What is Universal Credit?
In simple terms: Universal Credit (UC) is a monthly payment to help with your living costs. It's for people on low incomes or who are out of work.
Universal Credit replaced 6 older benefits and rolled them into one payment:
The idea was to make the benefits system simpler. Instead of claiming different benefits from different places, you claim one benefit online.
Who Can Claim Universal Credit?
You may be able to claim UC if you:
(16-17 year olds can claim in some circumstances)
(Currently 66 - check your personal State Pension age)
And have the right to claim benefits here
(Savings between £6,000 and £16,000 reduce your payment)
You can claim UC while working if your income is low enough
Important: Couples
If you live with a partner, you must claim UC as a couple. Your partner's income and savings count too. You'll get one combined payment.
How Much Could You Get?
Universal Credit is made up of a standard allowance plus extra amounts depending on your situation. Here are the 2025/2026 rates:
Standard Allowance (Monthly)
Extra Amounts You Might Get
For each child you're responsible for
Help with rent (up to local housing allowance rate)
If health condition limits your work ability
If you care for someone 35+ hours/week
Up to 85% of your childcare costs
How Universal Credit Works
You Apply Online
Create an account at gov.uk/universal-credit. You'll need to verify your identity and provide information about your circumstances.
5-Week Wait
There's a 5-week wait before your first payment. You can ask for an Advance Payment (a loan) if you need money during this time.
Tip: You can get an advance of up to 100% of your expected first payment. It's repaid from future payments over up to 24 months.
Monthly Payments
UC is paid monthly, in arrears, into your bank account. In Scotland, you can choose to be paid twice a month.
Your Work Coach
You'll be assigned a work coach at the Jobcentre. You'll agree a "Claimant Commitment" - what you'll do to find work or increase your hours.
If You Work
UC adjusts automatically. If you earn more, your UC goes down (by 55p for every £1 earned after your work allowance). If you earn less, your UC goes up.
Working While on Universal Credit
Good news: You can work and claim UC at the same time. The amount you get reduces gradually as you earn more - you're always better off working.
Work Allowance
If you have children or a health condition, you can earn some money before your UC is reduced:
After your work allowance, UC reduces by 55p for every £1 you earn (called the "taper rate").
Key Things to Know
- ✓UC is paid monthly into your bank account
- ✓There's a 5-week wait for your first payment (advances available)
- ✓You manage your claim online through your UC journal
- ✓You must report changes in circumstances immediately
- ✓Your payment adjusts automatically when your earnings change
- ✓You can be sanctioned (payment reduced) if you don't meet requirements
Related Guides
Calculate Your Universal Credit
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