Universal Credit

To claim Universal Credit you must be:

• Aged 18 or over (some 16–17 year olds qualify in specific circumstances)
• Under State Pension age
• In England, Scotland, or Wales (Northern Ireland has a separate system)
• On a low income or out of work
• Have savings and capital below £16,000 (savings between £6,000 and £16,000 reduce your award)
• A British citizen, or have the right to claim public funds as part of your immigration status

You can claim whether you are employed, self-employed, or not working. If you have a partner, you make a joint claim and both your incomes and savings are taken into account.

Legacy benefits: If you currently receive Tax Credits, Housing Benefit, income-based JSA, income-related ESA, or Income Support, you will eventually be moved onto Universal Credit as part of the managed migration programme. You should not voluntarily switch from legacy benefits without checking whether you will be better or worse off — use a benefits calculator first.

Universal Credit is built up from different elements depending on your situation. The main elements for 2024–25 are:

• Standard allowance: £311.68/month (single, under 25) or £393.45/month (single, 25 or over)
• Child element: £333.33/month for first child (born before April 2017), £287.92/month for subsequent children
• Disabled child addition: £156.11/month (lower rate) or £487.58/month (higher rate)
• Childcare element: up to 85% of eligible childcare costs (up to £1,014.63/month for one child)
• Limited capability for work element: £156.11/month (LCWRA — limited capability for work and work-related activity: £416.19/month)
• Housing cost element: based on your Local Housing Allowance or eligible service charges if renting social housing
• Carer element: £198.31/month if you provide at least 35 hours of care per week

These elements are added together and then reduced by a taper rate of 55p per pound earned above your work allowance (£404/month if no housing element; £673/month if you have a housing element). Unearned income such as other benefits reduces your UC pound for pound.

Use the government's official benefits calculator or MoneySavingExpert's UC calculator to get a personalised estimate before claiming.

Most people claim Universal Credit online at gov.uk/apply-universal-credit. The process involves:

1. Creating a Universal Credit account — you will need an email address, a UK phone number, and documents to verify your identity (usually a passport or driving licence plus a bank statement).
2. Completing the online claim form — this asks about your household, housing costs, health, employment, and earnings. You have 28 days to complete it once started.
3. Attending a first appointment at your local Jobcentre Plus (or by phone) to confirm your details and agree your Claimant Commitment — the obligations you must meet to receive UC.
4. Verification checks — the DWP will verify your bank details and identity. If your identity cannot be verified online, you will need to attend an appointment in person.

If you cannot claim online, you can call the Universal Credit helpline on 0800 328 5644 (free from most phones). Assistance is also available at Jobcentre Plus offices and from Citizens Advice's Help to Claim service.

The five-week wait: Your first assessment period starts on the day you claim, and your first payment is not made until five weeks later. If you cannot afford to wait, ask for an Advance Payment during your first appointment — you can receive up to 100% of your estimated first monthly payment and repay it over 24 months from future UC payments.

As a UC claimant you are placed in one of four conditionality groups depending on your circumstances:

• No work-related requirements — if you have a severe disability, are a carer, or have a very young child
• Work-focused interview only — for carers and parents of young children
• Work preparation — if you have limited capability for work
• All work-related requirements — if you are able to work and not in one of the above groups

If you are in the 'all work-related requirements' group, you must attend Jobcentre appointments, actively look for work, accept any reasonable job offer, and meet the requirements of your Claimant Commitment. Failing to meet these requirements without good reason can result in a sanction — a temporary reduction of your UC award.

Sanction periods range from one week to three months for lower-level failures, and up to three months for higher-level failures (such as refusing a job offer). Sanctions can be challenged — see our guide to Benefit Sanctions for more detail.

Self-employed people can claim Universal Credit, but the rules are more complex than for employees. Key points:

• You must report your earnings monthly, including a profit and loss calculation based on actual income and expenses in the assessment period.
• After an initial 12-month start-up period, the DWP will apply a Minimum Income Floor (MIF) — this assumes you earn at least the equivalent of 35 hours per week at the National Minimum Wage, even if you actually earned less. This can significantly reduce your UC award.
• The MIF was suspended during the Covid-19 pandemic but has since been reinstated. It can be challenged in some circumstances (for example, if your earnings are lower because of illness or a genuine business downturn).
• You will need to provide evidence of your self-employment, including your HMRC registration and business accounts or records.

Citizens Advice and Self Employment UK offer specialist support for self-employed people navigating Universal Credit.