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What is universal credit?

Universal credit is a monthly payment made by the government to help with living costs.

In Scotland, you can choose to have it paid twice a month instead.

If you’re on a low income, or out of work, you may be able to claim universal credit.

Here’s our guide to help you understand how to apply and how much you might get.1

What does universal credit replace?

Universal credit was brought in to replace:

  • child tax credit
  • housing benefit
  • income support
  • working tax credit
  • income-based Jobseeker’s Allowance (JSA)
  • income-related Employment and Support Allowance (ESA)

If you already receive any of these, you won't need to do anything, unless:

  • you need to report a change in your circumstances
  • the Department for Work and Pensions (DWP) gets in touch about moving you to universal credit

How to apply for universal credit

Find out how to apply for universal credit on the GOV.UK website. If you live in Northern Ireland, you'll need to go to nidirect.gov.uk. You’ll also need check you’re eligible to receive universal credit.

To apply, you’ll need an email address and details of the following:

  • bank, building society or credit union account
  • housing costs, such as how much rent you pay
  • income (for example, payslips)
  • savings and any investments (for example, shares)
  • childcare costs - if you’re applying for help with these

You’ll also need proof of identity, such as:

  • driving licence
  • passport
  • debit or credit card

You can't claim universal credit if you're also entitled to the severe disability premium or have been within the last month.

How much is universal credit?

Universal credit payments vary because there’s a standard allowance per household, plus other elements you may, or may not, be eligible for. These include housing, childcare and disability.

The standard allowances are as follows:
Your circumstances Standard allowance:
If you're single and under 25: £292.11 per month
If you're single and 25 or over: £368.74 per month 
If you're part of a couple and both under 25: £458.51 per month for you both 
If you're part of a couple, and either of you is 25 or over: £578.82 per month for you both 
The standard allowances are as follows:
Your circumstances If you're single and under 25: If you're single and under 25:
Standard allowance: £292.11 per month £292.11 per month
Your circumstances If you're single and 25 or over: If you're single and 25 or over:
Standard allowance: £368.74 per month  £368.74 per month 
Your circumstances If you're part of a couple and both under 25: If you're part of a couple and both under 25:
Standard allowance: £458.51 per month for you both  £458.51 per month for you both 
Your circumstances If you're part of a couple, and either of you is 25 or over: If you're part of a couple, and either of you is 25 or over:
Standard allowance: £578.82 per month for you both  £578.82 per month for you both 

Universal credit is paid in arrears, but you can apply for an advance payment if you don’t have enough to live on while you wait.

Do savings affect universal credit?

Your payment may be reduced if you have more than £6,000 in money, savings and investments. If you’re under State Pension age, the amount saved in your pension pot won’t affect how much universal credit you’re entitled to.

More financial help

You might be able to apply for other financial support related to universal credit, including Alternative Payment Arrangements, or a Budgeting Advance.

The GOV.UK website also has details of how to get help with things like:

  • emergency household expenses
  • funeral costs
  • cold weather payments
  • free school meals
  • legal costs

You could also be missing out on other benefits, which you may be entitled to.

Footnotes

1 We’ve made every effort to ensure this article is accurate but things may change. Please check the GOV.UK website for up-to-date information.