Universal Credit What you need to know
What is Universal Credit? Universal Credit is a new benefit administered and processed by the Department for Work and Pensions. Its aim is to make the welfare system simpler by replacing six benefits and tax credits with a single monthly payment. Universal Credit is replacing: l
Housing Benefit
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Income Support
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Income-based Job Seekers Allowance
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Income-related Employment and Support Allowance
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Child Tax Credits
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Working Tax Credits
IMPORTANT: Universal Credit does not include help with your Council Tax. You must claim Council Tax Reduction separately from the Council.
How is Universal Credit different to current benefits? l
It’s paid directly to you and not your landlord
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It’s paid monthly in arrears
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It’s paid into your bank account or similar
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If you live with your partner and both claim Universal Credit you will receive one monthly payment that covers both of you
How does this affect my rent? l
If you currently receive Housing Benefit or have your Housing Benefit paid directly to your landlord it will stop once you claim Universal Credit
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Your Universal Credit payment will include an amount of money to pay your rent
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You will be responsible for paying your rent directly to your landlord yourself
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If you don’t make rent payments you could lose your home
Prioritise your rent payment You’ll soon be responsible for paying your rent yourself and will need to keep this part of the Universal Credit payment separate from your general spending money.
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When and where is this happening? l
Universal Credit was initially rolled out in November 2015 to a single postcode area in Southwark
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Universal Credit was expanded to more postcodes in January 2016 and further postcodes in March 2016
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To claim Universal Credit you must be aged over 18 but below pension credit age
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If you and your partner are above pension credit age you won’t be affected by Universal Credit
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If you already claim one of the affected benefits, you’ll continue to do so as normal and you’ll be told when Universal Credit will affect you.
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What is Universal Credit? Universal Credit is a new benefit administered and processed by the Department for Work and Pensions. Its aim is to make the welfare system simpler by replacing six benefits and tax credits with a single monthly payment. Universal Credit is replacing: l
Housing Benefit
l
Income Support
l
Income-based Job Seekers Allowance
l
Income-related Employment and Support Allowance
l
Child Tax Credits
l
Working Tax Credits
IMPORTANT: Universal Credit does not include help with your Council Tax. You must claim Council Tax Reduction separately from the Council.
How is Universal Credit different to current benefits? l
It’s paid directly to you and not your landlord
l
It’s paid monthly in arrears
l
It’s paid into your bank account or similar
l
If you live with your partner and both claim Universal Credit you will receive one monthly payment that covers both of you
Prioritise your rent payment Don’t risk losing your home because you’re missing rent payments. Even if you have other bills or debts. Make sure you prioritise your rent to avoid falling into arrears and losing your home. Your Income Officer can give you support to help you manage your rent payments - even if you’re already in debt.
Get ready for monthly payments Universal Credit will be paid monthly so if you’re used to working out your spending weekly or fortnightly, you’ll need to start managing your money across the whole month. Personal budgeting support If you need help, speak to your work coach at the Jobcentre or income officer at Southwark Council. Do it online Being online gives you access to lots of ways to save money, from cheaper energy prices to money off vouchers and comparison websites that can help you get the best deals to help your money go further.
Get access to a computer If you don’t have a computer and are unable to access the internet, ask your Jobcentre Plus office or your Income Officer for information on how you can get online or visit a Southwark Library where you can access the internet for free. Sign up for a training course If you’re worried your IT skills aren’t good enough to manage your Universal Credit online, your Jobcentre Plus office or local college should be able to help you find a course. Basic computer and internet skills support If you need help, speak to your work coach at the Jobcentre or income officer at Southwark Council. You can find places to get free online access and computer training by visiting www.ukonlinecentres.com or by visiting your local library.
For more information visit the Southwark Citizen's Advice and Money Savvy websites to get more information and help with managing your money. www.southwarkcabservice.org.uk www.moneysavvysouthwark.org.uk