Universal Credit is a DWP benefit designed to replace a number of older payments (Picture: Mike Kemp/In Pictures via Getty Images)
The Department for Work and Pensions (DWP) has unveiled a series of checks you can do before making a Universal Credit (UC) claim, the Mirror reports.
The guidance comes as a number of people have been moved over to Universal Credit from several other ‘legacy benefits’, such as Income Support and Housing Benefit, which are slowly being phased out.
Four other benefits are being phased out, too: Child Tax Credit, Income-related Employment Support Allowance (ESA), Income-based Jobseekers’ Allowance (JSA) and Working Tax Credit.
The ‘managed migration’ away from these benefits has already begun, as some claimants have already switched to UC in 2022 and 2023 – but the full change isn’t expected to be complete until 2028.
Some may want to pre-empt the switch-up by applying for Universal Credit in advance.
You don’t need to, as you’ll be contacted with a ‘migration notice’ letter and given a date by which you need to make your application.
Are you thinking of applying to Universal Credit? (Picture: Getty Images/iStockphoto)
However, if you’re keen to jump the gun, there are a few essential things to keep in mind before making your UC application – as it could affect how much money you receive.
Here are the checks the DWP advises…
Check you are eligible for Universal Credit
If you’ve been told to migrate over to Universal Credit from a legacy benefit, the eligibility rules for UC are different.
But if you’re applying without having received a notice, you’ll need to check you are eligible, using the gov.uk website’s criteria.
Universal Credit is a benefit for those on a low income, and you may be working or not working (out of work, or unable to work).
Who is eligible to claim Universal Credit? (Picture: Geography Photos/Universal Images Group via Getty Images)
However, to be eligible, you do need to:
Be aged 18 or over (with some exceptions for those aged 16/17)
Be under State Pension age
Be living in the UK
Have £16,000 or less in money, savings and investments.
Note that if you’re living with a partner, you both need to claim for UC even if they are not eligible – and their income and savings will be included in your calculation.
See if any savings you have go above the Universal Credit limit
How much you get in Universal Credit – which is paid monthly – will vary depending on your circumstances.
As mentioned above, the amount of money you have in the bank affects a Universal Credit claim.
A certain amount in savings can affect your Universal Credit claim (Picture: Getty Images)
If you’ve got £16,000 or more in savings or investments, you won’t be eligible.
Anyone with £6,000 or more in savings or investments will likely see money taken off their payment. If you earn money through a paid job, you may also receive less.
However, if you claim tax credits, have £16,000 in savings, are given a migration notice and only transition to UC from your existing benefit within the specified time frame, then you will be protected from this savings rule for 12 months, the DWP says.
Find out how Universal Credit payments are affected by debts
Similarly, if you’re in arrears with certain bills such as your council tax, water or energy bills, child maintenance payments or court fines, you could get money taken off your Universal Credit payment.
It’s worth being aware of and checking to see if your benefits will be affected before applying.
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Check if Universal Credit payments are higher or lower than any support you’re currently getting
Finally, it’s wise to know if you will be getting more or less money by claiming UC.
Many people can do this by using benefits calculators, such as EntitledTo or Turn2Us.
If you’re due to get less – but you’ve applied to Universal Credit as a result of receiving a migration notice – then you’ll be topped up to ensure you’re getting the same amount.
The DWP website states: ‘On Universal Credit, most people will be entitled to the same amount they received from their previous benefits or more.
‘If the amount you are entitled to on your existing benefits is more than you’ll get on Universal Credit, a top up is available. This is called ‘transitional protection’.’
Use a benefits calculator to check if you’ll get more or less after switching from an older benefit to Universal Credit (Picture: Getty Images/iStockphoto)
Note that you WON’T get a top-up if you are on a benefit that is being phased out but decide to apply for Universal Credit before you’re sent a letter notifying you to do so.
The DWP adds: ‘You can only get this top up if you have received a Migration Notice letter from DWP and claim by the deadline date on your letter.’
You’ll have three months from the date the notice letter is sent to make your new application and to ensure that you keep getting financial support from your benefits.
To find out more about Universal Credit, the benefits it is replacing, eligibility and how/when to apply, visit the gov.uk website here.
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Useful checks if you’re on a legacy benefit that’s being phased out.