Universal Credit is a new benefit to support you if you’re working and on a low income or you’re out of work. This page explains how Universal Credit is different from existing benefits, how much you’ll be paid and how to apply for it.
In Northern Ireland, Universal Credit works differently. Find out more on the nidirect website.
In Scotland, you might be offered some choices about how your Universal Credit is paid. Read our guide to Universal Credit in Scotland.
Universal Credit is a single monthly payment for people in or out of work.
It replaces some of the benefits and tax credits you might be getting now:
You might have to wait up to five weeks before your first payment.
Make the most of your Universal Credit payment with personalised help from our Money Manager tool.
Don’t delay making your claim for Universal Credit and apply as soon as you are entitled to do so as it can take up to five weeks for your first payment to reach your account.
The date you submit your claim is the date of the month your Universal Credit payment will be paid. This is called your assessment date.
Universal Credit is paid monthly in arrears, so you’ll have to wait one calendar month from the date you submitted your application before your first UC payment is made. This is called your assessment period.
You then have to wait up to seven days for the payment to reach your bank account.
This means it can take up to five weeks before you get your first payment.
Universal Credit is made up of a standard allowance plus elements for:
Your maximum Universal Credit award is made up of:
You will get the maximum award if your household has no other earnings and savings or capital of £6,000 or less.
If you or someone in your household has other earnings and/or savings, these will be taken into account when working out your Universal Credit payment.
If you’re working and on Universal Credit, find out if you qualify for the Help to Save account, which gives you up to a 50% bonus from the government on your savings.
You can work as many hours as you like when you’re on Universal Credit.
There are no limits as there are with existing benefits such as Income Support or Working Tax Credits.
If you’re in paid work you might be entitled to a work allowance.
The work allowance is the amount of money you’re allowed to earn before your Universal Credit payment is affected.
You will be entitled to a work allowance if you’re:
If you’re entitled to the work allowance, you can earn up to the threshold for your circumstances.
Your Universal Credit payment will then go down by 63p for every £1 you earn above this amount. This is called the earnings taper.
If you don’t qualify for the work allowance, your Universal Credit payment will go down by 63p for every £1 on all your earnings.
Employer-paid benefits, such as Statutory Maternity, Paternity, Adoption and Sick Pay are treated as earnings and are affected by the taper.
Watch the video from the Department for Work and Pensions (DWP) to find out.
Some income that you didn’t get from working can be deducted from your maximum award. This is called unearned income.
Unearned income that will be taken off your Universal Credit payment includes:
Usually £1 will be deducted from your Universal Credit payment for every £1 of unearned income.
Unearned income that won’t be taken off your Universal Credit payment includes:
If you have savings or capital (from things like investments or shares) this might affect how much Universal Credit you’ll get.
If you need help getting online your Jobcentre or local council can provide support. Find out where to get support on Online Centres Network.
If you’re entitled to claim Universal Credit, you are expected to make your claim online on the Apply for Universal Credit website.
You can find a list of the information you’ll need to provide before you start your claim on Making a Universal Credit claim.
If you and your partner are making a joint claim, only one of you will need to complete the online claim form, but that person will need to enter details for both of you.
If you’re worried about using a computer to make your claim, it’s important you get help. This is because your claim will not start until you have sent your online form.
If you don’t have access to a computer at home, you might be able to use one for free at your local Jobcentre, library, Citizens Advice or council.
You might also be able to get help filling in the application at one of these centres. Not all will be able to offer this service, so check before you go. However, you could get a friend or family member to help you.
If you’re new to computers or haven’t felt confident about using them in the past, now is a good time to learn or get up to speed.
You can find free digital skills support in your area from the National Careers Service on 0800 100 900.
You will have to repay the advance from your future Universal Credit payments, so only ask for what you need.
If you will have little or no money until your first payment, you can request an advance payment from your work coach or by calling the free Universal Credit helpline.
You can request up to a full month’s payment as an advance.
You don’t have to claim a full month’s payment and you should only claim as much as you need to get you through to the first full payment.
If you only claim a part payment but find you need more money, you can make a further claim for the remainder of your first full payment.
Once the first assessment period is over, you can’t claim another advance payment.
You will have to repay this from your future Universal Credit payments over 12 months.
To request an advance, you will need to talk to your work coach, or call the Universal Credit helpline. This can be done when:
You will be asked to explain why you need the advance, provide your bank details and have your identity checked.
You should get a decision the same day and any advance agreed should be paid into your bank in five working days.
If the advance is agreed, your work coach or helpline adviser will explain how much you will get, how much you’ll have to pay back each month and the date when the first payment is due.
The repayments come out of your future monthly Universal Credit payment over 12 months and the first repayment will come out of your first full payment.
Under exceptional circumstances, for example if you can’t afford the repayments or will fall into debt, repayments can be delayed for up to three months.
An advance might be refused if you (or both of you if you’re claiming as a couple):
You can ask for a decision to be reconsidered, but you don’t have a right to appeal.
If you need help with your claim, call the Universal Credit helpline free on:
Telephone: 0800 328 9344
Textphone: 0800 328 1344
If you already have an online account and journal you should call the Universal Credit full service helpline on:
Telephone: 0800 328 5644
Textphone: 0800 328 1344
8am - 6pm, Monday to Friday (closed on bank and public holidays). Calls are free.