It's thought that as much as £23 billion of benefits goes unclaimed each year.
A significant amount of this is unclaimed Universal Credit, with many people unaware of the benefit or assuming they won't be eligible for it.
We're exploring what this benefit is, how it works, who's eligible, and how much you could claim.
Universal Credit is a payment from the government to help with your living costs. It's a means-tested benefit. This means that your eligibility and how much you receive depends on your financial situation.
Universal Credit is replacing some 'legacy benefits', including:
Everyone who receives 'legacy benefits' will have been migrated to Universal Credit by 2029.
Universal Credit is designed for people who have low incomes and need help with their living costs. While many people who receive Universal Credit aren't working, you don't have to be unemployed to claim. People who work full-time, part-time, or who are self-employed can be eligible for this benefit, too.
To claim Universal Credit, you must:
If you have a partner and you live together, you must claim jointly and be assessed together. If only one of you is eligible, then you may still be able to get Universal Credit but you/your partner's ineligibility could affect how much you receive.
If you live with other adults, like your parents or housemates, then you can claim on your own. But your living situation may affect your eligibility and how much Universal Credit you receive.
Universal Credit is made up of two parts:
How much standard allowance you receive depends on your age and whether you're claiming alone, or jointly with your partner.
Our handy table shows you the maximum monthly standard allowance you could be eligible for:
|
You are… |
Claiming alone |
Claiming with a partner |
|
Under 25 |
£311.68 |
£393.45 |
|
25 or older |
£489.23 |
£617.60 |
If you're living with your partner, only one of you needs to be 25 or older for you both to qualify for the higher amount.
It's also important to remember that the money you receive is for you both to share. You won't receive this amount each.
You may also qualify for extra amounts of Universal Credit to further help with your living costs.
You can get extra amounts of Universal Credit if:
If you live with your partner, then any extra amounts you qualify for may be shared between you.
Universal Credit is one of the benefits affected by the benefit cap. This is a limit on the total amount you can get in benefits per month. If your Universal Credit entitlement takes you over the cap, then either your Universal Credit or other benefit payments will reduce. This is so that you only receive the maximum amount available.
If you're working, then you'll have a "work allowance", which is the amount you can earn before your Universal Credit payments are affected. The monthly work allowances for 2024/25 are:
For every £1 that you earn over your work allowance, your Universal Credit payments will decrease by 55p. How much you need to earn before your payments stop will depend on your individual circumstances. For example, if you receive extra amounts of Universal Credit, you may be able to earn more before your payments stop.
To apply for Universal Credit, you'll need to create an online account. If you live with your partner, you'll both need to do this. You'll link your accounts together when you claim. Then, you'll need:
If you don't have these, you won't be able to apply online. Instead, you'll need to call the Universal Credit helpline on 0800 328 5644 or go to a Jobcentre to apply.
To submit your claim, you'll need to provide:
If the Universal Credit team needs more information, you may need to speak to them on the phone or face-to-face to complete your application.
Once your claim is approved, it will be backdated to the date you submitted it. So, your first Universal Credit payment may be higher than your ongoing monthly payments.
You can apply for Universal Credit if you receive any of the 'legacy benefits' that Universal Credit is replacing. However, it may be better to wait until you're asked to migrate to Universal Credit by the Department for Work and Pensions (the DWP). There are two reasons for this:
If you wait to migrate, then the DWP will make sure that neither of these things happen. They'll ensure that your payments continue throughout the migration. They'll also make sure you get 'transitional payments' to top up your Universal Credit if needed to make sure you're not worse off.
To get Universal Credit payments, you'll need to make and accept an agreement called a 'claimant commitment'. This is a statement of what you agree to do to:
What's in your claimant commitment will depend on your individual circumstances. If you live with your partner, you'll each have your own claimant commitments. If, at any point, you fail to do everything you've agreed to, your payments could be reduced or stopped.
For help with benefits, a benefit calculator could be a good starting point. These calculators can:
If you still have questions or need help applying, then you can speak to:
If you're struggling to manage your money or have debts, then help is available. You can get free, independent advice on your situation from:
Sources
Disclaimer: We make every effort to ensure that content is correct at the time of publication. Please note that information published on this website does not constitute financial advice, and we aren’t responsible for the content of any external sites.
Helen is a personal finance editor who’s spent 11 years (and counting!) in the finance industry. She creates content on everything money with the goal of getting people thinking – and talking – about their finances in ways they may not have done before.
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