Am I eligible for Universal Credit?

Did you know millions of people miss out on Universal Credit each year? In fact, it’s estimated that £23 billion in benefits go unclaimed each year in the UK — and Universal Credit is the most commonly missed out on. Many people don’t realise they’re eligible, especially those who are working or have children.

In this guide, we’ll explore what Universal Credit is, how it works, who is eligible, and how much you could claim.

What is Universal Credit?

Universal Credit provides financial support to help with living costs for those on low incomes. It is replacing several older (legacy) benefits, including:

• Child Tax Credit
• Housing Benefit
• Income Support
• Income-based Jobseeker's Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Working Tax Credit

Everyone receiving legacy benefits will be moved to Universal Credit by 2026.

Who can claim Universal Credit?

Universal Credit is available to those on low incomes who need help with their living costs. While many claimants are unemployed, you can also receive Universal Credit if you work full-time, part-time, or are self-employed.

To claim Universal Credit, you must:

• Live in the UK
• Be aged 18 or over (except in some special cases) but under State Pension age
• Have £16,000 or less in savings and investments
• Have an immigration status that allows access to public funds (e.g., British or Irish citizenship, or settled/pre-settled status under the EU Settlement Scheme)

You can apply for Universal Credit if you are single.

If you live with a partner, you must apply together and be assessed as a household. If you live with other adults, such as parents or housemates, you can still claim, but your living situation may affect your entitlement.

How to apply for Universal Credit

You usually need to apply online.

Applications are typically processed within 5 weeks, so it’s important to apply as soon as possible. If claiming with a partner, you’ll both need to create an account, which will then be linked together. You’ll need:

• A bank account
• An email address
• Access to a phone

If you can’t apply online, you can call 0800 328 5644 or visit your local Jobcentre.

You’ll need to provide:

• Proof of identity (e.g., passport, payslip)
• Your National Insurance number
• Details of your income, rent, childcare costs, and other benefits

Your claim will be backdated to the date you submitted it, so your first payment may be higher than your regular monthly amount.

How much Universal Credit can you receive?

Universal Credit consists of:

1. The standard allowance – A fixed amount for everyone who qualifies.
2. Extra amounts – Additional payments based on your circumstances.

Standard Allowance (2024/25 rates)

You are...	Claiming alone	Claiming with a partner
Under 25	£311.68	£489.23
25 or older	£393.45	£617.60

If you live with a partner, only one of you needs to be 25 or older for you both to get the higher amount.

Extra amounts you may qualify for

You could get more if you:

• Have children living with you
• Need help with housing costs (rent or mortgage interest support)
• Have a disability or health condition that limits your ability to work
• Care for someone receiving a qualifying benefit

Childcare costs

One of the most valuable extra amounts you can claim is help with childcare costs if you’re working. If you're working and receive Universal Credit, you can claim back up to 85% of your childcare costs. This applies regardless of how many hours you work, as long as both you and your partner are working or have job offers.

You can claim up to:

• £1,014.63 per month for one child.
• £1,739.37 per month for two or more children.

Your childcare provider must be registered (e.g., a nursery or childminder). You’ll pay for childcare upfront and claim it back as part of your Universal Credit payments.

👉 You might also be able to get help with free childcare hours.

How much is the child element of Universal Credit?

Having children can increase your Universal Credit payments. The amount depends on when your children were born:

Children	Monthly extra payment
First child (born before 6 April 2017)	£333.33
First child (born on or after 6 April 2017)	£287.92
Second child (any birthdate)	£287.92

If you have three or more children, you may not receive extra payments for additional children unless special circumstances apply (e.g., multiple births or adoption).

For example, if you have four children—born in 2013, 2015, January 2017, and 2019—you would only receive extra payments for the three children born before 6 April 2017. The child born in 2019 would not qualify for additional payments under current rules.

If any of your children have a disability, you could qualify for further extra amounts:

• £156.11 per month if your child is disabled
• £487.58 per month if your child is severely disabled
• £198.31 per month if you are the carer for someone who receives certain health or disability benefits (must meet specific care criteria)

Child Benefit

On top of Universal Credit, you may be eligible for Child Benefit. This is available to all parents or guardians, regardless of whether you're receiving Universal Credit.

• £25.60 per week for your first or only child.
• £16.95 per week for each additional child.

There's no cap on the number of children you can claim for. If you receive Universal Credit, you can choose to have your Child Benefit paid weekly instead of the usual monthly payment option.

What is the benefit cap?

The benefit cap limits the total amount of certain benefits, including Universal Credit, that you and your household can receive.

Your payments will be reduced based on the cap, which is determined by the number of people in your household and your area.

• The cap applies to both Universal Credit and Child Benefit payments.
• If your total benefits go over the limit, your Universal Credit payments will usually be reduced.

Can you get Universal Credit if you work?

Yes. If you work, your Universal Credit payments may decrease.

You’ll have a work allowance, which is the amount you can earn before your Universal Credit is affected:

• £404 if you receive housing support
• £673 if you don’t receive housing support.

For every £1 earned over your work allowance, your Universal Credit will reduce by 55p. Since your earnings are calculated each month, if you earn more in one month, your Universal Credit payment for the following month will be lower.

Moving from legacy benefits to Universal Credit

Once you apply for Universal Credit, you will no longer be able to claim your old benefits, even if your Universal Credit application is unsuccessful.

If you wait to be moved over by the Department for Work and Pensions (DWP):

• Your payments will continue during the transition
• You may receive a transitional payment to ensure you’re not worse off.

Accepting your claimant commitment

Before receiving payments, you need to agree to a claimant commitment. This is a document outlining what you must do to:

• Prepare for work if unemployed
• Report changes in your circumstances as soon as possible
• Increase earnings if already working.

If you don’t meet the agreed requirements, your payments could be reduced or stopped.

Where to get help with benefits

If you need help, try:

• Benefit calculators to check eligibility and potential payments.
• Citizens Advice for guidance on claims.
• The Universal Credit helpline or your local Jobcentre.

Help if you’re struggling financially

If you’re struggling with money or debts, free support is available from:

• StepChange
• MoneyHelper
• National Debtline
• Citizens Advice
• Money Wellness

Universal Credit can be a crucial support if you're struggling financially. If you think you might be eligible, don’t delay—check your eligibility today and apply to start receiving the support you’re entitled to.