Am I eligible for Universal Credit?

It's thought that as much as £23 billion of benefits goes unclaimed each year.

A significant amount of this is unclaimed Universal Credit, with many people unaware of the benefit or assuming they won't be eligible for it.

We're exploring what this benefit is, how it works, who's eligible, and how much you could claim.

Universal Credit is a means-tested government benefit

Universal Credit is a payment from the government to help with your living costs. It's a means-tested benefit. This means that your eligibility and how much you receive depends on your financial situation.

Universal Credit is replacing some '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 who receives 'legacy benefits' will have been migrated to Universal Credit by 2029.

Universal Credit is for people who need help with their living costs

Universal Credit is designed for people who have low incomes and need help with their living costs. While many people who receive Universal Credit aren't working, you don't have to be unemployed to claim. People who work full-time, part-time, or who are self-employed can be eligible for this benefit, too.

To claim Universal Credit, you must:

• Live in the UK.
• Be aged 18 or over, but under State Pension age (currently 66, but rising to 67 or 68 depending on your date of birth).
• Have £16,000 or less in cash, savings, and investments.
• Have an immigration status that allows you to access public funds (e.g., British or Irish citizenship, or settled/pre-settled status under the EU Settlement Scheme).

If you have a partner and you live together, you must claim jointly and be assessed together. If only one of you is eligible, then you may still be able to get Universal Credit but you/your partner's ineligibility could affect how much you receive.

If you live with other adults, like your parents or housemates, then you can claim on your own. But your living situation may affect your eligibility and how much Universal Credit you receive.

How much Universal Credit you receive depends on your circumstances

Universal Credit is made up of two parts:

• The standard allowance. Everyone who's eligible for Universal Credit receives this.
• Extra amounts. This is additional money that you may qualify for in certain circumstances.

Your standard allowance depends on your age and relationship status

How much standard allowance you receive depends on your age and whether you're claiming alone, or jointly with your partner.

Our handy table shows you the maximum monthly standard allowance you could be eligible for:

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

If you're living with your partner, only one of you needs to be 25 or older for you both to qualify for the higher amount.

It's also important to remember that the money you receive is for you both to share. You won't receive this amount each.

Your circumstances may mean you're also eligible for extra amounts

You may also qualify for extra amounts of Universal Credit to further help with your living costs.

You can get extra amounts of Universal Credit if:

• You need help with your housing costs.
• You have children.
• You have a disability or health condition that limits your ability to work.
• You have caring responsibilities for someone who receives their own benefits.

If you live with your partner, then any extra amounts you qualify for may be shared between you.

The benefit cap may limit how much you receive

Universal Credit is one of the benefits affected by the benefit cap. This is a limit on the total amount you can get in benefits per month. If your Universal Credit entitlement takes you over the cap, then either your Universal Credit or other benefit payments will reduce. This is so that you only receive the maximum amount available.

If you're working, your earnings will decrease your Universal Credit

If you're working, then you'll have a "work allowance", which is the amount you can earn before your Universal Credit payments are affected. The monthly work allowances for 2024/25 are:

• £404 if your Universal Credit payments include help with housing costs.
• £673 if your Universal Credit payments don't include housing support.

For every £1 that you earn over your work allowance, your Universal Credit payments will decrease by 55p. How much you need to earn before your payments stop will depend on your individual circumstances. For example, if you receive extra amounts of Universal Credit, you may be able to earn more before your payments stop.

You'll usually need to apply for Universal Credit online

To apply for Universal Credit, you'll need to create an online account. If you live with your partner, you'll both need to do this. You'll link your accounts together when you claim. Then, you'll need:

• Your bank details. 
• An email address.
• Access to a phone.

If you don't have these, you won't be able to apply online. Instead, you'll need to call the Universal Credit helpline on 0800 328 5644 or go to a Jobcentre to apply.

To submit your claim, you'll need to provide:

• Proof of your identity (e.g., your passport or a payslip).
• Your National Insurance number.
• Information about your finances (e.g., your income, rent, childcare costs, and other benefits you receive).

If the Universal Credit team needs more information, you may need to speak to them on the phone or face-to-face to complete your application.

Once your claim is approved, it will be backdated to the date you submitted it. So, your first Universal Credit payment may be higher than your ongoing monthly payments.

Applying for Universal Credit if you already receive 'legacy benefits'

You can apply for Universal Credit if you receive any of the 'legacy benefits' that Universal Credit is replacing. However, it may be better to wait until you're asked to migrate to Universal Credit by the Department for Work and Pensions (the DWP). There are two reasons for this:

• Applying for Universal Credit could stop your other benefit payments, even if your application isn't approved. You won't usually be able to apply for your old benefits again.
• You may be worse off on Universal Credit. How much you're eligible for in Universal Credit may be less than you already get from your existing benefits.

If you wait to migrate, then the DWP will make sure that neither of these things happen. They'll ensure that your payments continue throughout the migration. They'll also make sure you get 'transitional payments' to top up your Universal Credit if needed to make sure you're not worse off.

Before you're paid any Universal Credit, you'll need to accept your 'claimant commitment'

To get Universal Credit payments, you'll need to make and accept an agreement called a 'claimant commitment'. This is a statement of what you agree to do to:

• Prepare for work if you aren't working.
• Find a job.
• Increase your earnings if you are already working.

What's in your claimant commitment will depend on your individual circumstances. If you live with your partner, you'll each have your own claimant commitments. If, at any point, you fail to do everything you've agreed to, your payments could be reduced or stopped.

Where to get help with benefits

For help with benefits, a benefit calculator could be a good starting point. These calculators can:

• Tell you if you're eligible for Universal Credit, and how much you could receive.
• Show you other benefits you could claim to get all the help you're entitled to.
• Indicate whether you'd be better off on Universal Credit than 'legacy benefits'.

If you still have questions or need help applying, then you can speak to:

• Citizens Advice 
• The Universal Credit helpline 
• Your local Jobcentre 

What to do if you're struggling

If you're struggling to manage your money or have debts, then help is available. You can get free, independent advice on your situation from:

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

Sources