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Universal Credit

(UC)

Universal Credit is a monthly means-tested benefit paid by the DWP that replaces six legacy benefits: Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Housing Benefit, Child Tax Credit, and Working Tax Credit. It is available to people who are on a low income, out of work, or unable to work, and adjusts automatically as earnings change.

Universal Credit is assessed monthly based on a household's income, capital, and circumstances. The standard allowance is increased by "elements" for children, housing costs, disability, and caring responsibilities. Claimants must accept a Claimant Commitment setting out what steps they will take to find or increase work. Failure to meet these conditions can result in a sanction.

A five-week wait applies between making a claim and receiving the first payment, though an advance payment can be requested. Universal Credit is administered through an online journal and claimants must report changes in circumstances promptly.

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