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Chronicle Live

National

Sara Nichol

Five things you may not know about Universal Credit - including not always having to look for a job

Universal Credit DWP

Nearly six million people in the UK currently claim Universal Credit, making it one of the most common benefits in the country.

However, the rules around Universal Credit, including who can claim it and what you're allowed to do while claiming it, can be complex. Some people are also unsure about what happens if you're claiming an older benefit and you're due to move over to Universal Credit, according to The Mirror.

Here, we explain five things you may not realise about the benefit.

Universal Credit isn’t based on the number of hours you work

The number of hours you work won’t affect your Universal Credit claim - instead, your award is based on your earnings. Your claim is made up of a "standard allowance" and if you're eligible, you may get additional payments on top of this.

For example, you could be entitled to more money if you look after a child, or you're unable to work due to health issues. These are all applied to give your total figure before any deductions are then made based on your earnings, if you have savings, and other measures.

The standard allowance is:

Single under 25: £292.11 per month
Single 25 or over: £368.74 per month
Joint claimants both under 25: £458.51 per month
Joint claimants, one or both 25 or over: £578.82 per month

If you work, there is a taper rate which reduces your maximum Universal Credit payment as your earnings increase. The taper rate is 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn.

But some people get a "work allowance" which is a set amount you can earn before your Universal Credit is reduced. This is normally only available to those who have responsibility for a child or has a disability or health condition that affects their ability to work.

Currently, the work allowance is:

£379 a month - if you get help with housing costs
£631 a month - if you don't get help with housing costs

If you get a work allowance then your Universal Credit will be reduced by 55p for every £1 you earn above your work allowance.

Not everyone has to try and find work while claiming Universal Credit

Everyone claiming Universal Credit has a "claimant commitment" which outlines what you're expected to do in order to keep receiving the benefit. This will depend entirely on your circumstances, such as your health, caring responsibilities and whether you work or not at the moment.

If you fail to meet your claimant commitment, you might be sanctioned and your Universal Credit could be reduced. There are certain circumstances where you'll be placed in the "no work-related requirements" group - this means you won’t be expected to find work.

For example, you may fit into this group if you have limited capability for work and work-related activity, you care for someone, or you look after a young child. You can find out if you're expected to look for work by checking your claimant commitment.

Universal Credit isn’t replacing all benefits

Universal Credit is replacing the following legacy benefits, which are currently being claimed by more than two million Brits:

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

Households currently claiming these benefits will be moved over to Universal Credit by the end of 2024. The only exception is people who get Income-related ESA and do not get Tax Credits - these people will not be moved to Universal Credit until 2028.

Other benefits not including in the list above - such as Pension Credit and Attendance Allowance - will not be replaced. When it is your turn to be moved across to Universal Credit, you'll receive a "migration notice" in the post. This will give you a three-month deadline to claim UC.

If you don't start a claim for Universal Credit within this time, your current benefits will automatically stop. You can choose to move over earlier, if you think you will be better off - but you need to do your research first, as you can't move back to legacy benefits.

Some people may also be moved across to Universal Credit early if they see a change in circumstances - for example, if they move home or change their working hours. If you are moved over to Universal Credit without choice, and you'll be worse off, you will get monthly transition payments which are designed to make cover the shortfall of payments.

You may not be worse off on Universal Credit compared to older benefits

The DWP put out figures last year detailing how many people out of the 2.6million benefit claims it was moving across would be better or worse off after transitioning to Universal Credit. At the time, the DWP claimed 1.4million people (55%) will be better off on Universal Credit, and 900,000 (35%) would be worse off.

The other 300,000 benefit claimants will see no change. Make sure you do your research before you move across by using a free benefits calculator online and speaking to a charity such as Turn2Us.

You can get extra help if you’re struggling on Universal Credit

It can take up to five weeks before your Universal Credit claim is complete, and in the meantime any existing benefits you receive will stop altogether too. If you are struggling during this wait, you might be able to apply for an advance payment - but keep in mind this is technically a loan and needs to be paid back.

You can borrow up to 100% of your estimated payment, although you can also ask for less as well. The money will be transferred to you within three working days and is supposed to last the full five weeks before your first payment.

If you have been claiming Universal Credit for six months or more, you may be able to claim a Budgeting advance to help you with emergency household costs. The smallest amount you can borrow is £100 but you can get up to: