Universal Credit is a new benefit for working age people who are on a low income or out of work.

It replaces a number of existing benefits and tax credits:

  • housing benefit
  • income-based Jobseeker's Allowance
  • income-based Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit

Anyone of working age who applies for any of the above benefits will automatically be asked to apply for Universal Credit.

Importantly, people who already receive one of the above benefits could be moved over to Universal Credit by the Department for Work and Pensions (DWP) from those dates.

At first, the switch is likely to be made when people report a change their circumstances but at some point in the next two or three years, the DWP will move everyone of working age who receives one of the above benefits across to Universal Credit.

Universal Credit is for people of a working age, not people over the pension credit age.

Last updated: Tue 18th January, 2022 @ 12:20