Universal Credit more detailed guide

Universal Credit more detailed guide

This guide to Universal Credit includes who it applies to and where to find further support and information - including in Newcastle

What is Universal Credit?

Universal Credit is a new government benefit which is replacing the following working age and means tested (or 'income related') benefits:

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

These six benefits are called 'legacy benefits'.

Universal Credit is not replacing these other means tested benefits:

  • Council Tax Reduction, which is administered by local councils.  Important: This needs to be claimed as well as Universal Credit. It is not paid automatically
  • Pension Credit (for people of pension age)
  • Housing Benefit for those of Pension Credit age (but see below about 'mixed age couples') 
  • Housing Benefit for those in specified accommodation like supported housing - although Universal Credit should be claimed for the rest of their needs. Details from Shelter

All the other benefits (known as ‘non means tested’) continue, including contribution based JSA which has become 'New Style JSA', contributory Employment and Support Allowance (ESA), which has become 'New Style ESA', disability benefits like Personal Independence Payment, pension age benefits, Child Benefit and many others. For more details, see  'other benefits' below and benefits information

Who can get Universal Credit?

The reasons for getting Universal Credit are similar to those for the 'legacy benefits' that it is replacing. For example, having no or little income, being too ill to work, in work, unemployed, a lone parent, a carer, or needing help with rent. However, many rules and amounts differ. For example, Universal Credit does not have any working hours limits as with Working Tax Credit.

Universal Credit is normally payable to one person in the benefit ‘household’ – which includes a partner and any dependent children they are responsible for. 

Universal Credit is a 'working age' benefit. That means it is payable from 18 years old up to 'Pension Credit qualifying age' which depends on your date of birth and can be calculated online . It can be paid to 16 and 17 year olds in limited circumstances, such as being a carer or ill or estranged from parents.

How much is Universal Credit?

The amount you get will depend on:

  • your (or your partner's) income and savings,
  • your age(s),
  • family circumstances (such as children, a couple or single),
  • if you or your partner are incapable of work or a carer,
  • if you have housing costs - like rent,
  • entitlement to a transitional amount

How do I claim Universal Credit?

The government expects almost everyone to claim and manage their Universal Credit online. This link takes you to the Government's Universal Credit online claim page.

The first step in claiming Universal Credit is create an account, where you provide basic information including a useable email address, a phone number, a username and password - which you must remember. You are then sent a one time passcode to your mobile phone to use. This enables you to go onto make your actual online claim for Universal Credit, which may take from 30 minutes to an hour or more, depending on your circumstances.

The DWP also say you claim via their Universal Credit helpline, which includes a freephone telephone number, Relay UK (if you cannot hear or speak on the phone) or video relay service for British Sign Language users. The telephone number is 0800 328 5644 - available from Monday to Friday, 8am to 6pm.  More details on the Universal Credit helpline

Help with rent

As described above, Universal Credit replaces Housing Benefit (called Local Housing Allowance for private tenants) for working age tenants. This help with rent - called 'housing costs' is included in Universal Credit and, along with the rest of your Universal Credit is paid direct to you, rather than to your landlord. However, if you are in debt, rent arrears or vulnerable, you can ask for your housing costs element be paid direct to your landlord for a temporary period - called a ‘managed payment’, under the Alternative Payment Arrangements scheme. You can also request an amount of your Universal Credit goes towards paying off rent arrears. 

For more details, see Get help with debt and rent arrears if you're on Universal Credit  from Citizens Advice, Universal Credit and rented housing: guide for landlords from the Goverment and Extra help and support with Universal Credit - including Newcastle below 

If you live in ‘specified’ accommodation such as a hostel, women's refuge or supported accommodation, you get Housing Benefit instead of housing costs in your Universal Credit.

If you receive Housing Benefit when you apply for Universal Credit, your Housing Benefit will continue for two weeks. This should happen automatically but if you move home you should contact the council to check. 

Payments and delays

If you are entitled to Universal Credit, payments will be made one month in arrears.  It can mean a five week or longer wait for the first Universal Credit payment. There may be additional delays with administrative or verification issues. If so you can ask for an 'Advance payment of Universal Credit'. 

How do I receive my Universal Credit?

To receive Universal Credit you will need an account with a bank, building society or credit union. The credit union for people in the North East of England is Moneywise.  If you can't use an account, Jobcentre Plus may use a Payment Exception Service.  Each have their own criteria and limitations. 

The amount of Universal Credit paid may also be reduced in several ways. 

For example,

Work related activity you may be expected to do and what may happen if you fail to do it

There are various levels of work-related requirements that most claimants and their partners have to do in return for receiving Universal Credit, depending on their circumstances. This can range from being fully available for and seeking full time work and taking part in mandatory work activities to having no work related requirements. These requirements are included in the Claimant Commitment agreement that you have to go through with the Jobcentre Plus ‘Work Coach’ after your claim

You can ask the Claimant Commitment and your work requirements be reviewed and changed if they do not match your situation. 

Will my benefit go up or down when I move to Universal Credit?

'Managed migration'

In stages, those still on 'legacy benefits' are being invited by letter to claim Universal Credit, called 'managed migration'. If their 'legacy benefits' are higher than Universal Credit, they will keep the difference, called ‘transitional protection'. However, this amount is frozen until the Universal Credit amount catches up with it with inflation and it can also be lost with a change in circumstances such as a partner leaving or joining the household or if earnings fall below a certain level

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