Universal Credit

What is Universal Credit?

Universal Credit is an income-based benefit for people who are working age. It aims to top up your income to a level set by the government. To be eligible, your qualifying income must be below this level, and you must have no more than £16,000 in savings. You may be eligible for additional amounts, depending on your situation.

Universal Credit has replaced six older means-tested benefits. Most people can no longer make a new claim for an older benefit and must claim Universal Credit instead.

The benefits Universal Credit has replaced are:

• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Housing Benefit for people who are working age (HB)
• Income Support (IS)
• Child Tax Credit (CTC)
• Working Tax Credit (WTC).

If you are receiving one of the benefits above and you make a claim for Universal Credit, you will stop receiving the older benefit. Once this happens, you cannot go back to claiming the older benefit. You should get advice if you are not clear which benefit you should claim.

Who can claim Universal Credit?

To claim Universal Credit, you must:

• have a low income
• have no more than £16,000 in savings
• be working age
• not be in education
• meet the residence and/or immigration status rules for your situation
• accept a ‘claimant commitment’

What is a claimant commitment?

A claimant commitment sets out what you must do to receive Universal Credit. This will vary depending on your circumstances. It could include writing a CV, going to training courses or looking for and applying for jobs for a certain number of hours per week. If you don't do the things you have agreed to in your claimant commitment, your Universal Credit payments may be reduced or stopped altogether. 

How much could I get?

The amount of Universal Credit you will be entitled to depends on your qualifying income and whether you are claiming as a single person or as part of a couple. There are also additional amounts you may get depending on your circumstances.

If your claim is successful, the exact amount of your payment is calculated each month. This will be based on your qualifying income and situation during the previous month.

Your qualifying income includes a portion of any earnings, some benefit payments and any taxable income you have, including pension payments. A tariff income amount is also added if you have savings over £6,000.

Applying for Universal Credit

You will need to contact the Department for Work and Pensions to apply for Universal Credit. The Age Scotland Universal Credit guide provides more information on how to apply and how your claim will be assessed.

Benefit Workshops

The benefits system is complicated. It can be difficult to work out what you are entitled to, and how to claim it. Find out about joining one of our Benefit Workshops.