What is Universal Credit (UC)?
Universal Credit is a means-tested benefit for people of working age who are on a low income.
It replaces six means-tested benefits:
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Housing Benefit
- Child Tax Credit
- Working Tax Credit.
The above six benefits are also known as legacy benefits.
Universal Credit is paid monthly. (In Scotland, you can choose to have it paid twice a month).
Department for Work and Pensions (DWP) works out how much money you get in two steps:
- It works out what it thinks you should need to live on, based on your household’s circumstances, then
- It takes away some of the income you have coming in.
Already claiming legacy benefits?
You don’t need to do anything if you are already claiming existing legacy benefits and your situation stays the same. If you have had a change of circumstance, see Switching from other benefits
Applies to: England, Scotland, Northern Ireland and Wales
Type of benefit: Means tested
Taxable: No
Administered by: Department for Work and Pensions
Reviewed: February 2022