Universal Credit — Eligibility, Rates & How to Apply

What is Universal Credit?

A monthly payment for people on a low income or out of work, replacing six older means-tested benefits and tax credits. It's paid monthly (or twice-monthly in Scotland, by request) directly into your bank account.

Who may qualify

• You're aged 18 or over (16-17 year olds can claim in some circumstances — a health condition, caring responsibilities, pregnancy, or lacking parental support)
• You and your partner (if you have one) are both under State Pension age — if only one of you has reached it, you can usually still claim as a couple
• You live in the UK
• You and your partner have combined savings/capital under £16,000

Standard allowance (monthly)

This is the base amount only — most households get more on top via the child element, housing costs element, disability/carer elements, or childcare costs element, where they apply.

Income and savings rules

Earned income reduces your Universal Credit via the taper: 55p lost for every £1 earned above your work allowance. The work allowance — only available if you have a child or limited capability for work — is £427/month if your award includes housing support, or £710/month if it doesn't. Without a work allowance, the taper applies from the first £1 you earn.

Savings and capital of £6,000 or less don't affect your award. Between £6,000 and £16,000, each £250 band (or part of one) reduces your monthly payment by £4.35. £16,000 or more and you generally can't get Universal Credit at all.

How it's calculated

DWP starts with your standard allowance, adds any elements you qualify for (children, housing, disability, carer, childcare), then deducts the capital taper (if applicable) and the earnings taper (if applicable). The result is your monthly Universal Credit payment. Because this depends on several interacting elements, our Benefits Checker only estimates the standard allowance minus the capital taper — it deliberately doesn't guess your earnings-taper reduction, since that needs your exact work allowance category.

How to apply

You apply online via your GOV.UK account. You'll need your bank details, an email address, and information about your housing, income and savings. Most new claimants also need a phone or in-person interview at a Jobcentre Plus soon after applying. Payments typically start five weeks after your application (an advance is available if you can't wait).