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

Universal Credit is a means-tested benefit for people of working age who are on a low income.

It is payable whether or not you're in work. 

It can include amounts for housing, the costs of raising children, disability, or being a carer. Which of these you will get depends on your circumstances.

It replaces six means-tested benefits:

• Income Support
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Housing Benefit (England, Scotland and Wales) / Housing Benefit (Northern Ireland)
• 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. Outside of Scotland, you can ask for it to be paid twice monthly, but this might be refused. In Northern Ireland you are paid twice per month, but you can request it once a month.

Department for Work and Pensions (DWP) works out how much money you get in two steps:

1. It works out what it thinks you should need to live on, based on your household’s circumstances, then
2. It takes away some of the income you have coming in from the amount of Universal Credit it gives you.

Already claiming legacy benefits?

People getting legacy benefits are having their claims ended and are being invited to apply for Universal Credit. This process began in 2021 and is called ‘managed migration’.

You can continue to get your current benefit until you receive your managed Migration Notice, as long as your circumstances stay the same. If you have had a change of circumstance, see Switching from other benefits.

All legacy benefits will end in 2026 and Universal Credit will be the main working age benefit. If you get a letter telling you your existing benefits are ending and you need to claim Universal Credit, it is important to make a claim on time to continue getting financial support. Read more information in our guide Universal Credit Migration Notice.

Applies to: England, Scotland, Northern Ireland and Wales

Type of benefit: Means-tested benefit

Taxable: No

Administered by: Department for Work and Pensions (DWP)