How to claim Universal Credit if you are on low wages or don’t have a job

Universal Credit is a benefit for people of working age who need help with living costs because they are on a low income, have no job or cannot work.

Standard payments start at €311.68 per month, but there are many top-ups and discounts depending on your circumstances and those of your partner, if you have one.

You are means tested – you must have £16,000 or less in cash, savings and investments – and you must live in Britain.

You will also need to sign a ‘claimant commitment’, which is personalized to some extent, but essentially revolves around finding work or ways to increase your existing income.

If you break this obligation, or do not interfere with the system, you will face sanctions that will reduce your payments or stop them altogether.

UC was created from a merger of six benefits and is connected to other existing benefits. So you should do some research before signing up to make sure you and/or your partner won’t be worse off overall.

The six benefits and tax credits that UC replaces are: Child Tax Credit; Rent allowance; Income support; means-tested jobseeker’s allowance (JSA); means-tested Employment and Support Allowance (ESA); and working tax credit.

If you are still receiving this, you do not need to do anything unless your circumstances change or you receive a ‘migration notice’ stating that you must claim UC within three months to continue receiving financial support.

Rates for 2023/24 and 2024/25

Standard allowance for your household (Source: Gov.uk)

Applying for personal universal credit: getting started

There is one standard benefit for a household that is paid monthly, but depending on your circumstances you may receive top-ups or discounts if you receive other benefits.

Applications are online, but if that is not possible, you should call the helpline 0800 328 5644.

You start by creating an account and if you have a partner you will need to create both accounts and then link them together.

But if you and/or your partner already receive benefits or tax credits, you should first consider whether claiming UC will make you better or worse off. Use one for this benefits calculator or consult one of the organizations below.

During your claim you will need to provide a lot of information, including personal details, proof of identity and your finances. there is an overview here.

You may be asked to verify or provide more information during a telephone appointment or during a meeting at an employment agency.

A meeting will also be held to agree on the activities in your ‘claimant obligation’ (looking for work with the help of a ‘work coach’, trying to increase your earnings, etc.) before your benefits begin.

Additional UC payments are available if you have children: childcare costs if you and your partner work, have a disability or need help with housing costs.

But payments can be reduced for reasons such as holding more than £6,000 in savings and investments, having a paid job or other income, receiving other benefits or exceeding the limit. benefits cap.

The government says: ‘For every £1 you earn from working, your Universal Credit payment will be reduced by 55p. Your income is made up of your wages plus your new Universal Credit payment.”

You can report changes in circumstances via your UC account.

If you live in Scotland You must apply for UC in the usual way, but there are other options, such as receiving benefits twice a month instead of every month.

UC is also active in Northern Ireland, where more information can be found here.

To receive UC, you must be younger than the state pension age, unless you turn 66 and your partner is even younger. Until your partner also reaches state pension age, you can still receive UC as a couple.

But if you have a pension credit, the government warns that it is usually better to stick with it. Again, use a benefits calculator to check or seek help.

Depending on your circumstances, special or ‘alternative payment arrangements’ may be made. You can ask about this after you have submitted a claim. This includes receiving payments separately from your partner, getting paid twice a month and having the rent paid directly to your landlord.

But you must have a reason to get an APA, such as experience with domestic violence, addiction problems or rent arrears.

Local councils can help with UC claims, so it’s worth contacting them to find out what they offer.

Citizen Advice also offers direct help with the early stages of claims, including finding out if you qualify, filling out forms, preparing appointments and checking that the first payment is correct.

In the box on the right you will find links to charities and organizations with more information or who can help with claims.

What are sanctions and how do you challenge a decision?

You will have to carry out the work agreed in your ‘claimant commitment’, which will be regularly reviewed, and you will normally have to keep agreements unless you have a good reason for doing so.

Failure to do so could result in a ‘penalty’ which could result in UC payments being reduced or stopped.

If this means that you cannot pay rent, heating, food or hygiene, you can apply for hardship allowance, which must be repaid.

Citizen Advice has advice about this what to do if you receive a sanction here.

You can challenge an UC decision or sanction by requesting a ‘mandatory review’, usually within one month, but this can be extended up to 13 months if you have a good reason for the delay.

If you do not agree with the outcome, you have one month from the decision to appeal to a tribunal, which is independent of the government. Again, the period can be reduced to 13 months if you have a reason to do so.