It replaces six previous means-tested benefits and tax credits:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Housing Benefit
- Child Tax Credit
- Working Tax Credit
The aim of Universal Credit is to simplify the benefits system and incentivize work by:
- Providing a single monthly payment that combines multiple benefits into one
- Tapering off payments gradually as earnings increase, so people are better off working
- Paying benefits to one member of a household rather than individual claimants
- Making payments directly to claimants rather than landlords (in most cases)
To be eligible for Universal Credit, you must be aged 18 or over, under the State Pension age, and living in the UK. How much you get depends on your circumstances, such as income, housing costs, disabilities etc. Payments can be reduced if you have capital/savings over £16,000.
Universal Credit has faced criticisms including long wait times for first payments, issues with the online application system, and problems with incorrect or delayed payments. However, the government continues to roll out Universal Credit across the UK with the goal of full transition by 2024.
Universal Credit?