People have been hearing a lot about Universal Credit (UC) – often with conflicting or misleading information about what it is and how it will impact them. This blog aims to spell out what UC is, how it is paid and when it will be coming to different areas.
What is Universal Credit?
Universal Credit is a single, monthly payment to support those who are out of work or who are in work but on a low income. It will replace some of the benefits and tax credits that people might be receiving at this current time, such as:
• Income-based Job Seekers Allowance (JSA)
• Income-related Employment Support Allowance (ESA)
• Income Support
• Child Tax Credit
• Working Tax Credit
• Housing Benefit
Who can apply?
To be able to apply you must:
• be living in England, Scotland or Wales;
• be 18 or over;
• be under State Pension age;
• not be in full-time education; and
• not have savings or capital (own property) over £16,000.
Universal Credit – key points
For now, single individuals making a new benefits claim will be placed on Universal Credit; however, more job centres are taking UC claims from couples and families. When you make an application online you will be advised whether you are in a ‘live’ or a ‘full’ service area. If you are in a live service area then only single claims will receive Universal Credit; in a full service area, families and joint claims will go on Universal Credit.
Universal Credit is paid directly to you; the amount that you receive will also include the money to pay your rent (if you were entitled to Housing Benefit). Therefore, you will now be responsible for paying your landlord directly.
Universal Credit is paid monthly in arrears; this means that it can take up to 6 weeks after you make a claim to get your first payment. It is important to ensure that you have the funds to cover yourself for this period.
There are no limits on the number of hours you can work in a week whilst on UC. Instead, the amount of UC you receive is based on how much money you earn. The more you earn the less UC you will receive.
You can only make a new claim online. Click here to make a claim. There is a telephone helpline: 0345 600 0723, should you need help applying.
If you have any concerns or questions regarding Universal Credit and how it might affect you, just tap the chat button and speak to one of our Dosh Mentors.
Site Title 