Universal Credit Intro & Rates

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 2017/2018 (Monthly) – 2018/2019 (Monthly)

Standard Allowances

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

Child Element

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: £372.30 – £383.86 – 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):  £318.76 – £328.32

Carer Element

Caring for a severely disabled person for at least 35 hours a week: £151.89 – £156.45

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

Can cover:

• 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.