Our Handy Guide to Universal Credit!
Guide to Universal Credit
Universal Credit is a significant benefit in the UK designed to support individuals and families with low income or who are out of work. This guide provides comprehensive information about what Universal Credit is, how it can help you, how to make a claim, eligibility criteria, and links to useful websites and organisations.
1. What is Universal Credit?
Definition: Universal Credit is a monthly payment to help with your living costs. It is designed to simplify the benefits system by replacing six existing benefits with a single monthly payment.
Benefits Replaced by Universal Credit:
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
How It Works:
- Single Monthly Payment: Paid directly into your bank, building society, or credit union account.
- Housing Costs: You may get an extra amount to help with housing costs.
- Work Incentives: Encourages work by reducing benefits gradually as you earn more money.
Useful Resource:
2. How Universal Credit Can Help You
Financial Support:
- Provides financial assistance to cover living costs, including rent and housing.
- Supports those with low income, unemployed, or unable to work due to health conditions.
Work-Related Support:
- Helps you prepare for work, find a job, and increase your earnings.
- Access to work coaches and employment support.
Childcare Costs:
- Helps with up to 85% of childcare costs if you’re working.
Budgeting and Financial Planning:
- Budgeting advance to help with emergency expenses or essential one-off payments.
- Financial planning support to manage your monthly payments.
Useful Resource:
3. How to Make a Claim
Steps to Make a Claim:
- Check Eligibility: Ensure you meet the eligibility criteria (see next section).
- Gather Information: Have the following information ready:
- National Insurance number
- Housing information (rent agreement, mortgage details)
- Income details (payslips, self-employment details)
- Savings and investments
- Childcare costs
- Apply Online: Complete your application on the Universal Credit website.
- Verification: You may need to verify your identity online or in person at a Jobcentre.
- Interview: Attend an interview with a work coach at your local Jobcentre to create a claimant commitment.
Useful Resource:
4. Eligibility Criteria
Basic Eligibility:
- You’re 18 or over (some exceptions for 16-17 year olds).
- You’re under State Pension age.
- You and your partner have £16,000 or less in savings between you.
- You live in the UK.
Employment Status:
- You can be employed, self-employed, unemployed, or unable to work due to health conditions.
Circumstances Considered:
- Your income and savings.
- Your family situation (if you have children or not).
- Your housing situation (whether you rent or own your home).
Useful Resource:
5. Useful Websites and Organisations
Government Websites:
Benefits Calculators:
Advice and Support:
- Citizens Advice – Help with Universal Credit
- Advice Local – Find Local Advice Services
- StepChange – Debt Advice and Support
Job Search Resources:
Budgeting and Financial Planning:
By following this guide, you can better understand Universal Credit, how it can support you, the steps to make a claim, and eligibility criteria. Utilize the provided links to access helpful resources and organisations that can offer further support and guidance. Good luck!