Universal Credit is a benefit payment for people in or out of work. It replaces some of the benefits and tax credits you might be getting now:

• Housing Benefit
• Child Tax Credit
• Income Support
• Working Tax Credit
• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance.

The Department for Work and Pensions (DWP) call these legacy benefits and, in general, you can no longer make a new claim for them. If you need extra support you'll have to claim Universal Credit.

If you’re currently claiming legacy benefits, and nothing changes in your life, you'll continue getting them until the DWP asks you move to Universal Credit. 

If you live with someone as a couple and you’re both entitled to claim Universal Credit, you’ll get a joint payment paid into a single bank account.

England and Wales

If you get help with your rent, this will be included in your monthly payment – you’ll then pay your landlord directly.

Scotland and Northern Ireland

Your rent can be paid directly to your landlord or you can choose to pay it yourself.

You might be able to claim Universal Credit if:

• you’re out of work or on a low income
• you’re aged 18 or over (there are some exceptions if you’re 16 or 17)
• you or your partner or spouse are under State Pension age
• you and your partner or spouse have less than £16,000 in savings
• you live in the UK.

There are some situations where you can claim Universal Credit if you’re 16 or 17-years-old, or when you’re studying.

How long does it take to get Universal Credit?

It’s important you apply for Universal Credit as soon as you’re entitled, even if you don’t think you qualify. This is because you might have to wait up to five weeks after claiming before your first payment, as it’s paid in arrears.

If you find a new job, or your circumstances change before your application is complete, you’ll be able to cancel it.

But at least you won’t have to start your application from scratch, or wait for your first payment. This could help you avoid needing to take out an advance payment.

You can apply for an advance payment if you don’t have enough to live on while you wait for your first payment.

If you're already getting legacy benefits, it's worth checking with a specialist benefits adviser before you apply to check that claiming Universal Credit is the right move for you. This is because you can't usually move back onto your old benefits once you're on Universal Credit.

Assessment date and assessment period

The date you submit your claim is the date of the month your Universal Credit payment will be paid. This is called your assessment date.

Universal Credit is paid monthly in arrears. So you’ll have to wait one calendar month from the date you submitted your application before you get your first payment. This is called your assessment period.

You then have to wait up to seven days for the payment to reach your bank account. This means it can take up to five weeks before you get your first payment.

How often is Universal Credit paid?

Universal Credit is paid monthly in arrears in England, Wales and Scotland. However, in Scotland, you can ask for fortnightly payments instead.

In Northern Ireland, the default payment period is every fortnight. But you can choose to get monthly payments.

How much is Universal Credit?

Universal Credit is made up of a basic allowance plus different elements for things like housing costs, bringing up children, caring or sickness and disability.

The amount you get in Universal Credit can go down or up, depending on what income you get from:

• working
• a pension
• other benefits
• savings and capital above £6,000.

There are no limits on how many hours a week you can work if you’re claiming Universal Credit. Instead, the amount you get will gradually reduce as you earn more – so you won’t lose all your benefits at once.

Universal Credit and working

You can work as many hours as you like when you’re on Universal Credit. There are no limits that there are with existing benefits such as Income Support or Working Tax Credits. If you’re in paid work, you might be entitled to a work allowance.

Universal Credit scams

Benefit claimants are being targeted by scammers offering low-cost loans or grants from the government.

You might be called by someone claiming to work for Jobcentre Plus, or contacted through social media ads. Many of the scammers have convincing websites, with government logos and testimonials.

They might ask for your ID and bank details. Then offer to make a claim for Universal Credit and apply for an advance payment on your behalf – taking some of this money as their fee.

If you’re offered a government loan and asked to give your ID and bank details, the scammer might be trying to make a Universal Credit application without your knowledge. It’s important to not give out these details – as you might not be entitled to Universal Credit and this could be seen as benefit fraud.

For further details about Universal Credit, please see this MoneyHelper article (click here).