Universal credit

Universal credit

Who can get it, how much you can get and how to apply

Universal credit is a monthly benefit to support those on low incomes (or no income) with living and housing costs. The pandemic has caused millions of people to struggle financially - and with the rising cost of living, this number is likely to increase. Yet it's believed that 500,000+ aren't claiming universal credit when they could. Have a read of this guide and use our Benefits Calculator to check how much you could get.

This guide covers England, Wales and Scotland. Universal credit follows the same guidelines in England and Wales and there are some small differences for claimants in Scotland, which we outline. However, the system works differently in Northern Ireland. 

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What is universal credit?

Universal credit is a monthly payment – paid in arrears – to people who are unemployed, off work due to sickness, or on a low income. It's designed to help you meet your basic living costs. You could work for an employer, or be self-employed, and still apply for universal credit – don't think that universal credit is just for those who are out of work.

For those making a first-time claim, you'll go straight on to universal credit. Anyone still in the old system and claiming a legacy benefits will eventually be switched over to universal credit too through a process of 'managed migration'. This process was temporarily paused due to the coronavirus pandemic, but is expected to be completed by March 2025.

Below we'll explain exactly how universal credit works. But if you simply want to quickly check what you might be entitled to, see our 10-minute Benefits Calculator.

Universal credit is replacing these six benefits: 

  • Income support. This is paid to people who are not expected to look for work – for example, carers or lone parents with children under the age of five.

  • Income-based jobseeker's allowance (JSA). You can get this if you're looking for work and your household is on a low income. It's paid for as long as you show you are trying to find a job. (Note that this is a separate benefit to contribution-based or "new style" jobseeker's allowance.)

  • Income-related employment and support allowance (ESA). This is paid if you are sick/disabled, your household is on a low income and you are unable to work, or have limited capacity to work. You will need to pass a 'capability for work' assessment.

  • Housing benefit. Housing benefit is help for those on a low income who struggle to pay their rent. It can't however be used to help with mortgage costs.

  • Child tax credit. This is paid to anyone with children aged 16 or under, and anyone, whether working or not, can apply. You can continue to get this benefit while your child is aged 17, 18 and 19, provided the child is in education or training.

  • Working tax credit. You can only make a claim for Working Tax Credit if you already get Child Tax Credit. Again, you can continue to get this benefit while your child is aged 17, 18 and 19, provided the child is in education or training.

If you're currently claiming one of these benefits, you'll eventually be moved over to universal credit in a process called 'managed migration'. However, you can choose to move over at any point - and some people will find they are better off on universal credit than these legacy benefits - but there's no guarantee. 

Our Should I switch to universal credit? guide includes a calculator to help you check whether you'll get more or less on universal credit, and looks at the pros & cons of switching.

Can I get universal credit?

As mentioned above, if you're unemployed, have been made redundant, are off work due to sickness, or are on a low income, you could be entitled to universal credit to help you meet your basic living costs. Those who are in work, for instance if you're employed or self-employed, are also able to apply.

You might be able to claim universal credit if:

  • You're out of work or on a low income or have been made redundant.
  • You're aged 18 or over (there are some exceptions if you're 16 or 17).
  • You or your partner are under state pension age.
  • You have less than £16,000 in savings – if you have a partner, their savings count too (if you're self-employed, some savings may not count if they're for business purposes, for example, tax. For full info on what counts, see below).
  • You live in the UK.
  • You currently receive any of the benefits that universal credit is replacing – for example, working tax credits, child tax credit, income support, housing benefit – and your circumstances change.

Does universal credit operate the same way in England, Wales, Scotland and Northern Ireland? 

England, Wales and Scotland follow the same guidelines. Scotland has some extra flexibility when it comes to receiving the payments, known as 'Scottish choices'. This means you can choose to be paid monthly or twice monthly, and if you get an extra housing payment you can choose to get it in your bank account or paid directly to your landlord.

In Northern Ireland, it's a slightly different system and it's normally paid twice a month, though you can choose to be paid monthly. Find out more on the NIdirect website.

Quick questions
  • You can still claim, but only if you have savings of up to £16,000.

    Universal credit's a means-tested benefit. This means that the amount of income and savings you have will affect your eligibility and how much you might be entitled to, for example, you'll get less universal credit if you have savings worth over £6,000 or earn enough money to cover your basic living costs. If you've savings of £16,000 or more, you won't be eligible for universal credit.

    If you live with your partner, you must make a joint claim. Your partner's income and savings will be taken into account, even if they aren't eligible for universal credit.

  • If you are or become self-employed, you may be eligible for universal credit. You will need to meet the general universal credit eligibility criteria.

    Being "gainfully self-employed" means being self-employed in a way where you'll be able to become financially independent. You will need to show that:

    • Your self-employment is your main job or source of income
    • You're getting regular work from self-employment
    • Your work is "organised and developed"
    • You expect to make a profit

    If you pass the test of being considered as gainfully self-employed, you'll be supported towards the goal of becoming financially independent. You won't have to look for other work. You will have to report your earnings to the Department for Work and Pensions every month.

  • Yes. But you have to make the choice to move. Eventually everyone will move over to universal credit. It's predicted that the 'managed migration' process will be complete in March 2025. 

    Managed migration will eventually see everyone moved over to universal credit – not just those who make new claims or have a change in circumstances.

    You won't lose out if you're moved over in the managed migration. If you have any drop in benefit payments, you'll get a 'transitional top-up payment'. The Department for Work and Pensions told us these payments will continue until you've a change in circumstances – for example, if a partner moves out and you have to reapply as a single claimant.

    You will ONLY get the transitional top-up payment if you are part of the managed migration – not if you chose to move on to universal credit, or had to move due to a change in circumstance. 

    If you're claiming a legacy benefit and have a change in circumstances – for example, you've moved in with a partner – you may get migrated over to universal credit.

    The Government has a list of examples for what counts as a change of circumstances, and benefits specialist Entitledto has a list of circumstances which also gives an overview of how your benefits will be affected.

    If you don't have a change of circumstance, you will stay on the legacy benefit until you're moved over as part of the migration. Do NOT try to beat the system – you have to report changes straightaway or you risk losing your benefits altogether.

  • Universal credit was designed to behave just like a paying salaried job, which means instead of getting the benefit weekly, or fortnightly, it is paid in monthly arrears, with the first payment coming after five weeks. This has meant that many people have struggled in those initial weeks. If this is you, there's help you can get.
    Unlike other means-tested benefits in the past, there is no "set amount" you can earn before you stop getting the benefit. The Government first looks at what you need to live on, given your circumstances, then it looks at what you have (income, assets, other benefits etc) and then it awards you the difference. 

    So while it allows you to work and still receive support, the amount you get is adjusted in line with your (and your partner's, if you have one) earnings.

    Another big difference is you can't get it if you – or your partner – have savings or capital over £16,000. See more about the effect of savings.

    Other difficulties with the universal credit system include: 
    • Childcare paid in arrears which forces claimants to pay £100s upfront. 

    • Lower payments for some compared with legacy benefits. To see if you'll be better off switching, use our 10-min Benefits Calculator.

    • Monthly payments cause budgeting headaches for some. As a result the Government is piloting more frequent payments.
  • Yes. The amount you get is based on your income (and your partner's income, if you have one) and the 'minimum income floor', a minimum amount which the Government assumes you'll earn. It's calculated on the national minimum wage for someone in your age group multiplied by the number of hours you're expected to be available for work. 

    If you earn less than the minimum income floor, you'll usually have to find additional work to top up your income, as universal credit won't make up the difference.

    If you earn more than the minimum income floor, your universal credit payments will be based on your actual earnings.

    The minimum income floor doesn't apply to everybody. You're exempt from it if:

    • You look after a child under the age of three
    • You're pregnant or gave birth in the past 15 weeks
    • You're caring for a severely disabled person
    • You've been assessed as having limited capacity for work, or limited capacity for work-related activity
    • You're in full-time education
    • You're temporarily too sick to work

    How is the minimum income floor calculated? 

    Your expected working hours are multiplied by the hourly national living wage or national minimum wage for your age group, and then calculated as a monthly salary. For example, if you're aged 23 or over and in employment, you must be paid a legal minimum of £8.91 an hour (for the 2021/22 tax year) – though it'll be less than this if you're younger.

    This weekly wage is then multiplied by 52 and divided by 12 to get an equivalent monthly salary. So someone who was expected to work a full 35-hour week would be expected to earn:

    £1,351.53 a month if aged 23 or over. This is based on a minimum hourly salary of £8.91.
    £1,267.93 a month if aged 21-22. Based on a minimum hourly salary of £8.36.
    £994.93 a month if aged 18-20. Based on a minimum hourly salary of £6.56.
    £700.07 a month if under 18. Based on a minimum hourly salary of £4.62.

    The Department for Work and Pensions then deducts tax and national insurance to work out your minimum income floor. This is deducted at an amount "the Secretary of State deems appropriate", so can differ from case to case. 

    While the tax and national insurance make it hard to state exact minimum income floors, the monthly wages above can be taken as a good approximation of the level of minimum income floor that will apply to you in your age group (assuming you'd be expected to work full time). 

  • If you contribute to a personal or workplace pension the money you put into the pension will be disregarded when it comes to calculating your income - and therefore your universal credit allowance. 

    For example: if you earn £800 a month, and contribute £32 into your workplace pension, your income for universal credit purposes will be: £768, (£800 - £32).

    Any contributions your employer makes to your workplace pension will be completely ignored for benefits purposes. 

  • Yes, although universal credit is only available for those under state pension age, if you're part of a 'mixed age' couple (one of you is younger than state pension age), you will still be able to claim universal credit. 

    Remember: the amount of universal credit you receive is based on your household income. If your partner is claiming their state pension, these payments will be counted as 'income' when it comes to working out how much universal credit you'll get. 

I'm on working tax credit – would I be better off switching to universal credit? 

Before you think of switching, you must know that if you switch from a legacy benefit to universal credit you CAN'T switch back.

Your personal mix of legacy benefits may very well be worth less than the amount available via universal credit, however there are different rules around savings, earnings, eligibility and capital that makes generalisations about who is better off difficult. 

As rough guidelines, those who are better off are typically those who pay private rents in expensive cities. Those who might be worse off are those with disabilities. 

It's quick and free to get a good idea of if you'll be better off. Our benefits calculator has an inbuilt comparison tool that clearly shows what you're currently getting and what you might get if you made the switch. We also cover the pros & cons of switching in our Should I switch to universal credit? guide. 

How much could I get?

One of the underlying principles of universal credit is that it's a payment based on need. It helps if you think about universal credit like a set of scales: on one side, you get your standard payment along with extra payments based on what you need to meet your basic costs; and on the other side, these payments are reduced if you have increased savings, earnings, or get other benefits (more on reductions in the chapter below). 

As a result, two people the same age and earning similar amounts could easily be entitled to vastly different amounts based on extra help the Government thinks each needs.

But as a starting point there's a standard allowance, based on age and whether you're single or in a couple. 

Here's a table showing the standard allowance as of October 2021:

Universal credit standard allowance

Your circumstances

Monthly allowance October 2021 

Single and under 25


Single and 25 or over


In a couple and both under 25


In a couple and either of you is 25 or over


What extra payments could I get?

In addition, universal credit offers some people extra help. This is for:

  • Housing costs – for rent, but mortgage-holders can apply for a 'support for mortgage interest' loan
  • If you care for children
  • If you have a sickness or disability that prevents you from working
  • If you have other caring responsibilities

Housing element for rent 

There is not standard amount for housing. Instead, the amount you get is set by your age, circumstances and the 'local housing allowance' rate in your area. For the full ins and outs of the local housing allowance, see What is the local housing allowance?

For example, the amount for two-bedroom accommodation in the London borough of Ealing is £339.45/week or about £1,360/month. The amount for a two-bedroom accommodation in the Isle of Scilly is £143.84/week or about £575/month. Want to see what you could get, check your area's rates here.

Help with mortgage interest payments

If you qualify for universal credit, after nine months you can apply for support for mortgage interest (SMI) on up to £200,000 of your mortgage, based on a standard rate of interest – currently 0.6%. The money is paid directly to your lender. This is a loan and not a benefit – this means it must be repaid when you die or sell your home. For more information, see the Gov.uk website.

If you are having difficulty meeting your mortgage payments, you should urgently speak to your lender and see what support they can offer you.

More help can be found in our Mortgage arrears guide.

Help towards caring for children

If you're looking after a child under the age of 16, you can apply for an extra amount to help with the costs. If you have two children, you'll get extra for your second child. If you have three children you might get an extra payment, but it depends when they were born.

For your first child:

  • £282.50/month (born before 6 April 2017)
  • £237.08/month (born on or after 6 April 2017)

For your second child (and any other eligible children):

  • £237.08/month per child

If you have three or more children, you only get an extra amount for third or subsequent children if any of the following are true:

  • If your children were born before 6 April 2017, and 
  • You were already claiming for three or more children before 6 April 2017

If you have a disabled or severely disabled child:

  • £128.89/month or £402.41/month (for severely disabled child)

Help for a disability or health condition

If you can't work because of sickness or disability, you may be able to claim the 'limited capability for work and work-related activity' element of universal credit.

If you have limited capability for work and work-related activity:

  • £343.63/month

If you have limited capability for work and you started your health-related universal credit claim before 3 April 2017:

  • £128.89/month

Did you know? If you have paid enough national insurance contributions, you may also be able to claim new-style employment and support allowance (ESA) of up to about £456/month. See our Universal Credit and Benefits Calculator to see how much you could get.

Help for caring for a severely disabled person

If you're a carer for someone in your household for at least 35 hours a week who is severely disabled, you may be able to get the 'carer's element' as part of your monthly universal credit payment.

The carer's element is:

  • £163.73/month

Important: If you and someone else in your household care for the same person, you can't both get the carer's element. You'll have to decide which of you will claim it. If you're getting the separate carer's allowance benefit you can continue to get it, if you continue to be eligible.

Help with council tax

If you qualify for universal credit it doesn't always mean you can get help with your council tax, but you can apply to your council for a "council tax reduction". This is a long-standing discount of up to 100% off bills for those on benefits or a low income. It doesn't matter if you own your own home or rent, or whether you're employed or not. All can apply. Yet what you get depends on:

  • Where you live (each council runs its own scheme)
  • Your circumstances (for example, income, number of children, benefits, residency status)
  • Your income, including savings, pensions and your partner's income
  • If children live with you
  • If other adults live with you
For more information see the discounts section of our Council tax bands guide.
Quick questions
  • When you apply for universal credit, you must fill in whether you've a disability, illness or health condition which means you can't work. This includes physical and mental health issues. If you say yes, you will most likely need to attend a 'work capability assessment' (WCA). 

    Mostly, this will happen around the 29th day of your claim, but there are certain instances where you may be referred to one on the first day – for example, if you're terminally ill or you're not legally allowed to work.

    At the WCA, you'll be asked questions about your condition and how it affects your daily life, and how it might vary over time.

    Once you've had your assessment, a report will be sent to the Department for Work and Pensions and used by a case worker (along with other evidence you've provided) to make a decision on whether you're:

    • Fit to work
    • Have limited capacity for work
    • Have limited capacity for work and work-related activity

    If you're deemed fit enough, you'll need to look for work that's suitable for your condition, and be prepared to work to keep getting universal credit.

    If you've limited capacity for work, you won't have to look for it straightaway, but you'll need to prepare for working in future, for example by writing a CV. If this is you, you can get an extra £128.89 a month in some circumstances.

    If you're considered to have limited capacity for work and work-related activity, you'll not be expected to look for or prepare for work. If this is you, you could get an extra £343.63 a month.

  • You can use Childcare Vouchers and universal credit together but you CAN'T get universal credit at the same time as claiming under the Tax-Free Childcare scheme.

    Universal credit can help by paying back up to 85% of your childcare costs (to a maximum of £646 for one child, and £1,108 for two or more children). You can make a claim through your account, but be aware you need to provide receipts and will only be reimbursed after your childcare has taken place.

    You can use universal credit with Childcare Vouchers, but as you'll only be able to claim on the costs not covered by the vouchers, you may be better off not using the vouchers at all, as universal credit will likely contribute more to your costs. 

    For example, if you've monthly childcare costs of £1,000 and you pay £500 with vouchers, you can only claim back up to 85% of the remaining £500 through universal credit: £425.

    In contrast, if you had childcare costs of £1,000 and only used universal credit to pay for it, you could claim back up to £850, so twice as much.

    If you were claiming Childcare Vouchers before they were stopped, you can continue to claim them even if you're claiming universal credit.

    Tax-Free Childcare is a Government-backed scheme, launched in 2017. You can switch between Tax-Free Childcare and universal credit if one is better for your circumstances. 

    The Low Incomes Tax Reform Group offers more guidance on how this could work for you.

  • The local housing allowance (LHA) is how the Government determines how much housing support you're entitled to.

    There will be a LHA rate set based on rental prices in your area and the number of rooms you need based on who lives in your household. 

    If you are single, don't have any dependent children and are aged under 35, you will only be able to get the 'shared accommodation rate' of LHA. This won't apply and you will be entitled to the one bedroom rate if:

    • You are under 22 and are a care leaver, or
    • You are receiving the daily living component of personal independence payment, the middle or high care rate of disability living allowance, or armed forces independence payment, or
    • You are over 25 and have been living in a hostel for people who are homeless for three months or more

    Otherwise, you will be entitled to one bedroom for each of the following:

    • You (and your partner if you have one)
    • Any other person over 16, as long as they aren't living with you as your tenant
    • Two children under 16 of the same gender
    • Two children under 10
    • Any other child under 16

    For both the 'shared accommodation rate' and regular rate, you can find your LHA for your area using the Government tool.

Why your amount might be reduced 

Just as you can get awarded extra payments depending on your extra needs, your payments can also be reduced if you have extra savings, earnings or payments from other benefits. 

It's like a set of scales: on one side, you get awarded an amount based on what you need, while on the other, this amount can go down depending on what you have.

Here's what can reduce your payments:  

Income can affect the amount you'll get 

One of the principles of universal credit is the more you have, the less you're likely to get. So earnings from a job can affect the amount you can get. This may be from a job or self-employed work. Currently, for every £1 you earn (after tax and pension contributions), your universal credit payment will be reduced by 55p.

If you have children or are disabled, you can earn up to a particular amount before your payment starts to be reduced. This 'work allowance' is currently £335 a month if you get help towards paying your housing costs, or £557 a month if you don't.

More than £6,000 in savings, you'll get less, more than £16,000 you'll get nowt

  • Less than £6,000 and it's disregarded. If you have less than £6,000 in savings you'll have to declare it, but it won't affect your universal credit entitlement.

  • Having between £6,001 and £16,000 will affect your universal credit amount. It is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250, regardless of whether it does or not. So if you have £6,300 in a savings account, £6,000 of it will be ignored and the other £300 will be treated as giving you a monthly income of £8.70. 

  • More than £16,000 and you will not be eligible. Any savings more than £16,000, you'll stop getting any universal credit.

Redundancy payouts are treated as savings. So if you have a lump sum, and it takes you over the £6,000 mark it can impact how much your monthly payment is. And if it's over £16,000, like those with regular savings, you will be ineligible. 

Have you been rejected, or had your universal credit award reduced due to savings? If you've since used them up, reapply

  • Been rejected because your savings (or you and your partner's combined savings) were above £16,000? Reapply immediately when your savings dip below that amount. This is because anyone with savings of less than £16,000 will start being eligible for universal credit (as long as you fit the other eligibility criteria). But the closer to £16,000 you are, the less universal credit you'll get.

    You will have to make a fresh application – any previous claims are not kept open on the system. Here's what you'll need to do: 

    - First, apply online.
    The quickest way to claim universal credit is online. If you're in a couple living in the same household, you will need to make a joint claim. If you can't claim online, you can call the free universal credit helpline on 0800 328 5644.

    - Then you'll need to attend an interview. After a successful online claim, you have to visit the Jobcentre for an interview with your work coach. 

    It's worth noting that the person assessing your claim may look into why and how quickly your savings have fallen. They may ask for evidence that you've spent them legitimately and you haven't knowingly reduced your savings just to get or increase universal credit. You may even be asked for receipts as evidence (to show you've not hidden or temporarily shifted money to another person's account to try to get more universal credit), particularly if it was a big, sudden drop. 
  • Were you getting a reduced universal credit payment due to having £6,000-£16,000 in savings? If your savings balance has since dropped, you can now claim more. This is because if you have more than £6,000 and up to £16,000 in savings you'll still get some universal credit – with the amount reducing the closer you get to the £16,000 threshold. 

    If your savings have dropped it's up to you to make sure you disclose this to get more. This is what you'll need to do:

    - Simply update your savings amount via your online journal. But do it as soon as possible to make sure you'll get the full amount you're entitled to – once you've done so you should see the amount you get change when you're next due a payment. If you can't access this online, call the universal credit helpline on 0800 328 5644.

Don't delay: It's vital to make your fresh claim (if you're newly eligible) or to update your online journal as soon as your savings dip as the sooner you act, the sooner you'll be paid – or see your award increase.

Generally speaking, you won't be able to backdate a fresh claim without a good reason (such as an illness), and even then, it'll only be up to one month. And it's unlikely (though we are checking) that if you're late updating your reduced savings, you'll be able to backdate at all. 

For every £1 you get from other benefits (or a pension) your amount will reduce 

For every £1 of other income you receive from other benefits or a private pension, your universal credit payment will reduce by £1. Some benefits are protected such as child benefit, disability living allowance, personal independence payment and war pensions.

If you get more than £20,000 in total in benefits

If your household gets more than £20,000 in benefits and you live outside of London, you might be subject to the benefits cap. This is the total amount of benefits (some are excluded) your household can receive in a year. So while it technically doesn't reduce your amount, it's a ceiling amount that you can't exceed.

In London, this is up to £23,000 for couples and families (£15,410 for single people without children), while outside of London, it's up to £20,000 (£13,400 for single people without children). Of course, the easiest way to work out how much you'll get is to use our Universal Credit and Benefits Calculator, which will also inform you what other benefits you may be eligible for.

I'll get paid early due to a bank holiday, does it mean I could get less in universal credit?

Not anymore. But it used to mean you could lose some (or all) of your payment. This was due to the fact that if you were paid by your employer earlier than normal, you could end up having two monthly salaries fall into one universal credit assessment period. But thanks to a recent change to the system, it won't anymore.

What's changed? 

Universal credit has been improved with a new automatic process to ensure that even if your employer pays you early because of a bank holiday, the system will now automatically identify if you'll have a second monthly salary payment in one benefit assessment period.

The Department for Work and Pensions (DWP) will be able to move your second payment forward to the next assessment period in the system, ensuring your universal credit payment won't fluctuate from one month to the next due to the system thinking you've had increased wages in one month. 

Why was this a problem?

Before this change, if you were paid earlier than normal it caused the DWP's system to think you'd had a bumper month as it registered two sets of salaries coming in over one month. This counted against you when it came to your universal credit payouts, as the more you earn, the less you get.

Quick questions on circumstances that can reduce your payment
  • The following benefits will be taken into account:

    • Bereavement allowance
    • Carer's allowance
    • Employment and support allowance (new style)
    • Incapacity benefit
    • Industrial injuries disablement benefit
    • Jobseeker's allowance (new style)
    • Maternity allowance

    What doesn't count?

    • Child benefit
    • Disability living allowance
    • Income from boarders and lodgers
    • Maintenance payments
    • Personal independence payment
  • These will count as savings or capital...

    • Regular savings in your bank account
    • Fixed-term savings
    • ISAs – including LISAs, stocks & shares ISAs
    • If you've taken your private pension as a lump sum before state pension age
    • Redundancy pay 
    • Stocks or shares
    • Property you don't live in

    These won't count as savings or capital...

    • A pension pot that hasn't yet been drawn down
    • Pension income – this counts as income
    • Junior ISAs – money you have already given to your children


  • If you or your partner have savings or capital of between £6,000 and £16,000, the first £6,000 is ignored. The rest is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250.


    You and your partner each have £4,000 in separate savings accounts, so combined savings of £8,000. The first £6,000 is ignored. The remaining £2,000 is counted as giving you a monthly income of £34.80

    £2,000 ÷ £250 = 8

    8 × £4.35 = £34.80

    £34.80 will be taken off your monthly universal credit payment.

  • Yes – if you received any or all of the five Self-Employment Income Support Scheme (SEISS) grants, these will be classed as income, meaning the amount of universal credit you receive might decrease.

    However, you will NOT have to pay back previous months of universal credit because of a SEISS payment. 

  • No. The Department for Work and Pensions only counts two people as being in a couple if they live in the same household and are:

    • Married

    • Civil partners

    • Living together as if married

      If you are in a couple and you meet the criteria above, you and your partner will need to make a joint claim for universal credit. This means the Government will assess what you need as a couple against what you have as a couple and award you accordingly.

  • If you switch to universal credit from any of the following, your current benefit will stop and you will NOT be able to switch back:

    • Child tax credit
    • Housing benefit
    • Income-based jobseeker's allowance
    • Income-related employment and support allowance
    • Income support
    • Working tax credit

    However, at the end of July 2020, the Department for Work and Pensions introduced an extra payment for people claiming income-based jobseeker's allowance, income-related employment and support allowance or income support who choose to move over to universal credit. 

    If you currently claim any of these benefits and switch over to universal credit, you will now receive a new, additional payment, worth up to two weeks of your old benefit. 

    The one-time 'run-on' payment does not need to be paid back, and will be paid automatically to eligible claimants when they claim universal credit for the first time. It will not affect the amount of universal credit you receive.

    Housing benefit claimants already receive a run-on payment. 

    Important: If you currently receive working tax credit or child tax credit, and you switch to universal credit, you will NOT receive a run-on payment. 

    Not sure whether you'll be better off switching? Our free Benefits Calculator will show you how much better - or worse - off you'll be if you swtich. We also cover the pros & cons of switching in our Should I switch to universal credit? guide. 

  • Claiming universal credit due to coronavirus but now going back to work? Tell the Department for Work and Pensions (DWP).

    If you or your partner are now returning to work or have found new employment, you need to tell the DWP. You can do so by updating the details in your online universal credit journal. Bear in mind the following:

    • As your income increases, your universal credit payment will reduce.
    • It will keep reducing until you're earning enough to no longer claim universal credit.
    • Tell the DWP that you're now working but don't just cancel your claim. If you just cancel, you risk missing out on your final payment. For more, see 'When should I cancel my claim?' below.
    • If your earnings decrease again, you can claim universal credit again.
    • Remember it's not just YOUR income that's taken into account, it's your household income. If your partner is going back to work (and it doesn't matter if you're married or not, as long as you live together), this will affect your universal credit claim.

    Here's an example to help.

    Imagine your assessment period runs from 5 August to 4 September and you're paid your universal credit on 11 September. You've just got a new job and started work on 20 August, BUT you won't actually get paid until 30 September.

    If you contact the DWP and cancel your universal credit claim on 20 August (instead of just telling it that you're now working), you won't get universal credit for ANY of the period from 5 August to 4 September. The DWP doesn't make part-month payments.

    As you've no earnings in that period up to 4 September, you will still be entitled to your usual universal credit, paid to you on 11 September. It isn't until you've been paid by your employer on 30 September that your universal credit for 5 September to 4 October will be reduced or stopped.

Self-employed and have savings put aside to pay tax? It needn't decrease the universal credit you get

Saving around a third of your profits to pay tax is normally sensible. But if you're now looking at claiming universal credit, you might think that any business savings in your personal account will affect your eligibility for this support. We've checked with the Department for Work and Pensions, which confirmed that while it'd expect business savings to be in a business account, nevertheless "if someone has money in their personal account to be used for business purposes, it won't be counted towards their capital".

However, it did warn that you may need to prove the cash is for business purposes. So if this applies to you, make it clear in your application that the savings are business savings, and put a note of it in your online universal credit 'journal', where you record any changes to your circumstances. It should then be discounted from the calculations.

How do I apply?

There is a two-step process to getting your payments:

1. First you need to claim

The quickest way to claim universal credit is online

If you are part of a couple and living in the same household, you will need to make a joint claim for universal credit. You will receive a single monthly payment for your whole household.

If you have no access to digital services or have accessibility issues, you can call the free universal credit helpline on: 0800 328 5644. 

You can also contact the helpline on 0800 328 5644 if you run into difficulties, or if you need to make a claim in an alternative format such as Braille, large print or audio CD. For Welsh language applications, call 0800 012 1888.

You'll be asked a few questions to ensure you meet the basic criteria before being taken to the main claim page. Need help? Citizens Advice also assists universal credit applicants. You can call their "help to claim service" 0800 144 8 444. 

What information will I need? 

As you have to make your claim in one online session (you can't save and come back to it), you should ensure you have all the information you'll need before starting. At the very least, this will include your:

  • Contact details
  • Bank account details
  • National insurance number

Depending on what's relevant to you, you may also need details of your:

  • Current employment
  • Monthly earnings (have a copy of your payslip to hand)
  • Housing costs
  • Tenancy agreement
  • Other income, savings and any other benefits you or your partner receive

Although it goes without saying, make sure you only give correct information as you'll have to provide proof of anything you say in your application. Once you've entered all the information, you'll be shown an estimate of the amount of universal credit you'll get each month. You'll also have to complete a declaration that all the information you've provided is correct.

2. Then you need to attend an interview 

After a successful online claim, you'd have to visit the Jobcentre and have an interview with your work coach if you want to claim universal credit.

You'll be told what information you need to take to the interview, but it'll definitely include physical evidence of details you provided in your claim (for example, your address, how much rent you pay, how much you earn at work).

Citizens Advice has a comprehensive guide on how to prepare for your interview and examples of documents you may need to take with you.

At this interview you'll have to sign a 'claimant commitment'. This is an agreement that you will commit to certain conditions, such as looking for a set amount of work hours.

When will I be paid? 

Your payment date is based on the date you applied, usually five weeks after. For example: Sarah applies for universal credit on 1 September. Her first assessment period will last until 30 September. She's paid on 7 October and will be paid on the 7th of every month after that.

  • England and Wales: You're paid once a month, but in Scotland and Northern Ireland there are some differences.
  • Scotland: Here there are some extra flexibility when it comes to receiving the payments, known as 'Scottish choices'. This means you can choose to be paid monthly or fortnightly, and if you get an extra housing payment you can choose to get it in your bank account or paid directly to your landlord.
  • Northern Ireland: It's a slightly different system and it's normally paid twice a month, though you can choose to be paid monthly. Find out more on the NIdirect website.

Struggling to wait five weeks until your first payment?

You won't get your first payment until about five weeks after making your claim. If you don't have enough money to live on while you wait for your first payment, you can request an advance payment. 

Here's how it works: 

  • You need to make the request via your online universal credit account, or through your work coach. 
  • You can ask to receive all or part of your first payment.
  • It's interest-free but works like a loan, and you'll repay it through your regular universal credit payments, which will be lower until you pay it back. 
  • You can choose over how many months you want to pay it back, but it must be fully repaid within 12 months.
  • You'll usually be told the same day if you'll get an advance, and you'll typically have the money within three working days.


From April 2021 new claimants will be able to spread universal credit advances repayments over a 24-month period and the maximum rate of deductions from universal credit will be reduced for all to 25%. 

Quick questions on how to apply
  • If you need help to pay your bills or cover other costs while you wait for your first universal credit payment, you can apply to get an advance.

    The most you can get as an advance is the amount of your first estimated payment. It is important here to remember that this is a loan and must be paid back. It will usually be collected by reducing your future universal credit payments. Also, the guidelines say you may not be allowed an advance if you have any final earnings or redundancy payments you can be living on while waiting for your universal credit award.

  • Don't panic. We are hearing this is happening to many frustrated would-be claimants. It will take time; the Department for Work and Pensions is overloaded. But it's told us that universal credit staff will see that your form is incomplete and call you. Expect a 'withheld number' or 0800 number.

    You can also call the helpline (0800 328 5644) – it is VERY busy but persevere, we are hearing of people getting through. You can also make a note in your online universal credit journal. 

  • British Sign Language (BSL) users can now access universal credit using the video relay service on the Gov.uk website. This allows BSL users to contact the Department for Work and Pensions via an interpreter, from a smart phone (excluding Blackberry or Windows phones), computer or tablet.

    The service is available 8am to 4pm Monday to Friday, and you don't need to book in advance. Simply click this link, turning on your microphone and front-facing camera and you'll be connected to a BSL interpreter via video. Explain what you'd like to discuss and the interpreter will telephone the service you require and relay the conversation between you and the other person.

    The video relay service is provided by SignVideo, which has full instructions on how to use it. You can access it via the Gov.uk link above or download the free SignVideo app on desktop or smartphone (iOS and Android).

What to do if you think your payment is wrong

Whether you think your initial entitlement is wrong, or if your entitlement is changed after you start claiming, firstly, contact the universal credit helpline on 0800 328 5644. If a mistake has been made, it should be rectified while you're on the phone.

If this isn't the case, you can appeal against the decision by asking for a 'mandatory reconsideration'. You must do this within one month of the date of your initial entitlement decision. See more info on making a mandatory reconsideration. If you do decide to appeal, make sure you gather supporting evidence before you do so.

I am still struggling – is there any extra help I can get?

If you're already receiving universal credit and you're struggling, there's some extra help you can apply for depending on your circumstances. This list provides 10 things to look into if you need extra financial help, from budgeting advances, to help with energy bills. 

1. Budgeting advance 

You can get a budgeting advance if you need help with emergency household costs, for example if you need to replace a cooker. Like an advance payment, you'll pay it back through your universal credit payments, which will be lower until it's paid off. If you're struggling to buy food, you might be able to get a budgeting advance to pay for food – speak to your work coach or call the universal credit helpline. 

There are certain criteria you need to meet to qualify for a budgeting advance.

  • You must have been receiving universal credit for six months or more – unless you need the money to get a job or stay in work.

  • You must have earned less than £2,600 in the past six months (or £3,600 if you're part of a couple), and have paid off any previous budgeting advances that you've had.

The smallest amount you can borrow is £100. The maximum amount depends on your circumstances:

  • Up to £348 if you're single
  • Up to £464 if you're a couple
  • Up to £812 if you've children

2. Hardship payments 

If you're in financial hardship because you've been sanctioned, you can request a hardship payment. This is usually a loan that you can only get if you're struggling to meet your basic needs or those of your children (such as accommodation, heating, food and hygiene costs).

You must be 18 or over to apply, and you need to prove that you've tried to get the money from somewhere else, and that you only spend your money on essentials. To apply for this, contact the universal credit helpline on 0800 328 5644.

3. Help if you're at risk of rental or mortgage arrears 

Falling into rent arrears can lead to your landlord taking you to court and potentially to eviction, so it's not an issue to be taken lightly. If you think you're at risk of arrears, you can ask for:

  • Your universal credit more than once a month, and 
  • For your landlord to be paid directly

If you've a mortgage

If you're at risk of falling behind with your mortgage payments due to universal credit, speak to your lender immediately. It should talk you through what your options are, and explain what support it can offer – for example, you might temporarily be able to switch to an interest-only mortgage.

4. Need more in-depth advice or practical support? 

If you need extra advice or support or have a specific question that isn't answered here, many other organisations and charities offer detailed guidance and advice. Here are just a few that you may find useful, and please let us know in our forum discussion thread if you find any others that help you.

  • Turn2Us: Help with benefits, searching for grants and accessing support services.
  • Entitledto: As well as providing free benefits calculators, it has tons of guidance on benefits.
  • Citizens Advice: Guidance for all aspects of universal credit.
  • Gingerbread: Primarily aimed at single parent families.
  • Christians Against Poverty: Help with debt, finding work and free courses to get control of your finances.

5. Cheap broadband and mobile data

There are some cheap broadband and sim plans that are tailored to those receiving universal credit, such as BT Basic. While some of these may come with limitations, it’s always worth seeing what’s out there to see if you can save money on your current bills. Check out our Cheap broadband and tv guide for the latest deals.

6. Free prescriptions, dental treatments and eye tests

If you're on universal credit and your earnings were under £435 in the last assessment period, you’re eligible for free NHS prescriptions, free dental care and free eye tests. This earnings threshold rises to £935 for certain claimants, so check the NHS website for the full eligibility criteria. Recipients of certain other benefits will qualify too.

If you meet any of these criteria and you’ve spent money on any of these things in the last three months, you can claim it back providing you have the necessary receipts.

7. London travel discount

If you’re on universal credit and you’ve been unemployed for at least 13 weeks, you may be entitled to a Jobcentre Plus Travel Discount card, which gets you 50% off London pay as you go fares on buses, trains, the tube and more. See the TFL website for the full breakdown of the discount and the eligibility criteria.

8. Free school meals

If you're on universal credit, your child – whether you are their parent or guardian or not – may qualify for free school meals. Recipients of certain other benefits are also eligible.

For the full list, and to check if your child qualifies for free school meals, enter your postcode at Gov.uk.

Note: This isn't to be confused with 'universal infant free school meals', available to all schoolchildren (in state-funded schools) from reception to year two. In Scotland, all children in primary one to four are entitled to universal infant free school meals, and from January 2022, children in primary five will also be included.

Quick questions

  • If your child is in year three or above, they will typically be able to get free school meals if you meet the criteria in the following two steps: 

    Step 1. You are claiming one of these benefits:

    • Child tax credit 
    • The 'guaranteed element' of pension credit
    • Income-based jobseeker's allowance
    • Income-related employment and support allowance
    • Income support
    • Support under Part VI of the Immigration and Asylum Act 1999
    • Universal credit 
    • Working tax credit/working tax credit run-on (1) 

    (1) Working tax credit is only taken into account in Scotland and Northern Ireland. In England and Wales you can't get free school meals if you get working tax credit – you can only qualify with the 'working tax credit run-on'. (This is the payment you receive for four more weeks after you stop qualifying for working tax credit.)

    Step 2. You are earning below a certain amount (these are different depending on where you live): 


    • If you receive universal credit, you can earn up to £7,400/year (in total earnings). 
    • If you receive child tax credit (but not working tax credit), you can earn up to £16,190/year.


    • If you receive universal credit, you can earn up to £625/month. 
    • If you receive child tax credit (but not working tax credit), you can earn up to £16,105/year.
    • If you receive working tax credit AND child tax credit, you can earn up to £7,500/year. 

    Northern Ireland

    • If you receive universal credit, you can earn up to £14,000/year. 
    • If you receive child tax credit or working tax credit, you can earn up to £16,190/year.


    • If you receive universal credit, you can earn up to £7,400/year.
    • If you receive child tax credit (but not working tax credit), you can earn up to £16,190/year.
  • Free school meals are run by the Department for Education and administered via councils. You need to register via your council, then you and your child's school will be notified of your application.

    You must wait until you've had your first universal credit payment before applying for free school meals.

    For people in England there is a free checker, which should link through to your council's free school meals registration page. We tested this and often were only sent to the council's main homepage – if this is the case, search 'free school meals' in your council's search bar. 

    You will need your name, date of birth and home address, details about your qualifying benefit claim – you'll be told what evidence you need to submit – and your child's/children's details and school name(s). Here's how to apply in ScotlandNorthern Ireland and Wales.

9. Free school uniforms

If you qualify for free school meals, you may be able to get up to £200 a year towards school uniform. For more information including the full criteria, check out Can I get help towards my child's school uniform costs?

10. Live in Wales? You could get extra help with your energy bills this winter

The Welsh government recently introduced a new 'Winter Fuel Support Scheme' for those on means-tested benefits. Eligible households can claim a one-off £100 payment to put towards their energy bills.

The scheme is open to households where at least one person claims working-age benefits such as: universal credit, employment and support allowance, and job-seekers allowance at some point between 1 December 2021 and 31 January 2022.

If you're eligible, you'll be notified in writing by your council. If you think you're eligible and haven't received a letter, you can also submit a claim by contacting your local authority between 13 December 2021 and 2 February 2022. 

If you don't live in Wales, you may still be able to get help with your energy bills. Our 'Housing and energy grants' guide has details on what extra help is available. 

This is the latest incarnation of this guide. Please give us feedback, suggest improvements and share your tips in the universal credit forum thread.

Thanks to Wendy Alcock of Entitledto for fact-checking the guide.

Spotted out of date info/broken links? Email: brokenlink@moneysavingexpert.com