Could you benefit from Universal Credit?

If you’re in a position where you are out of a job or have a low income, then you might need to apply for Universal Credit. Here’s our guide to what it is and how it might be able to help you:

 

What is Universal Credit?

 

Universal Credit is a relatively new benefit, introduced in 2013. The idea was announced by Iain Duncan Smith at the Conservative Party Conference in 2010 as part of plans to simplify the benefits system.

 

It is being gradually rolled out across the UK and, as the Money Advice Service highlights, will replace the following six benefits:

 

* Jobseeker’s Allowance

 

* Employment and Support Allowance

 

* Income Support

 

* Child Tax Credit

 

* Working Tax Credit

 

* Housing Benefit

 

The amount you can receive will depend on your circumstances, but the total you can claim is capped at up to £20,000 a year outside London or £23,000 in London (this takes into account other benefits as well as Universal Credit).

 

Where is Universal Credit being issued?

 

Universal Credit has been gradually rolled out since 2013, with batches of Jobcentres across the country moving on to the new system in the time since then.

 

Not everywhere in the country has moved over to this new form of benefit, it’s important to check with your local jobcentre or look at the roll-out schedule from Turn2Us to see when it will be coming in for you.

 

Will your benefit be stopped when you work?

 

There is no limit to the number of hours you are allowed to work while still receiving Universal Credit (marking a change from the previous system). As The Mirror notes, you’ll now gradually see a reduction in the benefit you receive once you start earning £192 a month (or more if you have children).

 

What if I have an illness or disability?

 

If you have a long term illness or disability that requires personal care or support with your mobility, then you will need to apply for Personal Independence Payments (PIPs) and not Universal Credit.

 

Benefit changes to note

 

It’s also important to note that there are changes that may impact on how you benefit from Universal Credit.

 

From April, those claiming for Universal Credit will be limited to support for their first two children. Applicants will be expected to prepare for work when their youngest child is two and actually look for work when they are three.

 

Also from April, if you are aged between 18 and 21 and unemployed, you won’t automatically get housing support if you claim for Universal Credit.

 

People in this age bracket will need to take part in a ‘youth obligation’ for six months to be able to claim Universal Benefit in which you would be given support to get the skills you need for work.

 

If you’re already receiving one of the six benefits mentioned above, it’s important to read up on how things will be different when you switch over to Universal Credit.