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Universal Credit: The Requirements You Need to Fulfil

By IntFormalities
Updated on December 17, 2023
Estimated reading time: 6 minutes

In today’s challenging economic landscape, many are feeling the pinch of inflation and rising costs of energy bills. Universal Credit stands out as a significant government support system, offering a financial lifeline to those in need. In this article, we’ll discuss how Universal Credit works, the eligibility criteria, and its potential impact on your financial well-being. Discover if this benefit could be the key to easing your financial burdens in these testing times.

How To Claim Universal Credit in the UK
Universal Credit supports people with low income no job or inability to work due to illness or disability aiding with living costs

What Is Universal Credit?

Universal Credit is a UK government benefit designed to support individuals with low or no income, including those who are unable to work. It offers regular payments, either monthly or bi-weekly, directly to recipients’ accounts. This assistance helps cover essential living costs and bills, providing a crucial financial safety net for those in need.

Who Qualifies for Universal Credit?

To qualify for Universal Credit, you must meet specific criteria:

  • Reside in the UK
  • Be at least 18 years old (though there are some exceptions)
  • Be under State Pension age
  • Have savings or investments that do not exceed £16,00

Eligibility extends to students under 21 without parental support, individuals responsible for a child, those living with an eligible partner, persons of pension credit age, or those with a disability. EU, EEA, or Swiss citizens may also qualify. Universal Credit supports people with low income, no job, or inability to work due to illness or disability, aiding with living costs.

Can You Claim Universal Credit If You’re Self-employed?

Yes. Self-employed individuals in the UK can apply for Universal Credit. To do so, they need to demonstrate that self-employment is their main source of income. This involves providing tax returns, account details, business plans, customer and supplier lists, receipts, invoices, marketing materials, and their Unique Taxpayer Reference. Those who are self-employed but facing business losses can also apply, with benefits calculated based on their employment income.

A ‘start-up period’ is available for new businesses, typically covering the first 12 months.

How To Apply for Universal Credit

To apply for Universal Credit, check your eligibility and apply online any time of year via the official UC website. Creating an account is required for the application process. After setting up your account, answer all questions truthfully, attach the necessary documents, and submit your application.

The Department for Work and Pensions administers Universal Credit. For assistance or reapplication queries, use the universal helpline or the ‘help to claim’ service.

What Documents Do I Need To Claim Universal Credit?

For your Universal Credit application, you’ll need to provide several key documents:

  • An email address
  • A contact number
  • Details of your bank, building society, or credit union
  • A form of ID, like a debit/credit card, or pay slip
  • Proof of rent
  • Evidence of any disability or health condition
  • Proof of any savings and investments

Designed to assist individuals and families with low income, joblessness, or inability to work, Universal Credit plays a pivotal role in the UK’s social welfare landscape, ensuring that essential living costs are more manageable for those in need.

What Happens If Your Universal Credit Claim Gets Rejected?

Every application for Universal Credit is thoroughly evaluated to determine eligibility. If your application is rejected, you have the option to reapply or appeal the decision. For guidance on these processes, contact the Universal Credit helpline for assistance.

How Much Universal Credit Will I Get?

The amount of Universal Credit received varies based on individual circumstances. The payment is determined by various factors, including age, whether you have children, disabilities, housing costs, and income level. The basic amount, known as the standard allowance, differs for single people and couples, and is further adjusted based on age:

How much is the standard allowance in 2023?

Additional amounts may be available for those with children, disabilities, or certain housing costs. It’s important to note that earnings and other income can affect the amount of Universal Credit you receive. Once your application is approved, the funds will be deposited into your specified bank, building society, or credit union account.

To estimate how much additional Universal Credit ammounts you can receive, use the benefits calculator available online.

Can Universal Credit Be Taken Away?

You can lose access to this help if you report having an increase in your income or a change in circumstances. Suppose you are already receiving other benefits from the government. In that case, you should note that they automatically cease to be available as soon as you apply for UC, even if the application isn’t approved.

How Long Does It Take for Universal Credit To Be Approved?

Once your application is submitted, the processing time typically spans five weeks. The Department of Work and Pensions dedicates four weeks to assess your eligibility and, upon approval, disburses the funds within seven days. You’ll be assigned a universal credit number for future reference

How Long Can You Stay on Universal Credit?

You will continue to receive Universal Credit until your earnings are high enough, at which point your payments will stop. That amount will depend on your circumstances.

What documents do I need to show for Universal Credit?
After setting up your account answer all questions truthfully attach the necessary documents and submit your application

Getting Help with Your Living Costs

Universal Credit offers vital support to those below pensionable age in the UK, including citizens of the EU, EEA, and Switzerland. It provides financial assistance to individuals struggling with low income, unemployment, or inability to work. The program adjusts its aid based on individual needs, covering everything from living expenses to support for self-employed individuals. This makes Universal Credit a cornerstone of the UK’s social welfare system, offering a crucial safety net for those facing economic challenges

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