What is Universal Credit?
Universal Credit will at some stage replace the following benefits:
- Child tax credit
- Housing benefit
- Working tax credit
- Income support
- Income-related employment and support allowance
- Income-based jobseekers allowance
Universal Credit will not replace:
- Attendance allowance
- Bereavement benefits
- Carer’s allowance
- Child benefit
- Council tax benefit
- Disability living allowance
- Maternity allowance
- Contributory employment and support allowance
- Contributory jobseeker’s allowance
- Industrial injuries disablement benefit
- Pension credit
- Personal independence payment
- Statutory maternity pay
- Statutory sick pay
- War pensions
How will it work?
Universal Credit will be paid in one monthly payment to a household, which may consist of a single person, a couple or a family. It consists of one basic element and five other elements, for which claimants need to qualify.
Universal Credit will be paid to people who do not have a job and people who are in low-paid work to top up their earnings. The amount of Universal Credit will reduce as working hours and earnings increase.
The age-related standard allowance is the basic benefit awarded. It will be lower for under-25s. If you are in a couple, you will be assessed as a unit.
The other elements are:
- Child Element
- Disabled Child Addition
- Childcare Costs Element
- Carer Element
- Limited Capability for Work Element
- Housing Costs Element