Many people are being encouraged to claim Universal Credit – but this may not be their only option. You should make sure Universal Credit is the best option for you before you claim.
When will I have to claim?
New claims for Universal Credit can now be made throughout the UK.
But, you will only need to claim Universal Credit if you have:
- Received a Migration Notice from the DWP*, or
- You have a change that stops one of these benefits and you need extra financial help.
- You have a change that means you now need extra financial help and would normally be looking to make a new claim for one of the benefits Universal Credit is replacing.
These are:
- Income-Based Jobseekers Allowance,
- Income-Related Employment and Support Allowance,
- Income Support,
- Tax Credits,
- Housing Benefit.
* this is where the DWP move existing legacy benefit claimants across to Universal Credit under a formal exercise (click here for more information).
Example:
What change might trigger the need to claim?
You may need to claim Universal Credit if you have one of the following changes in your circumstances:
- You are moving to a new Local Authority area and need help with your renthttps://mannligapotek.com/.
- You are finishing work and have no source of income.
- You are separating from your partner.
- You have your first child.
- You become unfit for work.
Please note this is not an exhaustive list.
But the following changes do NOT normally trigger a new claim for Universal Credit:
- Moving within the Local Authority area – when you are already getting Housing Benefit and you are not having any other change in circumstances.
- Getting some Tax Credits and have a change in your circumstances that would mean more / less Tax Credits such as having a baby, or starting work.
Example:
Glen and Janet live with their two sons in a rented house. They currently get Tax Credits, Housing Benefit and Child Benefit. Janet has just lost her job. Glen’s job is secure – he works full time. They have not received their Migration Notice yet. They do not have to claim Universal Credit, they can just report the change to HMRC and the HB Office to have their Tax Credit award and Housing Benefit re-assessed. But, they may be better off on Universal Credit. They should seek advice to see what is their best option.
Example:
Jonathon and Sara are separating. Sara is moving out. They have been claiming Income-Related Employment and Support Allowance and Housing Benefit – Jonathon is the main claimant of both. Jonathon will continue to live in their one bedroom flat. He will but able to stay on his IR-ESA and HB – but needs to report the split to DWP and HB. If Sara now has no income or needs extra financial help, she will need to make a claim for Universal Credit.
Example:
Mumtaz has been living in a privately rented bedsit (getting Housing Benefit) and is moving into a one bedroom social rented flat at the weekend. He also gets Income-Related Employment and Support Allowance. As the move is within the Local Authority area he doesn’t have to claim Universal Credit – his Housing Benefit claim can transfer to his new flat and he can stay on Income-Related Employment and Support Allowance.
IMPORTANT: If you are told you have to claim Universal Credit – seek advice immediately from a Benefits Adviser to make sure this is your best / only option, some people can be worse off on Universal Credit.
What if my circumstances don’t change?
If you are already getting one or more of the benefits which are being replaced by Universal Credit (and you continue to be entitled to these) and you do not have a change in your circumstances that triggers a claim for Universal Credit, you do not have to claim UC unless you receive a Migration Notice.
Example:
Zoe is a lone parent. She works 16 hours a week and currently receives Tax Credits and a small amount of Housing Benefit. She has two children and enjoys her job. She can’t see that her circumstances will change any time soon.
Zoe does not have to claim Universal Credit. Unless she has a change in her circumstances that trigger a claim (such as a partner moving in) she can stay on her Tax Credits and Housing Benefit until she receives a Migration Notice at some point between April and June 2024.
But Zoe should speak to a Benefits Adviser as she may be better off on Universal Credit (although there is a lot to think about – see below).
* this is where the DWP move existing legacy benefit claimants across to Universal Credit under a formal exercise (click here for more information).
Can I choose to claim Universal Credit?
If you meet the key claiming rules then you can claim Universal Credit now – but seek advice before you do. Once you claim Universal Credit, you cannot change your mind and go back to onto the legacy benefit system.
You can choose to move onto Universal Credit at any time – you do not need to wait until you receive a Migration Notice or have a change in your circumstances means you have to.
You should get advice before making the claim to make sure you are not going to be worse off and it is your best option!
You’ll need to think about:
- Whether you (or your partner) would have to look for work as a condition of receiving Universal Credit.
See What do I have to do? for more information. - What deductions might be taken – reducing the amount you’ll receive.
See Deductions for more information. - Will you be okay paying your rent yourself (if you currently have Housing Benefit paid directly to your landlord)?
See Help with your rent for more information. - Do you have an email address, and mobile phone number?
- Will you need to open a bank account?
See Do I have to have a bank account? for more information. - Do you have regular access to the internet?
- Will you manage budgeting your money monthly?
See Getting paid for more information. - If you work, then consider how Universal Credit will work for you, especially if you need help with your childcare costs – as you will need to pay for these upfront.
See How does UC work for workers? for more information.
Example:
Samia lives with her two grown up sons in a rented three bedroom house. She currently receives Income-Related Employment and Support Allowance. She isn’t entitled to any Housing Benefit because both her sons work and when the HB Office work out her entitlement they take off two non-dependant deductions. Her Income Officer explains that she could be better off on Universal Credit and suggests she contact a Benefits Adviser to check this out. The Benefits Adviser explains that because she is in the Support Group of ESA she would not have any work search on UC. Also, because Universal Credit has lower non-dependant deductions she would be entitled to help with her rent. The adviser discusses budgeting and potential deductions that might be taken off her Universal Credit award. Samia decides to make a claim and she finds that she is over £450 a month better off.
“I’d been getting Tax Credits and Housing Benefit to top up my wages. After talking to a Benefits Adviser I discovered I’d be better off on Universal Credit – they even helped me choose the best date to claim.”