What is Universal Credit?
Universal Credit (UC) was first introduced in 2013 and is the single biggest change to the welfare system since it began. Universal Credit is a working age benefit for people who are on a low income and under pension age; it replaces:
- Housing Benefit
- Working Tax Credit
- Child Tax Credit
- Income Support
- Income related Employment and Support Allowance (Income based ESA)
- Jobseeker’s Allowance.
Carmarthenshire is now a Universal Credit full service area. If you are in receipt of one of the above benefits, are working age and have a qualifying change of circumstances you will need to make a claim for Universal Credit. If you are a couple and one of you has reached pension age, you’ll be considered a ‘mixed age couple’ and Universal Credit will still apply. You will also need to make a claim for Universal Credit if you receive a Migration Notice letter from The Department of Work and Pensions; it is very important that you do not ignore this notice otherwise your benefits may stop.
Rather than claiming each of the above benefits individually, you will make one claim to Universal Credit.
Universal Credit will include financial support for sickness, disability, housing, children, unemployment or low-income employment.
Universal Credit does not include the following welfare benefits and you will continue to have to claim these separately:
- Child Disability Living Allowance (Child DLA)
- Personal Independence Payment (PIP)
- Child benefit
- ‘New style’ contribution-based Employment and Support Allowance (‘New style’ ESA)
How will the system change?
The following benefits will be covered under Universal Credit:
- Child Tax Credit
- Employment and Support Allowancet
- Housing Benefitt
- Income Supportt
- Working Tax Creditt
- Jobseeker’s Allowance (with some exceptions)
How will the system change?
Universal Credit is designed to make benefit payments more like a salary.
The key changes to the system are:
- All the benefits will be paid together in one monthly payment.
- Payments will be made monthly and will be made in arrears.
- If you are claiming Universal Credit as a couple, you will receive one payment between you (exceptions may apply).
- You will need a bank account (or similar) for payments to be sent to.
- Your Housing element under Universal Credit is usually paid directly to you not your landlord (exceptions apply)
- You will need to manage your Universal Credit claim online, via a journal. (Exceptions apply for those who are unable to apply online)
The biggest challenge you’ll experience is when you initially make your Universal Credit claim. You will have to wait 5 weeks from when you first make your application to receiving your first payment. It is important that you prepare for this period where you will have no income.
Universal Credit do offer new claimants the opportunity to apply for an advance payment to help to cover this period if you are experiencing financial hardship. It’s important to remember that this advance payment is an interest free loan which needs to be repaid; repayments will be deducted from your future Universal Credit payments over an agreed period.
When will I need to make a claim for Universal Credit?
Universal Credit is being introduced in stages.
The Department of Working Pensions (DWP) will write to you when it is time for you to move to Universal Credit, unless you have a qualifying change in circumstances beforehand and are in receipt of one of the benefit mentioned above.
If you receive a migration letter from DWP, it is important that you act and make an application for Universal Credit to continue receiving financial support. It is important that you make your application before the deadline date given in your letter. Your deadline date will be 3 months from the date the letter was sent out.
You may be able to get more time to make a claim if you have a good reason. You must request this before your deadline date.
What do I need to be ready for Universal Credit?
You will need to ensure access to the internet so that you can manage your claim online. If you don’t use or are unable to access the internet, let us know, as we may be able to arrange access for you.
To claim Universal Credit, you will also need a bank or credit Union account, and an active email address.
If you are unable to make an online claim for any of the reasons listed below, you will need to phone Universal Credit to ask to make a telephone claim.
- You are visually impaired.
- You have a physical or mental health illness or disability which prevents you from going online.
- You lack basic literacy skills.
- English is not your first language.
- You have legal restrictions preventing you from accessing the internet.
How to claim
You can apply for Universal Credit online via the following link Universal Credit online – Universal Credit (universal-credit.service.gov.uk)
You need to create an account to make a claim. You must complete your claim within 28 days of creating your account or you will have to start again. Your claim starts on the date you submit it in your account.
If you live with your partner, you will both need to create accounts. You’ll link them together when you claim. You cannot claim by yourself.
If you cannot claim online, you can claim by phone via the Universal Credit helpline 0800 328 5644
You’ll need to provide lots of details before you can complete your claim, so make sure you have the following information to hand to make the process a little easier for yourself.
For couples who claim, both partners will need the same information:
- Your full name, address, phone number and your email address.
- Proof of ID (passport, driving licence or EEA ID Card).
- National Insurance Number.
- Your bank details.
- Full details of your salary and any other income (including other benefits).
- Details of any savings you may have.
- Your Landlord’s (Bro Myrddin’s) address.
- How much rent and service charge you pay (you may need a copy of your contract or a recent rent statement which can be accessed via your online residents portal).
If you have children, you’ll need:
- Their details, including their Child Benefit number.
- Their childcare Provider’s name, address and registration number (if applicable)