Universal Credit

Universal Credit is a payment to help with your living costs. You may be eligible for Universal Credit to help pay your housing costs if you are on a low income. Universal Credit is usually paid monthly in arrears.  

Universal Credit is replacing the following benefits:

  • Child Tax Credit
  • Housing Benefit
  • Income Support
  • Income Based Jobseeker’s Allowance
  • Income related Employment & Support Allowance
  • Working Tax Credit

For more information on Universal Credit please go to: https://www.gov.uk/universal-credit

If you are receiving any of these benefits or tax credits, you do not need to do anything unless either:

  • your circumstances change
  • you get a letter called a ‘Migration Notice’ telling you that you must claim Universal Credit

The DWP is in the process of moving all benefit & tax credit claimants to Universal credit. If you receive a ‘Migration Notice’ you must move to Universal Credit within 3 months of this notice.

You’ll stop getting these benefits and tax credits when you or your partner claims Universal Credit. If you or your partner gets Pension Credit, this will also stop if one of you claims Universal Credit.

This will not affect any other benefits you’re getting, such as Personal Independence Payment (PIP) or Carer’s Allowance.

For more information, please visit: https://www.gov.uk/guidance/tax-credits-and-some-benefits-are-ending-move-to-universal-credit

Housing Benefit

Housing Benefit can help you pay your rent if you’re unemployed, on a low income or claiming benefits. It’s being replaced by Universal Credit.

You can only make a new claim for Housing Benefit if either of the following apply:

  • you have reached State Pension age
  • you’re in supported, sheltered or temporary housing

For more information on Housing Benefit please visit: https://www.gov.uk/housing-benefit

Benefit cap

The benefit cap is a limit on the total amount of benefit you can get. It applies to most people aged 16 or over who have not reached State Pension age.

The benefit cap affects:

  • Universal Credit
  • Bereavement Allowance
  • Child Benefit
  • Child Tax Credit
  • Employment and Support Allowance
  • Housing Benefit
  • Incapacity Benefit
  • Income Support
  • Jobseeker’s Allowance
  • Maternity Allowance
  • Severe Disablement Allowance
  • Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before 9 April 2001)

You might not be affected by the benefit cap if you get certain benefits or you’re over State Pension age.

If you’re claiming Universal Credit the benefit cap might not start for 9 months, depending on your earnings.

The benefit cap might not affect your Universal Credit payments for up to 9 months. This is called the ‘grace period’.

You’ll get the grace period if all of the following are true:

  • you’re claiming Universal Credit because you stopped working or your earnings went down
  • you’re now earning less than £722 a month
  • in each of the 12 months before your earnings went down or you stopped working, you earned the same as or more than the earnings threshold (this was £658 up to 10 April 2023 and is £722 from 12 April 2023)

The amount you get through the benefit cap depends on whether:

  • you live inside or outside Greater London
  • you’re single or in a couple
  • your children live with you (if you’re single)
  • If you’re in a couple but you do not live together, you’ll get the amounts for a single person.
Benefit cap outside Greater London
  Per week Per month
If you're in a couple £423.46 £1,835
If you're a single parent and your children live with you £423.46 £1,835
If you're a single adult £283.71 £1,229.42

For more information on the benefit cap please go to: https://www.gov.uk/benefit-cap