Welfare Reform

Universal Credit

Universal Credit (UC) 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.

UC will replace the following benefits:

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

What benefits will not be replaced?

  • 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

What makes up the UC?

UC will be 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 UC is calculated are specified in the Universal Credit Regulations.

Where can I find more information?

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