Get The Facts' leaflet.

Want to know more?

If you have more questions about Universal Credit or benefits, head over to our FAQ's for more support.

Click here