Universal Credit: Benefits, Eligibility, and How to Apply

Universal Credit provides financial support for those with low or no income. Discover eligibility, how to apply, and benefit amounts. Continue reading!

Por: Thais em 10 de November de 2024 Última atualização em: 9 de December de 2024

What is Universal Credit?

Universal Credit is a single monthly payment that consolidates several former benefits into one. It was created to simplify the welfare system, making it easier for people to manage their finances and access support when needed.

UC replaces six different benefits:

Income-Related Employment and Support Allowance (ESA): Financial help for those unable to work due to disabilities or health conditions.
Income-Based Jobseeker’s Allowance (JSA): Support for people actively looking for work but with limited or no income.
Income Support: For those with low income who may not be able to work due to caregiving responsibilities or other reasons.
Child Tax Credit (CTC): Financial assistance for families to help cover child-related expenses.
Working Tax Credit (WTC): Extra financial support for low-income workers.
Housing Benefit: Helps with rent payments for those experiencing financial hardship.

By combining these benefits, Universal Credit covers a variety of needs, from housing and childcare to daily living costs, all in one place. This consolidation means claimants only need to apply once to cover multiple needs, making it easier to manage daily expenses.

How Universal Credit Works

Universal Credit works as a monthly payment cycle, similar to a regular paycheck. Here’s a step-by-step look at the process:

Applying: Applications are completed online through the official portal, requiring personal, income, and household information.
Assessment Period: There’s an initial one-month assessment period where your financial situation is reviewed. You may need to provide additional documents, like bank statements or proof of rent.
Payment Calculation: After the assessment, the amount you’re eligible for is determined based on your situation, which may include:
- A standard allowance (for single claimants or couples)
- Additional support for children or disabilities
- Housing costs for rent or mortgage
Monthly Payments: After the assessment period, payments are made monthly to your bank account. The amount may vary if your income or household circumstances change.
Work Requirements: If you’re able to work, you’ll be expected to actively look for a job or work more hours, as documented in a “claimant commitment.”
Reporting Changes: Changes in income, household size, or housing need to be reported, as they can impact your eligibility or payment amounts.

Is Universal Credit for Everyone?

However, such employees do not have to worry about Universal Credit as it is designed especially for those with little income or no work. Here are some key eligibility criteria:

Age: To qualify you must be aged at least 16 but under State Pension age.

Residence: To be eligible, you must be living in the UK, have ‘settled’ status, or be a UK or Republic of Ireland citizen.

Income and Savings: Your savings can not be more than £16,000. If you possess savings beyond this amount you will not be eligible to have UC.

Work Status: You can be employed, be self-employed, or be jobless. However, if you are working, there are specific earning limits within which one can work and still be under UC.

If you do not fit all these requirements you will not be able to qualify for Universal Credit but there are other ways you can obtain support in the United Kingdom.

How Much Do You Get for Universal Credit?

The amount you receive from Universal Credit varies based on several factors:

Standard Allowance:

Single claimants under 25: £265.31

Single claimants aged 25 or over: £334.91

Couples under 25: £416.45

Couples where either partner is 25 or over: £525.72

Child Elements:

For the first child (born before April 2017): £290.00

For subsequent children (born before April 2017): £244.58

For children born after April 2017: £244.58 each

Housing Costs: It ranges depending on the rent that you pay and your geolocation.

Additional Elements:

Further amounts can apply in case of disability or in case another person is disabled considerably.

These numbers can vary from one year to the other depending on the government’s review and budget.

Is Universal Credit Worth It?

Many wonder whether Universal Credit is the right option compared to traditional benefits. Here are a few of its key advantages:

Tax-Free Financial Support: Payments are tax-free, meaning you won’t have deductions on your Universal Credit income.
Higher Overall Support: It often provides higher support, especially for families with multiple needs (like housing and childcare).
Flexibility: With Universal Credit, you receive a payment that covers a range of needs, providing a stable base to build on as you seek employment.
Long-Term Stability: Universal Credit supports a gradual transition to stable employment by adjusting as claimants’ incomes change, helping create long-term financial security.

How to Claim Universal Credit

Claiming Universal Credit involves several steps:

Prepare Your Information: Collect documents like passport/driver’s license, bank statements, details about your income /savings and details of you housing expenses.

Online Application: Visit the official government website to start your application process online.

Complete Your Claim: Fill out all required information accurately and submit any necessary documents as requested during the application process.

Attend an Interview: You may need to attend an interview at your local Jobcentre Plus where they will discuss your claim and work requirements.

Receive Your Decision: After processing your claim, you will receive a decision about your eligibility for Universal Credit and how much you will receive.

Set Up Your Online Account: Once approved, create an online account where you can manage your claim, report changes in circumstances, and communicate with support staff.

TAP HERE TO ACCESS THE WEBSITE AND APPLY FOR UNIVERSAL CREDIT ONLINE

How to Get in Touch with Universal Credit

You have several options to get in touch with Universal Credit:

Via Your Online Account: Use your online account to access support.
By Phone: Call the Universal Credit helpline for assistance.

Universal Credit Helpline

Phone: 0800 328 5644
Textphone: 0800 328 1344
Relay UK: Dial 18001 then 0800 328 5644 (for those who have difficulty hearing or speaking on the phone).
British Sign Language (BSL): video relay service if you’re on a computer, find out how to use the service on mobile or tablet
Welsh Language Support: 0800 328 1744
Hours: Monday to Friday, from 8 am to 6 pm
Call Charges: Learn more about potential call costs.

Explore Other Benefits You May Be Eligible For

While Universal Credit is a key support system, there are other benefits and forms of financial assistance available that may complement your Universal Credit payments or provide additional support for specific needs. Here’s a look at some additional benefits that could be available, depending on your circumstances:

1. Council Tax Reduction (CTR)

Council Tax Reduction helps low-income individuals or families reduce the cost of their council tax bill. Eligibility and reduction amounts vary based on income, household size, and local council regulations. This benefit can often be applied for directly through your local council’s website.

2. Personal Independence Payment (PIP)

Personal Independence Payment is for people with long-term physical or mental health conditions or disabilities. It helps cover the extra costs associated with living with a disability and is available even if you are employed. PIP is based on the level of difficulty faced in daily activities and mobility, not on income or employment status.

3. Disability Living Allowance for Children

For parents or guardians of children under 16 with disabilities, the Disability Living Allowance (DLA) for children provides financial support to help cover additional costs. This benefit is separate from Universal Credit and does not affect eligibility for other forms of assistance.

4. Carer’s Allowance

If you care for someone with substantial care needs for at least 35 hours a week, you may be eligible for Carer’s Allowance. This benefit is available for both employed and unemployed individuals and can be claimed alongside Universal Credit, although it may impact the total amount received from Universal Credit.

5. Healthy Start Scheme

The Healthy Start Scheme is designed to support pregnant women and families with young children who are on a low income. This benefit provides vouchers to purchase healthy food, milk, and vitamins, helping to ensure that nutritional needs are met during early childhood. Eligibility depends on income and the number of children in the household.

6. Budgeting Advance from Universal Credit

For one-off expenses, a Budgeting Advance may be available through Universal Credit. This advance can help cover unexpected costs, such as a broken appliance or essential travel. The advance is repaid through future Universal Credit payments, making it an accessible option for those with immediate financial needs.

7. Child Benefit

Child Benefit provides monthly payments to families raising children, regardless of income level. While this benefit is not means-tested, higher-income earners may be subject to tax on Child Benefit payments. This benefit can be claimed in addition to Universal Credit and is a helpful supplement for families with children.

8. Winter Fuel Payment and Cold Weather Payment

These seasonal benefits are aimed at helping people cover the cost of heating during the winter months. The Winter Fuel Payment is available to people above a certain age, while the Cold Weather Payment is for low-income individuals on certain benefits, including Universal Credit, during periods of exceptionally cold weather.

9. Housing Grants and Support

Some local councils offer housing grants for repairs, modifications, or rental assistance. If you’re on a low income, you might be eligible for grants to improve your living conditions, particularly if you have a disability or health condition that requires specific accommodations.

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