Universal Credit Explained

Universal Credit is a new benefit to support you if you’re working and on a low income or you’re out of work. This page explains how Universal Credit is different from existing benefits, how much you’ll be paid and how to apply for it. Do you know…

·         What is Universal Credit?

·         Universal Credit key facts

·         When will I be paid Universal Credit?

·         How much is Universal Credit?

·         How does working affect Universal Credit?

·         How does other income affect Universal Credit?

·         How do savings affect Universal Credit?

·         How to apply for Universal Credit

Get the lowdown on Universal Credit from the Money Advice service website.

Money Manager Tool For Universal Credit Claimants

An online budgeting tool for people who claim Universal Credit has been launched by the DWP. Universal Credit bundles all benefits – including housing – into a single payment, giving claimants greater freedom to control their own finances. However the new system has caused headaches for landlords, with 25% of those renting to UC claimants saying their tenants have fallen into arrears in a recent RLA survey. DWP has been working in collaboration with the Money Advice Service to design and develop a new online Money Manager Tool. It has now been installed in all Universal Credit Job Centres and can be accessed online.  Find the tool on the Money Advice Service website.

Nearly Half of UK Households Facing Interest Rate Peril

Up to 47% of the UK's households would find it hard to cover a substantial rise in interest rates, research has revealed. According to the Money Advice Service (MAS), an independent body set up by the government in 2010 to improve people's money management, with the average UK mortgage being around £180,000, a mere 1% rise in interest rates would see millions of homeowners' monthly mortgage payments increase by over £90. Read more on 24dash.

Universal Credit Help Scheme Trialled

A scheme to help universal credit claimants pay their rent on time by making it easier to access money advice services is being trialled by the government. The DWP is piloting a new programme in four job centres, in which universal credit claimants undergoing an assessment about their ability to work are directed towards money advice if they are struggling with payments such as housing costs. The move is a response to low take-up of local financial advice services, which are provided by councils or Citizens Advice Bureaux (CAB). These are currently signposted by a universal credit call centre if claimants are having difficulty managing their money. Under the pilot, the claimant has an interview of up to an hour long with a ‘work coach’ at their local job centre, who has the power to arrange a meeting between the claimant and their council or local CAB. Read more on Inside Housing.