Universal Credit explained

If you’re not receiving any of the legacy benefits and you want to make a new claim then you should claim Universal Credit.

Be aware that Council Tax Reduction which can help you to pay Council Tax isn’t included in Universal Credit and you need to claim for it separately.

See GOV.UK – Apply for Universal Credit online

See Council Tax support if you’re on a low income or receive Universal Credit

When you make a claim for Universal Credit your legacy benefits will stop and you will instead begin to receive Universal Credit.

Certain changes might mean that to access support you need to make a claim for Universal Credit. This is because you won’t be able to access support by making a new claim for a legacy benefit because that benefit has been replaced, you will instead need to claim support through Universal Credit.

For example if you move to a new borough and need support to pay your rent you won’t be able to make a new claim for Housing Benefit. Instead if you need support to pay your rent you will need to claim the Housing Element of Universal Credit. Making a claim for Universal Credit means any other legacy benefits that you receive will end and you will migrate to Universal Credit.

Sometimes if you’re receiving legacy benefits you might be able to claim Universal Credit but you can choose not to. You might choose not to claim Universal Credit and to remain on legacy benefits if it means you’re better off financially. If you’re not sure whether to claim Universal Credit we recommend checking whether you will be better off before you make a Universal Credit claim. For more information, see GOV.UK – Check if you’re better off on Universal Credit before you apply.

When it is your turn to claim Universal Credit the DWP will write to you and advise you to claim Universal Credit. The letter that they send to you is called a managed migration letter.

If you receive a managed migration letter you need to make a claim for Universal Credit as your legacy benefits will stop. You will not automatically move onto Universal Credit. The letter that you receive will tell you your deadline to claim Universal Credit. The deadline is usually three months from the date of the letter.

You should follow the steps in the letter to ensure that you don’t lose out on any benefit. Following the steps in the letter ensures that the amount of benefits that you receive is protected and will not go down when you move on to Universal Credit.

When the DWP will write to you depends on the benefits that you currently receive.

Most people make their claim for Universal Credit online.

If you need extra help the DWP have set up a helpline for those that have received a managed migration notice, see GOV.UK – Move to Universal Credit if you get a Migration Notice letter.

You will need to budget carefully to make sure you have enough money to pay your rent while you wait for your first payment, which is paid monthly in arrears. Your first payment can take up to 5 weeks, or longer if you haven’t provided all the information that’s needed for your claim. If you’re worried about this, see if you can put some small amounts of money aside now.

You might be able to get an advance on your first Universal Credit payment, but think carefully before you ask for this as it has to be paid back and the repayments might leave you short.

If you were claiming housing benefit at the time you moved over to Universal Credit, you can usually get an extra 2 weeks housing benefit to help you to ensure that you don’t fall seriously into arrears.

You must give exact details of what your housing costs (rent and service charges) are. If you don’t do this, it will delay your payment. The Department for Work and Pensions (DWP) usually ask your landlord to confirm what you have told them, so you need to be careful not to get this wrong or you might not get paid.

It’s unlikely they will just accept what your landlord says, they will want you to explain the difference and this can all take time to sort out.

There are some exceptions where housing benefit can still be paid in addition to Universal Credit. See the Universal Credit site for details.

Some people may find it difficult to budget their money and fall into debt. If this might happen, talk to your landlord straight away, as they can’t help you if they don’t know what’s going on.

Other help and advice:

• Gov.uk – other financial support
• Step Change
• Citizen’s advice

In some cases, if you can’t manage your money yourself, you can ask the DWP to pay your landlord direct. You should talk to the Job Centre Plus staff about this when you meet with them about your claim.

If you fall seriously into arrears, your landlord might ask the DWP to pay them directly. However, you should be careful to avoid falling into arrears as the additional amount they deduct, which is fixed, to pay off your arrears can be sizable and it might leave you short for other things. It’s always best to talk to someone before this happens and your arrears get out of control.