Universal Credit is a new programme that helps people out of work or has a low income. It makes welfare payments easier by putting six benefits and tax credits into a single monthly payment. Housing benefits, JSA, Child Tax Credit, and Income Support, are paid out every month.

What are the steps in the process?

What are the Steps involved in this process

The payment is an essential standard allowance’ and any supplementary charges that may be allocated to you depending on your situation.

If you,

  • Watch one or more children, you may get additional pay.
  • You need help with your housing costs.
  • You work while also caring for your children.
  • You have a disability or are afflicted with a medical ailment.
  • You are a caregiver for a disabled person or the parent of a disabled child.

Additionally, many individuals utilize Universal Credit to assist them in paying their rent. But, particularly if you’re a young person renting from a private landlord, things become complicated: the amount of money you get for rent is set by a rate known as the Local Housing Allowance (LHA), which fluctuates depending on where you live.

The amount you will get from a social landlord, such as a council or housing association, is decided by the number of beds you are entitled to. If your property has more bedrooms than you need, Universal Credit may not be able to cover the whole rent, and you may be obliged to make up the difference.

What types of people are eligible for Universal Credit?

Eligible for Universal Credit

You may apply for Universal Credit if you have a low income or are unemployed.

Universal Credit is usually only accessible to individuals over the age of 18. However, depending on their circumstances, some people as young as 16 or 17 may be eligible.

People in extraordinary circumstances may be able to receive Universal Credit even if they are enrolled full-time in school or training.

Under the EU Settlement Scheme, Universal Credit may be available to EU, EEA, and Swiss residents with settled or pre-settled status. If you haven’t already, apply for EU Settlement Scheme.

A benefits calculator may assist you in determining what benefits you may be entitled to. You’ll be asked to enter information about your position, after which you’ll be told what helps you could be qualified for. One of them may be Universal Credit.

Go to gov.UK/universal-credit if you want to apply for Universal Credit right now.

What Universal Credit does not replace and what it does replace are the following,

  • Children Get a Tax Break
  • Allowance for Housing
  • income-based Allowance for Job Seekers income-based Allowance for Job Seekers income-based Allowance for Job Seekers s (JSA)
  • Funding for Employment and Support based on Income (ESA)

Employees’ Tax Credit

Employees Tax Credit

If you are presently getting these benefits or tax credits, you do not need to take any action. Before changing benefits or tax credits, DWP will contact you.

If your circumstances change, you must now apply for Universal Credit.

Universal Credit will replace these benefits and tax credits. Income-based JSA, ESA, or Income Support recipients may be eligible for a 2-week run-on payment beginning July 22, 2020.

Universal Credit may reduce your Council Tax, but you must apply for it. GOV. The UK lets you use it for Council Tax Reduction. You don’t have to wait until Universal Credit is approved or paid before applying for a Council Tax Reduction.

Keep your tax breaks

If you receive HMRC tax credits, applying for Universal Credit will terminate them. If your award expires, you can’t reopen or claim a new tax credit.

Universal Credit and tax credits have different eligibility requirements, including (but not limited to) your savings and residency status.

Please check the Universal Credit eligibility requirements before filing a claim if you currently receive tax credits. If your tax credit award hasn’t yet expired, you’ll need to decide whether you should keep receiving tax credits or apply for Universal Credit, based on your specific circumstances. You may use a benefits calculator to check who is eligible.

Extensions of time to pay

Starting July 22, 2020, if you get income-based JSA, ESA, or Income Support and opt to claim Universal Credit instead, or if a change in your circumstances compels you to, you may obtain up to two weeks’ worth of those benefits.

  • It is a one-time payment with no repayment obligations.
  • Automatically if you qualify, you don’t need to contact DWP.
  • It does not influence how much Universal Credit you will get.

These benefits would include payment if you paid for them with additional charges for partners and premiums. Unless they end during those two weeks, any deductions from your payments will be applied.

If you also get contribution-based JSA/ESA, this will be included in your additional payment. However, your contribution-based JSA/ESA payment will be taken from your Universal Credit payment.

Suppose you continue to receive contribution-based JSA/ESA while on Universal Credit. It will convert to New Style JSA/ESA is converted. New Style JSA/ESA reduces your Universal Credit payout.

If you or your spouse has attained the age of eligibility for the State Pension,

You may apply for Universal Credit if you or your spouse are under the age of the State Pension.

Suppose you are a mixed-age couple receiving Pension Credit or Housing benefits. If you are above State Pension age and the other is under, you’ll claim Universal Credit together (this is known as a mixed-age couple).

You may switch to Pension Credit and Housing Benefit when you reach the State Pension age. If your claim is stopped or your circumstances change, you may require Universal Credit. If your circumstances don’t change, you’ll keep getting advantages.


Universal Credit is a new benefit for working-age individuals that takes the place of several former honours and tax credits. It’s designed to help those with little (or no) income with their essential living expenses and housing bills.

The overall number of Universal Credit claims has topped 5.1 million since its inception. There were 2.3 million people on Universal Credit in July 2019, up 5% from June and a staggering 123 per cent increase from July 2018.

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