Universal Credit: what you need to know

Confused about Universal Credit? Find out all you need to know about the government benefit for people out of work or on a low income.

What is Universal Credit?

Universal Credit (UC) is an all-in-one government benefit to help with living costs.

It's a single monthly payment that can be claimed by those who are in or out of work and have a low income. For working parents, it also allows you to claim back some of your childcare costs.

Universal Credit is replacing the following benefits:

• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Child Tax Credit
• Working Tax Credit
• Housing Benefit

If you are claiming one or more of these benefits, you don't need to do anything, unless your circumstances change, or you receive a 'Migration Notice' letter. If you do receive this letter, you must move to Universal Credit within three months.

Can I get Universal Credit?

Universal Credit is for people who need help with their living expenses. You may be eligible if:

• you're out of work
• you're working, but have a lower income (including self-employed or part time)
• you're unable to work (for example, because of a health condition

You must also:

• live in the UK
• be 18 or over (but under state pension age)
• have no more than £16,000 in money, savings or investments

There are some exceptions to this, for example parents aged 16-17 are also eligible. See the government website for the full eligibility criteria.

If you live with a partner, you must make a joint UC claim, even if one of you is not eligible.

How much Universal Credit will I get?

The following figures are correct for 2023 and early 2024. From April 2024, Universal Credit rates will increase by 6.7%. Download this PDF from the government to see how much each part of Universal Credit will increase by.

Exactly how much you'll get depends on a range of things, including your income and your family circumstances.

The standard allowance is:

• £292.11 a month for single people under 25
• £368.74 a month for single people over 25
• £458.51 a month for couples under 25
• £578.82 a month for couples where at least one person is over 25

Extra payments for children

If you have children living with you, you'll get extra money until they're 16 (or 19 if they're in eligible full-time education). You'll only get extra money for your first and second child, unless your children were born before 6 April 2017.

The amount you will get is:

• £315.00 a month for your first child if thy were born before 6 April 2017
• £269.58 a month for your first child if they were born on or after 6 April 2017
• £269.58 a month for your second child and any other eligible children

You'll also get an extra amount if any of your children are disabled. No matter how many children you have, you'll get:

• £146.31 a month if your child is disabled
• £456.89 a month if your child is severely disabled

Childcare costs

If you're working, you can claim back up to 85% of your childcare costs. If you live with a partner, you both need to be either in work, or unable to work due to a health condition.

As long as you're using a registered childcare provider, you could claim up to:

• £950.92 a month for one child
• £1,630.15 a month for two or more children

You'll need to pay for the childcare up front, then claim the money back from the government.

Housing costs

If you're eligible for Universal Credit, you can get help with paying:

• rent to a private landlord
• rent and service charges if you rent from a housing association or local authority
• service charges if you or your partner own your house

Exactly how much you will get will depend on your circumstances, and where in the country you live. Learn more about housing help on the government website.

Other extra help

You can also get higher Universal Credit payments if you have a disability or health condition, or look after someone who does.

• Use a benefits calculator on the GOV.UK website to estimate all your entitlements including Universal Credit.

How Universal Credit is paid

When you claim Universal Credit for the first time, or switch from other benefits, you'll usually have to wait about five weeks before your first payment. However, you can apply for an advance payment to tide you over. This must be paid back and is worth a maximum of your first estimated payment.

Universal Credit is paid in the following ways:

• It will be paid monthly into a bank, building society or credit union account of your choice. (If you live in Scotland, you may choose to be paid every two weeks instead.)
• If you get help with your rent, this will be included in your monthly payment – you’ll then pay your landlord directly.
• If you live with your partner and you are both eligible, you will get one monthly joint payment.

If you find it difficult to manage a single monthly payment, you can apply for an Alternative Payment Arrangement (APA). This could involve being paid every two weeks, or having your rent paid directly to your landlord.

Working and claiming Universal Credit

There are no limits on how many hours a week you can work if you’re claiming Universal Credit. Instead, the amount you get will gradually reduce as you earn more, so you won’t lose all your benefits at once.

For every £1 you or your partner earns, your UC payments will reduce by 55p.

If you are responsible for a child (or have a disability), you will get a 'work allowance'. This is the amount of money you can earn before your payments will start going down. If you get help with housing costs, you can earn £379 before your UC payments start to reduce. If you don't get help with housing costs, this increases to £631.

Your UC payment may be affected by how often you get paid. For example, if you're paid every two weeks, there may be some months where you receive three wage packets. If you receive too much or too little UC overall, you can report it in your account.

Where to find more information

If you think you could be eligible for Universal Credit, you can apply online here.

Find a list of the information you’ll need to provide on the government website.

If you need help with your claim, you can contact the Universal Credit Helpline free on 0800 328 5644 between 8am - 6pm, Monday to Friday.

For free and confidential benefits advice, visit the Citizens Advice website.

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Related links

Financial support for single parents

CHAT: Benefits and financial assistance

Tax-free childcare: what you need to know