Universal Credit

Overview

Universal Credit is a monthly means-tested payment administered by the Department for Work and Pensions (DWP). It is paid to people of working age who are on a low income, out of work, or unable to work. Universal Credit was designed to consolidate six older benefits — income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit, and Housing Benefit — into a single monthly payment. The amount received is made up of a standard allowance and, where applicable, additional elements for children, disability, housing costs, and childcare. The final amount is reduced by earnings above a work allowance (if one applies) at a taper rate, and by certain other income or savings over set thresholds. Claimants can receive Universal Credit across the UK, though Northern Ireland operates its own version administered by the Department for Communities, and claimants in Scotland have some flexibilities in how payments are structured. Individual entitlement and the exact amount payable are determined by the DWP based on a claimant's circumstances in each monthly assessment period. This page references figures and eligibility criteria stated on the primary GOV.UK source at the time of extraction; the authoritative source for any individual claim remains the relevant government department.

Applies in England, Scotland, Wales, Northern Ireland. Administered by DWP. This page is general information; contact DWP for your individual circumstances.

Rates

Eligibility criteria include

• HOUSEHOLD
  If living with a partner, both must claim Universal Credit as a joint household claim, even if the partner is not eligible. How much is received depends on the partner's income and savings. ^[GOV.UK]
• AGE
  If only one partner has reached State Pension age, the couple can still claim Universal Credit. The claim stops when both reach State Pension age. ^[GOV.UK]
• HOUSEHOLD
  Full-time students can claim Universal Credit if: they live with an eligible partner; they are responsible for a child; they have reached State Pension age and live with a partner below State Pension age; or they have received a Migration Notice letter. ^[GOV.UK]
• OTHER
  Students aged 21 or under studying any qualification up to A level or equivalent with no parental support can also claim. ^[GOV.UK]
• INCOME
  Claimant must be on a low income or need help with living costs. Could be out of work, working (including self-employed or part time), or unable to work. ^[GOV.UK]
• RESIDENCE
  Claimant must live in the UK. ^[GOV.UK]
• AGE
  Claimant must be aged 18 or over (with some exceptions for those aged 16 to 17) and under State Pension age. ^[GOV.UK]
• CAPITAL
  Claimant must have £16,000 or less in money, savings and investments. ^[GOV.UK]
• IMMIGRATION
  EU, EEA or Swiss citizens and their families may also need settled or pre-settled status under the EU Settlement Scheme. ^[GOV.UK]
• CAPITAL
  If savings, money and investments are over £6,000, payments are reduced by £4.35 for every £250 between £6,000 and £16,000 (with a further £4.35 taken off for any remaining amount that is not a complete £250). ^[GOV.UK]
• DISABILITY
  The higher disability/health condition monthly amount applies where the condition is severe and unlikely to change, or the claimant is nearing the end of life. The lower amount applies where the condition is assessed as less severe or may improve. ^[GOV.UK]
• DISABILITY
  If both partners have limited capability for work and work-related activity (LCWRA), only one extra monthly amount is paid (the higher amount if one is eligible for it). ^[GOV.UK]
• OTHER
  The carer's element requires the claimant to provide care for at least 35 hours a week to someone who receives a qualifying disability benefit. If both partners care for the same person, only one carer's element is paid. ^[GOV.UK]
• OTHER
  Claimants receiving LCWRA cannot also receive the carer's element. ^[GOV.UK]
• OTHER
  The disabled child higher element applies to a child receiving the highest rate of DLA care component, the higher rate of PIP daily living, or who is blind or severely sight impaired. The lower element applies to any other rate of DLA or PIP. ^[GOV.UK]
• OTHER
  Childcare costs element requires the claimant to be working; for couples, both must be working unless one cannot work due to disability or health condition. Childcare must be from a registered provider. ^[GOV.UK]
• DISABILITY
  Full-time students with disabilities or health conditions can claim if assessed as having limited capability for work before starting their course and entitled to PIP, DLA, Attendance Allowance, Armed Forces Independence Payment, ADP, CDP, PADP, or SADLA. ^[GOV.UK]
• AGE
  16 or 17 year olds can claim if they have a health condition or disability with medical evidence, are caring for someone with a health or disability-related benefit, are nearing end of life, are responsible for a child, live with an eligible partner with a child, are pregnant expecting in 11 weeks, have had a baby in the last 15 weeks, or have no parental support. ^[GOV.UK]

Sources