A means-tested credit paid to those of working age on low income either in or out of work –elements payable for children, child care, carers, those fit or unfit for work and with rent to pay.
It replaces 6 existing older means tested benefits –these are Income Based Jobseeker’s Allowance, Income Based Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Housing Benefit. If you are already receiving any of the above benefits and your circumstances change, we recommend that you call our helpline for advice before considering a claim for Universal Credit; as claiming could mean reduced or lost benefit income.
Any income or capital will affect the amount of Universal Credit you receive. If you have capital of £16,000 or over you will not be entitled to Universal Credit. The first £6,000 of capital is ignored –capital between £6,000 and £16,000 will affect the amount you receive.
Universal Credit pays amounts for Housing Costs (rent, mortgage), caring, sickness, children (including child disability) and childcare.Universal Credit is paid monthly in arrears and claimed online through the government website.www.gov.uk/apply-universal-credit.