Universal Credit

UCG Bees

Everything we need to know about Universal Credit in one place

Universal Credit is a regular payment from the government to help with living costs if you’re on a low income or out of work. Universal Credit combines several older benefits into one. This means we now get a single monthly payment instead of separate ones.

It replaces:

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

*Most people now receive help with rent through Universal Credit, but some groups still get Housing Benefit. This includes people of pension age, and those living in certain supported or temporary accommodation. Read more about Housing Benefit here.

We’ll get a single monthly payment, which includes money for living costs, housing, and children if we’re responsible for any.

In theory, it’s simpler with one benefit instead a mix of these six. Most people have had no problems, but roughly one in five people have struggled. So we asked claimants who were first to move onto Universal Credit what they wished they’d been told at the start. Their Top Ten Tips now feature in this video…

How payments work

Universal Credit is usually paid once a month, into our bank, building society or credit union account. The payment includes all parts of our claim, such as rent and childcare if we qualify for those.

The first payment usually takes about five weeks. If we cannot wait that long, we can ask for an advance payment and pay it back over time.

If we live with a partner, we make a joint claim and receive one payment between us. This means we both share responsibility for managing it.

If managing monthly payments is difficult, ask our work coach about Alternative Payment Arrangements (APAs). These can include:

  • Split payments between partners
  • More frequent payments (for example, twice a month)
  • Rent paid directly to our landlord

For more information, visit www.gov.uk/universal-credit/how-youre-paid.

Getting online

Most Universal Credit applications and updates are done online. If we do not have regular internet access, there are still options available.

we can:

  • Use a library or community centre computer
  • Ask Jobcentre staff about help with getting online
  • Ask a friend, family member or community worker for support filling out forms

Managing money

Because Universal Credit is monthly, it helps to plan ahead. A simple budget can make sure bills and rent are paid before other spending.

We can:

  • Set up Direct Debits or standing orders for rent and bills to avoid missing payments
  • Use our Budget Planner to track income and spending
  • Open a basic bank account if we need one that does not charge fees or allow overdrafts
  • Ask our landlord if rent can be paid directly from our Universal Credit if that makes things easier

Work and job hunting

Universal Credit is there to help while we look for work or try to increase our hours. When we claim, we will agree a Claimant Commitment with our work coach, setting out what we will do to prepare for or look for work.

If we are already working, our Universal Credit adjusts as our income changes, so we are always better off for working more hours or taking home extra pay.

Read our guide on Universal Credit and work to find out more about how pay and hours affect our claim.

Extra help

There are a few types of extra support available if we are struggling with costs. These can make a big difference if money is tight.

  • Advance payments to cover the gap before our first Universal Credit payment
  • Budgeting Advances to help with one-off expenses such as furniture or job costs
  • Discretionary Housing Payments from our local council if our rent is not fully covered
  • Free School Meals if we have children
  • Council Tax Reduction, which we need to apply for separately through our local council

Citizens advice has a whole guide to the extra support we can access if we claim Universal Credit, like help with energy bills or housing support. Read it here

Where to get advice

There is help available if we are finding Universal Credit difficult to manage or just want to check something.

Try these trusted sources:

  • Citizens Advice – Help to Claim service with step-by-step Universal Credit support: citizensadvice.org.uk
  • Jobcentre Plus – our work coach can guide us on commitments and payments
  • MoneyHelper – free budgeting and debt advice: moneyhelper.org.uk
  • National Debtline – 0808 808 4000
  • StepChange Debt Charity – stepchange.org

In different parts of the UK: