home supporting you money matters advice about benefits

advice about benefits

what is Universal Credit?

Universal Credit (UC) is a means-tested benefit for people of a working age who are on a low income. Universal Credit replaced Housing Benefit, Income-based job seekers allowance, Income-based employment & support allowance, Income support, Child tax credits and Working tax credits.

Universal Credit will be paid to you in a single monthly payment, broken down into two separate elements:

Personal element – This helps to cover everyday living costs for you and your family
Housing element – This is the money that you need to pay to your landlord for your rent

when will I have to claim Universal Credit?

If your circumstances have changed and you need to make a new benefit claim it is likely that you will need to claim Universal Credit. Likewise, if you have a significant change in circumstances that will affect your current benefit entitlement you may be advised to claim it.

If you're unsure of anything or would like more information, our Welfare Team is here to help. You can also visit  www.gov.uk/universalcredit

be prepared

Before making a claim you will need the following so that you can receive your UC payments as soon as possible:

Access to a computer and the internet – To make and manage an online claim
An email address – To register and receive updates regarding your claim
Details of your household members – Dates of birth are required
Verification – As part of the claim you will need to verify yourself with the DWP – further information can be found here
A bank or credit union account – To receive your UC payments into and to set up regular payments to your rent account via direct debit or standing order
A copy of your tenancy agreement – To provide proof of your rent and/or service charges

Your claim can take up to 5 weeks after providing all the supporting evidence needed. During this time you can apply for an 'Advanced Payment' which will be equal to your monthly payment (you can pay this back over 12 months). Find out how to apply for an 'Advanced Payment' here.

You may also be entitled to a 2 week ‘run on’ of Housing Benefit payments to help reduce any rent arrears on your account – maximum Housing Benefit will be paid minus any deductions for spare bedrooms and non-dependants.

If you are moving between Local Authorities this ‘run on’ will be paid by your old Local Authority, it is important that you contact them to request the ‘run on’ which may be paid directly to yourself.

what do the recent changes to Universal Credit mean for me?

The £20.00 uplift awarded due to the pandemic has now been removed
The Work allowances will increase & the earnings taper will change from 63p in the pound to 55p from December 2021
For customers who are out of work, they will see their Universal credit payments reduced by £86.00 per month.

Our Engagement & Partnership Team are here to help if you need support getting back into the workplace, you can drop them an email for more information or advice.

UC customers who are in work and have responsibility for a child or have limited capability for work will see their work allowances increase from:

£293 to £335 if your Universal Credit Claim includes Housing support
£515 to £557 if you don’t receive housing support.

Previously for every working UC customer, every £1 earned over their work allowance was reduced (known as the UC earnings taper) by 63p and deducted automatically from any UC entitlement. Following the budget announcements this has been reduced to 55p leaving working UC customers retaining more of their earned income than previously.

This also means that customers who may not have qualified for Universal Credit may now qualify.

Try out our Benefits Calculator to find out if you would now be eligible for UC. If you would like our Welfare Team to help you check please contact us on 0800 169 2988 or drop us an email.