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What is universal credit?

Universal credit is a monthly payment made by the government to help with living costs.

In Scotland, you can choose to have it paid twice a month instead.

If you鈥檙e on a low income or out of work, you may be able to claim universal credit.

Here鈥檚 our guide to help you understand how to apply and how much you might get.1

What does universal credit replace?

Universal credit was brought in to replace:

  • Child tax credit
  • Housing benefit
  • Income support
  • Working tax credit
  • Income-based jobseeker鈥檚 allowance
  • Income-related employment and support allowance

If you already receive any of these, you won't need to do anything, unless:

  • You need to report a change in your circumstances
  • The Department for Work and Pensions (DWP) gets in touch about moving you to universal credit

How to apply for universal credit

Find out how to apply for universal credit on the . If you live in Northern Ireland, you'll need to go to . You鈥檒l also need check you鈥檙e .

To apply online, you鈥檒l need:

  • An email address
  • Access to a phone
  • Your bank, building society or credit union account details

You鈥檒l also need details of the following:

  • Housing costs, such as how much rent you pay
  • Income (for example, payslips)
  • Savings and any investments (for example, shares)
  • Childcare costs - if you鈥檙e applying for help with these
  • Your National Insurance number (if you have one)
  • Any disability or health condition that affects your work
  • Any other benefits you get

You鈥檒l also need proof of identity, such as:

  • Driving licence
  • Passport
  • Debit or credit card

You can't claim universal credit if you're also entitled to the severe disability premium or have been within the last month.

As well as applying online, you can also call the universal credit helpline or go to the job centre.

How much is universal credit?

Universal credit payments vary because there鈥檚 a standard allowance per household, plus other elements you may, or may not, be eligible for. These include housing, childcare and disability.

Find out on GOV.UK.

Universal credit is paid in arrears, but you can apply for an advance payment if you don鈥檛 have enough to live on while you wait.

Do savings affect universal credit?

Your payment may be reduced if you have more than 拢6,000 in money, savings and investments. If you鈥檙e under state pension age, the amount saved in your pension pot won鈥檛 affect how much universal credit you鈥檙e entitled to.

More financial help

You might be able to apply for , including alternative payment arrangements, or a budgeting advance.

The also has details of how to get help with things like:

  • Emergency household expenses
  • Funeral costs
  • Cold weather payments
  • Free school meals
  • Legal costs

You could also be missing out on other benefits, which you may be entitled to.

Footnotes

1 We鈥檝e made every effort to ensure this article is accurate but things may change. Please check the for up-to-date information.