How Universal Credit Works?
What would I recieve?
You will normally receive one monthly payment to cover your living costs. You and your partner will get one payment between the 2 of you if you claim as a couple. The payment is made up of a basic standard allowance and extra payments that might apply to you depending on your circumstances.
When might I get extra payments?
You might be able to get extra payments if you:
- look after one or more children
- work and pay for childcare
- need help with housing costs
- are disabled or have a health condition
- are a carer for a disabled person or you have a disabled child
Who is UC for?
Universal Credit is for working-age claimants and is slowly replacing 6 legacy benefits. e.g. Housing Benefit. Universal Credit is paid monthly, mostly paid directly to the claimant and it is their responsibility to pay their rent to their landlord.
Am I entitled to the Housing element?
You may be entitled to the housing element of Universal Credit because of your low income. The amount of housing element you are entitled to will depend on your circumstances, such as you or your partner’s salary, the number of bedrooms you have (see bedroom tax), and if you have any non-dependants in your home.
Use here to check if you are entitled to or better off on Universal Credit.
I get help with my rent
If your UC payment includes help with rent, you will have to pay your landlord each month from your Universal Credit payment. If you are in debt, have rent arrears or you’re struggling to manage your money you can ask the DWP to pay the rent directly to your landlord.
I am working
You can get Universal Credit if you are working but your Universal Credit will reduce gradually as you earn more, and it will go up if your job ends or you earn less.
There are two aspects to consider:
- The Administrative Earnings Threshold
- The Conditionality Earnings Threshold.
If you as an individual earn below the AET in an assessment period, you must:
- show you’re actively looking for more, or better-paid work
- be available for work
unless you’re part of a couple whose combined earnings are at, or above, the couple’s AET.
If you’re part of a couple whose individual earnings are below the individual AET, and whose combined earnings are below the couple’s AET, both of you must:
- show you’re actively looking for more, or better-paid work
- be available for work
You will also get regular support from a ‘work coach’. Your work coach can help you with job search strategies, interview skills and connecting with employers.
If you earn the individual AET or more, you do not need to actively look for more or better paid work.
The Conditionality Earnings Threshold (CET) is an amount that’s based on the number of hours you can reasonably be expected to work or do work-related activities. It is based on your circumstances but the default for most people is 35 hours a week.
If you are working and earning the equivalent of your CET at National Living Wage (or National Minimum Wage if under 23) you are considered to be working enough and will not be asked to take part in work focused interviews, work preparation or work search. For example: if you are earning £1500 per month, this is over your CET and you will not be asked to carry out further tasks.
Get an Advance Payment
It will usually take about 4 weeks after you apply to get your first Universal Credit payment, but you can ask for your first payment sooner if you do not have enough money to live on – this is called an advance payment. The advance payment is a loan which will be deducted in installments from your future Universal Credit payments every month until you have paid it back.
Want to speak to someone about your UC? Call the UC Helpline on 08003285644
What is UC Managed Migration?
What is managed migration?
All residents under pension credit age and in receipt of housing benefit (HB) will need to move onto Universal Credit (UC) between now and end of December 2025 in a process called Managed Migration. The DWP is writing to ensure HB claimants make a claim for UC. This letter is called a ‘migration notice’ and will be sent by post.
What will happen?
On receipt of a Managed Migration Notice HB claimants need to start their migration process within three months of the date of the notice, and before the stipulated deadline day.
The DWP will send HB claimants reminder notices to remind them to make a UC claim by the deadline day. You will receive 2 weeks of extra HB payments if you claim within the deadline date. However, you will lose these payments if you fail to make a claim for UC before the migration day deadline date in the migration notice
I receive HB, should I migrate now?
HB recipients should not do anything until they receive their Managed Migration Notice. You may lose money if you claim Universal Credit too early. You can check yourself if you’re better or worse off on UC by using a Better off Calculator https://hexagon.org.uk/money-matters-2/better-off-calculator/
You will not be moved onto UC automatically, so it’s essential to follow the instructions in your migration notice. Otherwise, your benefits will stop.
How do I make a claim?
The DWP expects UC claims to be made online and the migration notice explains how the process works. However, telephone claims can be made in exceptional circumstances.
How can Hexagon support me with the migration?
We’re completing a very quick questionnaire with residents on HB. These questions will help us find which residents need support and the best ways to help them.
Our Money Support Team are also on hand to help with any problems that you experience because of moving over to UC. Contact us on 020 8778 6699 or moneysupport
I need help with my claim
For Help with your claim
Call the free UC helpline on 0800 328 5644 Or Call Help to Claim on 0800 144 8444