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Universal Credit (UC) - What is Universal Credit (UC)?

Find out more about Universal Credit.

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 existing means-tested benefits:

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

The above six benefits are also known as legacy benefits.

Universal Credit is intended to be simpler than the current system of benefits and tax credits.

Universal Credit is paid on a monthly basis. Entitlement is worked out by comparing your basic financial needs that the government says you need to live on with your financial resources.

Universal Credit is being introduced gradually. Whether you can claim depends on your personal circumstances.

You don’t need to do anything if you are already claiming existing legacy benefits and your situation stays the same. You will be told by the Department of Work and Pensions (DWP) when you have to claim Universal Credit
 

Applies to: England, Scotland, Northern Ireland and Wales


Type  of benefit: Means tested

Taxable: No

Administered by: Department for Work and Pensions

 

Updated: December 2018

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