Universal Credit
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