Universal Credit is the UK's main means-tested benefit for working-age people. It replaced six older "legacy" benefits: tax credits ended on 5 April 2025, and DWP has been moving people from the others onto Universal Credit. Whether you are between jobs, on a low income or dealing with a change in circumstances, understanding UC is essential for your cost of living strategy.
What Benefits Does Universal Credit Replace?
Universal Credit replaced these benefits for working-age people. New claims for them are no longer possible, apart from some Housing Benefit claims (for example for most people over State Pension age and some people in supported or temporary housing).
- Income-based Jobseeker's Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit (ended 5 April 2025)
- Child Tax Credit (ended 5 April 2025)
- Housing Benefit
Who Can Claim Universal Credit?
You may be eligible if you're on a low income or out of work, aged 18 or over (some 16-17 year olds qualify), under State Pension age, living in the UK, and have less than £16,000 in savings. Couples apply jointly and both partners' income and savings count. If you have between £6,000 and £16,000 in savings, your payment is reduced.
How Much Do You Get?
UC is made up of a monthly standard allowance plus extra amounts depending on your circumstances. For 2026/27 the standard allowance is:
| Circumstances | Per month |
|---|---|
| Single, under 25 | £338.58 |
| Single, 25 or over | £424.90 |
| Couple, both under 25 | £528.34 |
| Couple, one or both 25 or over | £666.97 |
Extra elements cover children (£303.94 a month per child, or £351.88 for a first child born before 6 April 2017; the two-child limit ended on 6 April 2026), housing costs, disability or health conditions, and caring. Use a free benefits calculator linked from gov.uk for an accurate estimate.
The 5-Week Wait and Advance Payments
UC is paid monthly in arrears, so there is usually a 5-week wait for your first payment. You can ask for an advance of up to 100% of your estimated first payment, but it is a loan repaid from future payments over up to 24 months. If you can, build a small emergency fund to help bridge the gap.
Tips to Maximise Your Universal Credit
- Report changes of circumstances promptly: late reporting can mean overpayments you have to repay
- Claim Council Tax Reduction separately from your council, as it is not part of UC
- Check whether you qualify for the Warm Home Discount, free school meals, social tariffs and Help to Save
- Use the work allowance: if you have children or limited capability for work, you can earn £710 a month (or £427 if UC helps with housing costs) before UC starts to reduce
- Ask about a budgeting advance for essential costs like furniture or clothing
Frequently Asked Questions
Can I claim Universal Credit if I'm working?
Does Universal Credit affect my savings?
Can students claim Universal Credit?
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