Universal Credit

The Government introduced Universal Credit in 2013, all ‘working age’ people receiving Benefits will transfer onto Universal Credit during 2018.

What is Universal Credit?

Universal Credit is a new type of benefit which will replace the main benefits.  It will affect anyone who claims the following benefits:

  • Housing Benefit
  • Job Seekers Allowance
  • Income Support
  • Employment and Support Allowance
  • Child Tax Credit
  • Working Tax Credit

You will be paid a single payment once a month, and this will vary according to your circumstances that month, it can vary due to:

  • Finding or losing a job
  • Fewer or more hours worked
  • A new baby
  • Relationship breakdown
  • Moving home

How do I apply?

  • You will need to apply on line and book an interview at the Job Centre
  • Your work coach will agree a programme with you for getting back to work, if you do not do the things on the agreement your money will be reduced.
  • You will need to have a bank account that allows money paying in and out
  • You will need to budget your month’s money to pay all your bills
  • It will be 6 weeks from your application until you receive your first payment and then you will be paid monthly after that
  • If you are on any of the above benefits the DWP will contact you to make the new application

Will I get less money?

Some people will have a cut in the amount they are paid, but some people will be better off. If you are in employment you may well be better off as Universal Credit is paid to you even if you work over 16 hours per week and your benefit is not cut per £ that you earn, but only as a percentage.

What will you need to do?

You will need to pay your rent out of your Universal Credit payment!

It is important that you build up 1 month’s rent on your account so that you do not have rent arrears when you receive your first payment.

You will need to set up a Direct Debit to pay your rent on the day that your benefit is paid to you.

If you have rent arrears you can ask for money to be paid straight to Mid-Wales Housing from your Universal Credit payment to repay the arrears.

If you are unsure how to pay your rent, or how these changes affect you, please contact us on 0300 111 3030. Our Income Management Officers and Welfare Benefit Advisors may be able to help you.