Who is eligible?

Universal Credit

In order to qualify for Universal Credit a person must:

• Have low or no income

• Be 16 or over

• Be under state pension age

• Have £16,000 or less savings between themselves and their partner

• Live in the UK

Someone cannot claim UC if they are entitled to the severe disability premium. Those with No Recourse to Public Funds also cannot apply.

Students

Some students or people in training could apply for Universal Credit if any of the following apply:

• They live with their partner who is eligible for UC

• They are responsible for a child

• They are disabled and entitled to Disability Living Allowance (DLA) or Personal Independence Payment (PIP) and have limited capability for work

• They are between ages 18-21 and do not have parental support

16 and 17 year olds

This age group can make a claim if any of the following apply:

• They have limited capability for work or are waiting for a Work Capability Assessment

• They are caring for a severely disabled person or are responsible for a child

• They are in a couple responsible for a child and their partner is eligible for UC

• They are pregnant and within 11 weeks of expected birth

• They do not have parental support and are not under local authority care

Those in work

There is no limit to how many hours a claimant can work. Claimants can earn a certain amount before their payments are reduced if they are responsible for a child or have a medical condition that limits their ability to work. This is called a work allowance.

Those living with partners

If both claim Universal Credit, there will be one payment for the whole household. A person’s partner’s income and savings will be taken into account for UC payments. If they separate, any surplus earnings will be divided equally between them. They will each need to re-apply individually. Victims of domestic abuse do not take on any surplus earnings from their partners.

How it works

Applications are made online. Couples who live together must apply as a pair. Applicants will need to provide certain evidence, including details of income, housing, and savings. They will also have to verify their identity online. After an application has been submitted, the DWP will arrange an appointment.

Those with a disability or illness will need a Work Capability Assessment to determine if they are eligible for higher payments. Most assessments are face-to-face and arranged by Maximus – the DWP’s Medical Services contractor. It will be decided if the applicant; is fit for work, has limited capability for work, or has limited capability for work and a limited capability for work-related activity. Applicants can challenge a decision made about their claim with a mandatory reconsideration.

Successful claimants will be given a work coach, who will draw up some responsibilities such as looking for work. If responsibilities are not met, sanctions will be issued. Claimants can appeal sanctions and ask for a hardship payment if they can no longer afford their rent, heating, food or hygiene needs. Work coaches may also provide support and advice for starting work.

Payments

Successful applicants must wait five to six weeks from the date of their claim till their first payment. This is made up of a one-month assessment period and up to seven days for the payment to be processed. It is possible to request an urgent advance of the first month’s payment, which is later paid back interest-free through future Universal Credit payments, within 12 months.

UC is dependent on earnings, and the claimant’s circumstances are assessed every month. There are online benefits calculators which help predict how much a claimant will receive. Payments are made up of a standard allowance (ranging from £342.72 to £594.04 for couples) and any additional amounts that may apply.

Additional amounts are granted:

• If the claimant has children (even more is offered if a child is disabled)

• If the claimant has a disability or health condition

• If the claimant cares for a severely disabled person

• Based on housing costs (homeowners can apply for a loan to help with interest payments on their mortgage)

It is the claimant’s responsibility to report any changes in their circumstances. They can do so online. For every additional £1 a claimant earns since their assessment, their payment is reduced by 63p.

The benefit cap limits the total amount of benefits a household can receive. The benefit cap in London for a family per year is £23,000. For a single person it’s £15,410. Universal Credit claimants are exempt from the cap if their household has earnings equivalent to at least the amount they would get for 16 hours per week at the National Minimum Wage for someone aged 25 or over. Households on UC no longer earning the minimum amount continue to be exempt from the cap for a 9 month ‘grace period’ if their earnings were above the threshold in each of the preceding 12 months.

Alternative Payment Arrangements (APA)

Those in financial difficulties can apply for an Alternative Payment Arrangement. Depending on the circumstances, this an APA can:

• Pay rent directly to the landlord

• Pay more than once a month

• Provide couples with split payments

Further payments

Claimants can apply for a budgeting advance through their local Jobcentre Plus to help with:

• Emergency household costs

• Getting a job or staying in work

• Funeral costs

There are a number of other grants and payments available, including help with bills, legal costs or childcare costs. More information can be found online.