Universal Credit Intro & Rates
Universal Credit is a new single payment for people who are looking for work or are on a low income.
Universal Credit will help claimants and their families to become more independent and will simplify the benefits system by bringing together a range of working-age benefits into a single payment.
It was introduced in October 2013 and will be rolled out nationally at a progressive rate according to HMRC. This is expected to be completed by the end of 2017 and will replace:
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Income Support
• Child Tax Credits
• Working Tax Credits
• Housing Benefit
The differences between Universal Credit and the current system
The main differences between Universal Credit and the current welfare system are:
• Universal Credit will be available to people who are in work and on a low income, as well as to those who are out of work
• Most people will apply online and manage their claim through an online account
• Universal Credit will be responsive – as people on low incomes move in and out of work, they’ll get ongoing support, giving people more incentive to work for any period of time that is available
• Most claimants on low incomes will still be paid Universal Credit when they first start a new job or increase their part-time hours
• Claimants will receive just 1 monthly payment, paid into a bank account in the same way as a monthly salary
• Support with housing costs will go direct to the claimant as part of their monthly payment
Universal Credit Rates 2016/2017 (Monthly) - 2017/2018 (Monthly)
Single claimant aged under 25: £251.77 - £251.77
Single claimant aged 25 or over: £317.82 - £317.82
Joint claimants both aged under 25: £395.20 - £395.20
Joint claimants either aged 25 or over: £498.89 - £498.89
First child or qualifying young person: £277.08 - £277.08 (born before 6 April 2017) £231.67 (born on or after 6 April 2017)
Second and each subsequent child or qualifying young person: £231.67 - £231.67
Additional amount for disabled child or qualifying young person
Low rate: £126.11 - £126.11 – child in receipt of DLA mobility or care (excluding high rate care component or registered blind)
High rate: £367.92 - £372.30 – child in receipt of high rate care component DLA or registered blind
Capability for Work Element
Limited capability for work (LCW): £126.11 -£126.11
Limited capability for work and work-related activity (LCWRA): £315.60 - £318.76
Caring for a severely disabled person for at least 35 hours a week: £150.39 - £151.89
You do not have to claim Carer’s Allowance to get the carer element.
Childcare Costs Element
70% of relevant childcare costs up to:
Maximum amount for one child – £646.35 - £646.35
Maximum amount for two or more children – £1,108.04 - £1,108.04
Housing Costs Element
• Eligible rent payments
• Certain service charges
• Mortgage interest.
There is a qualifying period of three months before you can be paid this element. You will not be paid a housing element if you are in paid work.
Please contact us for further information.
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