Universal Credit

Universal Credit is a single benefit that is replacing a range of benefits for working age people. It is aimed at making work pay and will be paid monthly directly to claimants like a wage.

Benefits replaced by Universal Credit

Universal Credit will eventually replace the following benefits for new applicants:

  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Housing Benefit
  • Income related Jobseekers' Allowance
  • Income related Employment Support Allowance

From April 2024, the Department for Work and Pensions (DWP) is writing to some people who receive these benefits to let them know that they need to claim Universal Credit instead. 

Find out more about the move to Universal Credit.

Benefits that won't be replaced

Universal Credit will not replace:

  • Council Tax Reduction
  • Contribution based Jobseekers Allowance
  • Contribution based Employment and Support Allowance<
  • Child Benefit
  • Carers Allowance
  • Maternity Allowance
  • Industrial Injuries Disablement Benefit
  • Statutory Sick, Maternity, Paternity and Adoption Pay
  • Maternity Grants/Funeral and Cold Weather Payments

How Universal Credit works

Universal Credit is made up of a standard allowance and other elements such as: 

  • An amount for responsibility for children and young persons.
  • An amount for housing.

Claimants will receive a monthly payment direct into a bank account. This will include any amount paid for housing costs.

Full details relating to how Universal Credit is calculated are specified in the Universal Credit Regulations.

More information

Visit GOV.UK to get more information about Universal Credit.