Universal Credit is a benefit payment provided by the Department of Work and Pensions (DWP). The financial help could be particularly helpful amid the cost of living crisis that Brits are currently facing.
The benefit is paid monthly to people who are out of work, cannot work or those on low income, and people are being urged to check if they might be eligible to claim it.
Here's everything you need to know about Universal Credit, including who is eligible, how much money you'll receive and the different elements of it, how to apply for UC and if the benefit is taxable.
What is Universal Credit?
Universal Credit is paid to people who are out of work or on a low-income, live in the UK, are over the age of 18 years, are under state pension age, and have less than £16,000 in savings. In some circumstances, people aged 16-17 are also eligible for it.
The payment, which is usually made once a month in the UK – or twice a month for some in Scotland – helps with living costs.
How much is Universal Credit?
The amount of Universal Credit paid to you can vary as the benefit is made up of several different elements.
If you’re claiming Universal Credit, you’ll get a basic standard allowance for your household. The amounts you will get in 2022-23 is:
- £265.31 a month for single claimants under 25
- £334.91 a month for single claimants aged 25 or over
- £416.45 a month for joint claimants both under 25
- £525.72 a month for joint claimants with either aged 25 or over.
How to apply for Universal Credit
People can apply for Universal Credit online. For this you first need to create a Universal Credit account, which you can use to make a claim.
You must complete your claim within 28 days of creating your account or you will have to start again.
If you live with a partner, then you both need to create accounts and then link them together when you claim. Joint claimants cannot claim by themselves.
In order to apply online, you'll need:
- your bank, building society or credit union account details
- an email address
- access to a phone.
If you don't have the above and you're unable to claim online, you can try claiming through the phone via the Universal Credit helpline: 0800 328 5644.
You can also go to a jobcentre or get support from the Citizens Advice Help to Claim service.
Other things you'll need to make the claim are proof of identity documents, which can be:
- driving licence
- passport
- debit or credit card
- payslip or P60.
You will also need to provide the following information to complete your claim:
- your housing, for example how much rent you pay
- your earnings, for example payslips
- any disability or health condition that affects your work
- how much you pay for childcare if you want help with childcare costs
- your savings and any investments, like shares or a property that you rent out.
Sometimes, the Universal Credit team may need an appointment with you if:
- they need more information
- you cannot verify your identity online.
You will be informed if this appointment will take place in a jobcentre or via phone.
Is Universal Credit taxable?
Income tax is not payable on Universal Credit. Since it's non-taxable, the benefit shouldn't have to be mentioned on your tax returns.
Other state benefits such as Pension Credit, Winter Fuel Payments and Christmas Bonus are also not taxed.
