What is Universal Credit?
Universal Credit is a government benefit designed to help people with their living costs if they’re on a low income or out of work. It replaces several older benefits and tax credits, combining them into a single monthly payment. Universal Credit is available across the UK and is governed by the Welfare Reform Act 2012, which sets out who can claim and how the system works.
Before you apply, it’s important to understand how Universal Credit works, what it covers, and whether you’re eligible. This knowledge can help you avoid delays or issues with your application. For a more detailed explanation, including who can claim and what support is available, see What is Universal Credit.
Who Can Apply for Universal Credit?
Universal Credit is designed to support people on a low income or out of work in the UK, but not everyone is eligible to apply. To qualify, you must meet certain criteria:
Age: You must be at least 18 years old. In some cases, 16- and 17-year-olds can claim, but only in specific circumstances.
Income and Savings: Universal Credit is means-tested. If you (and your partner, if you have one) have savings over £16,000, you usually won’t be eligible. Your household income and savings will be assessed to determine how much you can get.
Residency: You must live in the UK and have the right to reside here. There are additional rules if you’ve recently arrived in the country.
The official Universal Credit Regulations 2013 set out the full legal requirements for claiming Universal Credit.
If you are sick or disabled, there are special rules that may affect your eligibility and the amount you can receive. For more details, see Getting Universal Credit if You’re Sick or Disabled. The Equality Act 2010 also protects your rights and ensures you are not discriminated against because of a disability.
Before you apply, it’s a good idea to check what benefits you can get to make sure Universal Credit is right for you and to see if you might be eligible for other support.
Information You Need to Apply
When you apply for Universal Credit, you’ll need to provide a range of personal and financial information. Having these details ready can help make your application process smoother and quicker.
Personal details:
You’ll be asked for your National Insurance number, your full address, and details about the people you live with, such as your partner or children. You’ll also need your bank, building society, or credit union account details so payments can be made directly to you.
Housing information:
Be prepared to give details about your housing situation. This includes your landlord’s name and contact information, your tenancy agreement, and how much rent you pay. If you own your home, you’ll need to provide mortgage details.
Income and savings:
Universal Credit is means-tested, so you must declare your income and any savings or investments. This includes earnings from work, benefits you’re already receiving, and any other income such as pensions or maintenance payments. You’ll also need to state how much money you and your partner (if you have one) have in savings or investments. According to the Universal Credit Regulations 2013, savings over £6,000 may affect how much you can get, and having more than £16,000 in savings usually means you won’t qualify.
Identification documents:
You may also need to verify your identity. This could involve providing a passport, driving licence, or other official documents.
Before you start your application, it’s a good idea to gather all these documents and details. This will help you complete your claim accurately and avoid delays in processing your Universal Credit application.
How to Apply for Universal Credit
Applying for Universal Credit is usually done online, as this is the main method recommended by the UK government. Here’s a simple step-by-step guide to help you through the process:
Create an Online Account: To start, you’ll need to set up a Universal Credit online account. This account will be used to complete your application, track progress, and communicate with your work coach.
Complete the Application Form: Once your account is set up, follow the prompts to fill in your details. You’ll need information such as your National Insurance number, details about your income, savings, housing, and household members. Make sure all information is accurate, as Universal Credit is governed by rules set out in the Welfare Reform Act 2012 and supporting regulations.
Submit Your Application: After completing the form, submit your application online. You’ll receive confirmation and guidance on the next steps.
Attend an Interview: Most applicants are required to attend an interview at the Jobcentre Plus. This interview is an important part of the process and helps confirm your identity and discuss your situation. For practical advice on preparing for this, see Interview Tips – Universal Credit.
What Happens Next: After your interview, your application will be processed. You’ll be kept updated through your online account. The Department for Work and Pensions (DWP) aims to make the first payment within five weeks of your claim.
If you do not have access to the internet or find it difficult to apply online, there are alternative ways to apply. For more information, visit If You Can’t Apply Online – Universal Credit.
After You Apply: What to Expect
After you submit your Universal Credit application, it’s important to know what happens next and how to manage your claim effectively.
How and When Payments Are Made
Universal Credit is usually paid once a month directly into your bank, building society, or credit union account. Your first payment typically arrives around five weeks after you apply. For more details about payment schedules, how the amount is calculated, and what to do if you’re struggling while you wait, see How Universal Credit is Paid.
Managing Your Universal Credit Account
Once your claim is active, you’ll need to manage your Universal Credit account online. This includes reporting any changes in your circumstances – such as changes to your income, address, or household. Keeping your information up to date helps ensure you get the correct payments.
If You Have Payment Problems or Face Sanctions
If you experience issues with your payments – such as delays, underpayments, or missing payments – there are steps you can take to resolve them. Visit Payment Problems for guidance on what to do and who to contact.
Sometimes, your payments may be reduced or stopped due to a sanction. If this happens, it’s important to understand your rights and options. Find out more in What to Do if You’ve Been Sanctioned.
Reapplying if Your Claim Ends
If your Universal Credit claim ends – perhaps because your circumstances change or you no longer meet eligibility – you can Reapply for Universal Credit if you need support again in the future.
Moving from Older Benefits to Universal Credit
Many people are moved from older benefits (like Income Support or Housing Benefit) to Universal Credit through a process known as ‘migration.’ If you’re affected, you can learn more about what to expect in Universal Credit Migration. The legal rules for this process are set out in the Universal Credit (Transitional Provisions) Regulations 2014, which explain how existing benefit claims are transferred.
For further support and official guidance, you can also visit the Department for Work and Pensions (DWP), the government department responsible for Universal Credit.
Additional Support and Resources
If you need extra support while applying for or receiving Universal Credit, there are several resources and options available to help you manage your finances and maintain your claim.
Help with housing costs: Universal Credit can include support for your rent or other housing costs. If you’re struggling to pay your rent or worried about falling behind, you can find more information about what help is available on our Help with Housing page.
Managing rent arrears and debt: If you have existing debts or are facing rent arrears, it’s important to seek advice early. Guidance on how Universal Credit can support you, and steps you can take to manage or reduce your debt, is available in our Help with Debt and Rent Arrears on Universal Credit section.
Support for families: If you have children, you may be entitled to additional financial support through Universal Credit. To find out what extra help is available for families, including childcare costs and child elements, visit Help if You Have Children.
Maintaining your claim: After you’ve applied, there are important steps to follow to keep receiving your Universal Credit payments. This includes updating your details, reporting changes in your circumstances, and meeting any agreed commitments. For practical advice on what to do next, see While You’re On Universal Credit.
Staying informed and seeking help when you need it can make a big difference in managing your Universal Credit claim and ensuring you get the support you’re entitled to.
