Universal Credit – What is it?
Universal Credit (UC) replaces six common benefits paid to people between 18 and state pension age, including:
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
Put simply, if you receive any of the benefits listed , you get one payment into your bank account, rather than a single payment for each.
FAQs
The initial claim will have to be made online.
You can get free support from trained advisers to make a Universal Credit claim. They can help you with things like online applications or preparing for your first jobcentre appointment.
The Help to Claim service is provided by Citizens Advice and is confidential. They will not share your personal information unless you agree.
Universal Credit helper
If you're making a claim for Universal Credit and don't know where to start, we've got a really handy guide for you. Our Universal Credit helper is a simple step-by-step guide on how to apply, what each stage of your claim means, and the information you'll need to have for every stage. If you need further help, give us a call on 01494 476100.
UC will consist of a single, monthly payment which is paid in arrears and directly into your bank account.
Couples living in the same household will receive one monthly payment between them.
Households will then be responsible for managing their own rent payments.
Along with the assessment period of one month, you may also need to allow for a further 14 days' delay (seven days either side of the assessment period):
- One month assessment period
- Seven-day payment period for administration purposes before you receive your first UC payment
Important: Consider putting money aside and topping up your rent account in advance to tide you over this five-to-six-week delay until your first Universal Credit payment arrives.
In exceptional circumstances, yes, more frequent payments is one of the Alternative Payment Arrangements (APA) that the Department for Work and Pensions (DWP) will consider if you are having difficulty budgeting. APAs are temporary solutions for six months. You should contact DWP/Jobcentre for personal budgeting support.
Possibly. If you have significant support needs, an APA may be set up. This could involve either:
- Rent paid directly to Red Kite
- More frequent payments
- Splitting the payment within the household
DWP staff will consider information from both tenants and landlords before taking a decision to set up an APA.
We're here to help and can put you in touch with the right support if you're experiencing financial difficulties.
Please contact us or visit www.gov.uk/universal-credit.
Managed migration - the move to Universal Credit
The government have begun their managed migration programme to move people claiming benefits onto UC. This is a five-year programme - it will not happen overnight! - but it's important to understand how and when this may affect you, if you currently claim one or more of the benefits listed above, known as legacy benefits.
UC is not replacing any other benefits, such as pension-age Housing Benefit, Housing Benefit in special accommodation, or Council Tax Support.
The managed migration programme has now started in Buckinghamshire. If you are currently claiming child tax credits and/or working tax credits only, you will get a letter from the Department for Work and Pensions (DWP), called a Universal Credit migration notice or stop notice, explaining that these benefits will be ending.
The letter will ask you to apply for UC (or Pension Credit if you are over 65). You will need to make a new claim for UC within three months of receiving this notice. You will be sent a reminder two weeks before the deadline, but you should start your new claim as soon as possible after receiving your stop notice letter.
Please do not ignore this letter. If you are in receipt of tax credits this will stop immediately at the date specified in your stop notice.
We have put together some answers to frequently asked questions about managed migration:
Managed migration FAQs
No. Although this process is called ‘managed migration’, you won’t move over onto Universal Credit automatically. You will need to make a claim for Universal Credit within three months of receiving written notice that your existing legacy benefits will be ending.
You should start your new claim as soon as possible after receiving your stop notice letter. If you do miss the deadline, you can still make a claim for up to one calendar month after the deadline date and get full UC backdated to the deadline date. If you do not make a claim for over a month after the deadline, you will miss out on UC payments.
If you think you won’t be able to claim UC by the deadline date, you should contact the Universal Credit Migration Notice helpline as soon as possible. They may give you more time to make a claim if you have a good reason. You must request this before the deadline date on your letter.
UC is only replacing the six means-tested legacy benefits listed above. It is not replacing any other benefits such as Carer’s Allowance, council tax support, or Disability Living Allowance/Personal Independence Payment.
Because you get Housing Benefit - another legacy benefit - you are not a tax credits-only claimant. You won’t need to claim UC until sometime later in 2025. You will receive more information about this nearer the time.
Under UC, some people are better off, but others will be worse off - but if you get a Migration Notice letter you do not have a choice!
So long as you claim Universal Credit before the three-month deadline (or any agreed extension), you’ll be eligible for transitional protection payments. These payments will top up your UC if it’s less than you were getting from your legacy benefits.
If you do not claim by the deadline (or any agreed extension), you will not be eligible for transitional protection payments. This is the same even if you claim UC at a later date.
The government have been encouraging people to make a 'voluntary' move to UC, as they think this could make many households better off.
There’s also a social media campaign by the DWP to 'suggest' people move to UC voluntarily.
You should get independent advice before deciding to move voluntarily to UC. Online benefit calculators may help you to work out if you will be better off, but they can be misleading as the personal circumstances for each claimant can be complex.
To continue to receive financial support, you will need to claim UC by the deadline stated in your Migration Notice letter, even if you have just renewed your tax credits claim.
Citizens Advice have Help to Claim advisers who can help you with the early stages of your Universal Credit claim. You can talk to them on the phone, or online over chat.
The government have also listed a range of support services available to help you prepare for your move to Universal Credit.