Universal Credit: Expert discusses benefits of claiming
Universal Credit provides low income Britons with monthly payments to help make ends meet, which can greatly vary depending on their circ*mstances. Meeting these specific requirements and sticking to one’s claimant commitments could see Britons receiving over £6,000 every year.
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Universal Credit is a benefit for those looking for work or on a low income and mainly takes into account one’s expenses and income to decide the rate they will receive.
To claim, Britons must meet all of the below criteria:
- Live in the UK
- Aged 18 or over
- Under the state pension age
- Have £16,000 or less in money, savings and investments.
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EU, EEA or Swiss citizens staying in the UK may need settled or pre-settled status under the EU Settlement Scheme to get Universal Credit.
Additionally, claimants living with their partners will need to make a joint claim for the entire household regardless of whether their partner is actually eligible.
This means that the amount claimants receive are also impacted by their partner’s income and savings.
If only one person in a household has reached state pension age they must still claim Universal Credit as a couple although the claim will stop when both parties reach state pension age.
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Successfully claiming Universal Credit can make one eligible for other benefits and assistance (Image: GETTY)
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Britons who meet any of the following criteria whilst being in full-time education can also make their claim for Universal Credit:
- They live with a partner who is eligible for Universal Credit
- They are responsible for a child as a single person or a couple
- They reached state pension age but live with a partner who has not.
Britons under the age of 21 and studying any qualification up to or equivalent of A levels without parental support can also claim Universal Credit.
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Certain Britons can also make a claim if they are aged 16 or 17 so long as at least one of the following apply to their situation:
- They have a health condition or disability with medical evidence
- Caring for a severely disabled person
- Responsible for a child
- Living with a partner who is eligible for Universal Credit and have responsibility for a child
- Are pregnant and expecting a baby within the next 11 weeks
- They’ve had a baby in the last 15 weeks
- Do not have parental support.
Universal Credit is made up of standard allowances, which is the general rate one will receive depending on their circ*mstances, plus any extra amounts the person may qualify for.
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In terms of standard allowances, those under the age of 25 will receive £257.33 per month if they are single and £403.93 if they are in a couple and both parties are under 25.
Single claimants over the age of 25 can receive £324.84 and couples can receive £509.91.
Claimants are able to get extra amounts depending on their situation.
Having children will increase the amount claimants receive. The rate of which depends on circ*mstances such as when the child or children were born.
An additional amount is added for any disabled or severely disabled child regardless of when they were born or how many other children one has.
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FAQs
If you or your partner have £6,000 or less in personal savings this will not affect how much Universal Credit you get. This includes any savings in your Help to Save account. Your Help to Save bonuses will not affect your Universal Credit payments.
Does DWP check your savings? ›
The DWP now has the power to inspect bank accounts in order to crack down on fraudulent benefit claims, reports Birmingham Live. This controversial rule is part of the Data Protection and Digital Information Bill, which is in the process of going through the House of Commons and Lords right now.
Do benefit back payments count as savings? ›
If you get a lump sum in backdated benefits, this does not count as savings for 1 year.
How much savings are you allowed on PIP? ›
PIP is not affected by income or savings, it is not taxable and you can get it whether you are in work or not.
Does savings count towards income? ›
The IRS treats interest earned on a savings account as earned income, meaning it can be taxed. So, if you received $125 in interest on a high-yield savings account in 2023, you're required to pay taxes on that interest when you file your federal tax return for the 2023 tax year.
Does your savings affect financial aid? ›
While you may not have as much in your savings account, student assets are weighted more heavily (20% for the FAFSA), so these must be reported, too. Good Strategy: Shift Assets Shifting assets from reportable assets to non-reportable assets can impact your eligibility for financial aid.
Can Universal Credit check all my bank accounts? ›
11 December 2023: New bank account surveillance powers for DWP. The DWP is getting sweeping new powers to look into the bank accounts of people on means-tested benefits – universal credit, employment and support allowance and pension credit.
How to tell if DWP are watching you? ›
If the DWP is going to commence a formal investigation against you, they will notify you via post, telephone, or email, depending on what information they have available for you. The vast majority will receive this information via post.
What makes DWP investigate you? ›
You'll be contacted by the Department for Work and Pensions ( DWP ), HM Revenue and Customs ( HMRC ), the Defence Business Services or your local authority if you're suspected of fraud. Your benefit may be stopped while you're investigated.
Can Universal Credit see what you spend your money on? ›
It does not give DWP access to anyone's bank account or see how claimants are spending their money.
How is capital taken into account? The first £6,000 of capital (or £10,000 for claimants of some benefits if they are in a care home) is ignored and does not affect your benefit. No benefit is payable if total capital exceeds £16,000.
Why is my Universal Credit being reviewed? ›
Your Universal Credit claim might be reviewed to make sure you're getting the right payment and support. If your claim is going to be reviewed, you'll be contacted through your online account.
How much savings can I have on Universal Credit? ›
Check if your income or savings affects your payments. You'll get less Universal Credit if you get money from work or other places, or if you have more than £6,000 in savings or other investments - called 'capital'. If you have a partner you live with, their income and capital will also affect your payments.
Do I need to tell Universal Credit if I get PIP? ›
PIP and UC are completley different benefits so nothing changes to your UC when your on PIP and it doesn't matter if they know or not. PIP is all about how you manage tasks and is not means tested, whereas UC is about your medical conditions and whether or not you can work, and is means tested.
What is a capital disregard for Universal Credit? ›
'Capital disregards' are amounts of capital that are not taken into account when deciding how much Universal Credit you can get. Capital disregards include: assets of a business that is trading. premises or land you live in.
What income is disregarded for Universal Credit? ›
Income for Universal Credit purposes will be treated as earned income or unearned income. If it is not specifically included as either of these then it will be disregarded. It also includes surplus earnings.
Why are Universal Credit asking for bank statements? ›
Bank statements are requested for proof of capital/assets and sometimes for proof of income as we can see the income being paid into your bank account and accept this as evidence of the income that you receive.
What happens if you win money while on benefits in the UK? ›
you may be taken to court or asked to pay a penalty (between £350 and £5,000) your benefits may be reduced or stopped.
What is deprivation of assets for Universal Credit? ›
Deprivation can mean that someone has purposely spent or given away their capital, or failed to acquire it. The DWP must show that the claimant's significant purpose was to become entitled to universal credit or increase their entitlement, even if it was not their main purpose.
