Before you apply:
What you need to know
Setting up and managing a claim for Universal Credit (UC) can be difficult. This information will help you get ready.
Setting up a claim can be difficult. For example, figuring out how to make an online claim and preparing to wait five weeks for your first payment to come through.
It can also be hard because the process can change depending on your situation (for example, when you enter a job or move house). Changes can make it harder to track what you need to do and keep your claim moving..
This information will help you set up your claim and manage it, even if your situation changes over time.
“The pandemic has shown us that anyone can end up on Universal Credit, there is no shame in applying for benefits, it is a stepping stone on to something else”
UC:Us Team
Are you eligible for Universal Credit?
To make a claim for Universal Credit, you (and your partner, if applicable) must be:
✓ aged 18 or over
✓ under pension age (66)
✓ not in education (there are some exceptions - speak to a welfare rights adviser)
✓ a resident in Northern Ireland, England, Wales or Scotland
✓ accept a claimant commitment
✓ meet the financial conditions (you don’t have more than £16,000 in savings and your income is not too high)
In some circumstances you can claim if you are 16 or 17, in full-time employment or a full-time student.
Work and financial requirements
BE AWARE: You may apply and depending on your circumstances find that you are not entitled to UC. This is important to bear in mind if you have requested and received an advance payment while you wait on an entitlement decision, which will need to be repaid. This is why it’s best to get independent advice before making a claim.
You can claim Universal Credit if you are in or out of work. It does not matter how many hours you are working. To be eligible you (and your partner if you have one):
must not have combined capital of more than £16,000; and
Can’t have earnings or other income (including some benefits and pensions) above a certain level
When you enter work, your UC amount gradually reduces, depending on how much you earn. It is also affected by the taper rate, which is currently 55%. This means that when you enter work your UC award is reduced by 55p for every £1 you earn.
Some people are able to earn a certain amount from work before their UC is affected. This is known as the ‘work allowance’ and it:
is awarded to you if you have a child or if you (or your partner) have limited capability for work.
depends on whether you have the housing costs element included in your UC award. If you have the housing costs element included in your UC award the monthly work allowance is £793. If your UC award does not include the housing costs element the monthly work allowance is £1013.
applies to you if you are self-employed and claiming Universal Credit.
If you are not well enough to work, submit a sickline from your GP as soon as possible. This lowers your risk of getting a sanction for failing to meet any work-related terms in your claimant commitment.
Have you been asked to move to Universal Credit?
More people are going to be asked to move to UC from their current benefits. In this situation, you will receive a letter asking you to make the move. This is called a ‘migration notice.’ The letter will provide a deadline and it should be 3 months after the date the notice was sent to you.
If your letter doesn’t have a deadline
If your letter does not have a deadline, you don’t have to claim UC unless you want to. It’s important to remember that you are not able to go back to your old benefits after you claim. You should seek independent advice to check if you’ll be better off on UC.
If you don’t think you can claim by the migration deadline you can:
- Ask DfC/DWP to extend it. You can only ask for this before the original deadline in the letter comes to pass. If DfC/DWP agree, they’ll send you a new deadline.
- If the deadline has passed, you can still get transitional protection if you claim UC up to a month after the deadline. The end of the fourth month is called the ‘final deadline.’
- You can still claim UC after the final deadline, but you won’t get the transitional protection.
- A welfare rights adviser can help you move onto UC.
If your letter does have a deadline
If you receive a letter with a deadline, you should claim UC before the cut off date. Your old benefits will stop after the deadline. If you claim UC up until the deadline, you might be eligible to receive support to ensure you are no worse off on UC. This is called ‘transitional protection.’
This means if you’d get less on UC than your old benefits, you’ll get extra money to make up the difference. This money will be reduced over time, and you will eventually get what UC provides.
Transitional protection also means that you may be able to get UC when you would usually be able to. If you:
Are a full-time student who wouldn’t usually get UC, you can usually get it until the end of your course.
If you receive tax credits and have over £16,000 in savings, you can get UC for up to a year.
UC differences in specific groups
Use the dropdown boxes below to read the differences that apply to you:
‘Prior to starting on Universal Credit I was saving and got as much as £8,000. Because I had this money, Universal Credit calculated that I was not entitled to the full rent for my property. And so therefore I was £100 short a month. I had to put that over from my savings. So now my savings are a lot less for when I retire … If you’re saving up for something in particular, say carpets or furniture, get it. Get it before your savings are going to be affected.’
Universal Credit is paid in arrears
Universal Credit payments are made twice monthly (not weekly) in arrears
If you are claiming in Northern Ireland, you will be paid twice monthly in arrears.
If you are claiming in England, Wales or Scotland, you will be paid monthly in arrears when you first set up your claim.
You can ask your work coach to set up your claim so you receive twice-monthly payments if you are struggling to manage on the monthly payment. This is usually called an ‘alternative payment arrangement’.
You must wait 5 weeks for your first payment of Universal Credit
You will receive your first payment within 7 days of the end of your first monthly assessment period. This means that you must wait 5 weeks for your first payment (some UC:Us members have had to wait longer). Getting through this initial stage can be tough and decisions you make at this stage can have lasting effects.
Two week run ons are available if you’re moving to UC from another benefit
If you were getting Housing Benefit immediately before you claimed Universal Credit, you will continue to receive your Housing Benefit in the usual way for an extra two weeks after you claim Universal Credit.
If a change in your circumstances means you are no longer entitled to Jobseeker’s Allowance you may make a claim for Universal Credit. You will continue to receive Jobseeker's Allowance for an extra two weeks after you make your claim for Universal Credit. Your Jobseeker's Allowance will then stop.
If a change in your circumstances means you are no longer entitled to Employment and Support Allowance you may make a claim for Universal Credit. You will continue to receive Employment and Support Allowance for an extra two weeks after you make your claim for Universal Credit.
Financial support available
Advance payments
Universal Credit applicants are offered an "Advance payment" to bridge the gap. The Advance payment is a repayable loan available to all UC claimants. Taking the advance means you are taking a loan and will need to pay back the debt. Get advice before you accept this payment.
If you do choose to take an advance payment
- Remember it's a loan and repayments will be taken out of your payment each month.
- You don't have to take the full advance amount that you are entitled to. If you do need to get an advance, try to work out the very minimum you will need to get you through that first period.
Always check what other financial support is available first
Universal Credit Contingency Fund
In Northern Ireland, you can apply for a grant from the Universal Credit Contingency Fund. You are eligible if the five week wait will lead to a financial crisis. However, if you received a “discretionary support grant” in the last 12 months, you cannot access this fund.
Find out more and apply for the fund: www.nidirect.gov.uk/articles/extra-financial-support
Charitable sources of support
You can access foodbank vouchers via organisations like the Trussell Trust, or from your local community centre. You should never be ashamed to use a foodbank. It is not your fault that there is limited financial support during the waiting period.
If you live in Northern Ireland you can ring the ‘Make the Call’ team and they can advise on alternative support.
"I was a teacher and I have used foodbanks and receive Universal Credit. People from all walks of life can enter financial difficulty. I hate the thought of people not receiving support because of the stigma. It's ok to seek out financial support"
"There is no shame in putting food on the table and ensuring your children and/or yourself are fed."
UC:Us Team
Here are videos relating to two claimants experience of advance payments, along with some advice for NI Law Centre
Information on backdating claims
- if you could not have reasonably been expected to have made the claim any earlier.
- If an illness or disability meant that you applied for UC later than you would have otherwise planned there is a possibility that your claim could be backdated by one month.
Claims for UC cannot normally be backdated, unless there are exceptional circumstances (see below). In some cases you may be able to get a claim backdated (for up to one month). For example if:
Mention these kinds of things when you apply.
Universal Credit is managed online
You must make and manage your claim online - there are no paper forms. To make your claim online, you will need:
an email address.
to create a username and password (this has to take a certain format).
to keep your sign-on details in a safe place.
regular access to the internet (including for communication with UC staff).
In certain circumstances it is possible to make a claim via telephone or via a home visit. To make a phone claim or arrange a home visit, you will need to ring:
In Northern Ireland, the Northern Ireland Universal Credit helpline on 0800 012 1331
in England, Scotland or Wales, contact: 0800 328 5644.
Once registered as a phone claim you will not be able to manage or maintain your claim online and UC staff will update the claimant journal on your behalf.
You will have to sign a claimant commitment
Think carefully about your claimant commitment!
Only agree to undertake activities that you are able to do. If you are unable to carry out an activity that is agreed in your claimant commitment, you could get a sanction.
Because of recent changes, you could be sanctioned even if you’re in work and claiming UC. This is due to the government’s decision to ‘strengthen’ the way sanctions are applied and automate parts of the system.
Tell your Work Coach in advance, if you won’t be able to fulfil any part of your claimant commitment. It can lessen your chance of being sanctioned.
You can’t get a UC payment until you sign a claimant commitment. The claimant commitment outlines all of the steps, if any, that you will take to get into employment.
This commitment will reflect your personal circumstances. You will be put in one of four different activity groups. For example, if you have a child under three you won’t be expected to spend as many hours providing evidence that you’ve carried out activities to help you find work, as someone with a child over three. If you don’t feel that your claimant commitment reflects your personal circumstances do seek independent welfare rights advice.
If you are a couple who are both claiming UC, you both must accept a claimant commitment in order to receive payment. If one member of the couple refuses to sign the claimant commitment, you should be given a cooling off period to consider the implications of this.
The claimant commitment will outline all of the steps, if any, that you will take to get into employment.
This commitment will reflect your personal circumstances. You will be put in one of four different activity groups. For example, if you have a child under three you won’t be expected to spend as many hours providing evidence that you’ve carried out activities to help you find work, as someone with a child over three.
If you are living with illness or impairments do discuss these with your work coach and seek amendments to your claimant commitment, as appropriate.
Remember, if you don’t feel that your claimant commitment reflects your personal circumstances do seek independent welfare rights advice.
If you don’t carry out the activities listed in your claimant commitment, you can be sanctioned. This means that your Standard Allowance of UC will be paused for a period of time.
It is important to develop an open and honest relationship with your Work Coach and inform them if you have any barriers to work when you first meet them. These barriers should be taken into consideration when your claimant commitment is being drawn up and agreed.
If you do not agree with your claimant commitment you can request that it is reviewed by another member of staff in the ‘Jobs and Benefits Office’ (or ‘Jobcentre Plus’ in England, Wales and Scotland).
Paying your housing costs
Claiming in Northern Ireland? You should carefully check your journal to see if housing costs have gone to you or directly to your landlord.
Northern Ireland
If you are claiming in Northern Ireland your housing costs should automatically be paid to your landlord from your UC claim. If you are entitled to Universal Credit housing costs, this amount is usually paid to your landlord each month. However some tenants can have the housing costs paid to them, if they meet certain criteria.
The amount of Universal Credit a tenant receives depends on their individual circumstances. The exact amount is calculated every month and may change. This is known as the assessment period. The Universal Credit housing costs amount for a tenant is paid per calendar month.
If you are renting a property from the Northern Ireland Housing Executive (NIHE) or a Housing Association your Universal Credit housing costs will automatically be paid directly to them.If you are renting a property from a Private Landlord, Universal Credit needs to have your landlords Bank Account details to be able to pay your Universal Credit housing costs to them.
'Make sure you communicate with your landlord regularly to double check your rent has been paid'
UC:Us Team
It is important that Universal Credit has your landlord’s contact details to be able to contact them, to get their bank details so that housing cost payments can be made directly to them. If landlords do not want to provide this information by phone, they can do so by requesting a direct payment to be set up. Information about tenants cannot be given to landlords because of data protection laws which control how personal information is used by organisations, businesses or the government.
Universal Credit does not tell a Private Landlord when a tenant makes a claim.
There are sometimes problems with the system for housing costs. Welfare rights advisers are finding that even if claimants have requested payments for housing costs to go straight to their landlord, the first couple of payments often go to the claimant. Listen to one claimant’s experience in the following video.
We are also finding that claimants sometimes do not realise that their rent is not being paid to their landlord leaving them in rent arrears.
Scotland
If you are claiming in Scotland, after receiving your first UC payment you can choose to pay your rent by yourself or have it paid directly to your landlord.
England or Wales
If you are claiming in England or Wales, your UC payment will include the money for your rent. This means you will need to arrange to pay your rent yourself. This includes any shortfall not covered by the housing element of your UC payment. Remember to check if you are entitled to a Discretionary Housing Payment.
You can ask for the housing element of your UC payment to be paid directly to your landlord if you are struggling to budget. This is sometimes called a ‘managed payment to landlord’, an ‘alternative payment arrangement’, or a ‘direct rent payment’.
What if…