A Universal Credit is a social security benefit which was introduced in the year 2013, with the intention to replace six benefits, namely: Income Based Jobseeker’s Allowance, Housing Benefit, Working Tax Credit, Child Tax Credit, Income Based Employment & Support Allowance and Income Support. All the six benefits were means tested benefits i.e. means which was a way to determine whether an individual or family is eligible to sustain on their own or they would need government assistance.
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Universal Credit was announced by Work and Pensions Secretary Iain Duncan Smith at the Conservative Party Annual Conference in 2010 with the intention to bring fairness and simplicity to the British Social Security System; however it was implemented in the year 2013 in stages i.e. it affects people at different times depending on where they are (location wise) and their present circumstances.
The main idea behind designing this unique benefit system was to help and support people their basic living expenses and housing costs, especially those who either have low income or less income. Universal credit system is different from other benefits system because firstly, it is on a monthly payment system and secondly it is administered by one department, which is Department of Work and Pensions, unlike other benefits which are paid by a range of different departments.
Universal Credit, replaced six means tested benefits and based on your circumstances, you can claim for the same. It is a monthly payment system and your share of the universal credit will depend on your situation like your present income, how many children you have etc.
In principle, there are mainly four types of conditionality for the claimants, such as if you are looking for a full-time work or if you are not able to find a full time work, if you are single or married and your age and you can claim Universal Credit if you live in England, Scotland or Wales. It is yet to be introduced in Northern Ireland and is expected to be implemented there in September 2017.
Universal Credit is payable to people who are out of work, including those who are looking for work and those who are out of work and are unable to work because of illness, disability or any other reasonable reasons. As mentioned before, Universal Benefit is rolled out in stages and your share of the same depends on the claimant group you belong to. There are basically four such groups, such as:
And,
So, in case you are already getting these above benefits, your Job Centre will update you when to move to Universal Credit and as soon as you shift to it, the other benefits will stop, and at times, other benefits might stop even before Universal Credit benefits start to kick in. However, in case you do not have enough funds at your end, you can consult your local Job Centre for an advance payment and repay it once you get Universal Credit Benefit.
In case you are claiming for the Universal Credit for the first time, it will take up to at least 7 days before you get your benefit. These 7 days are also called as waiting days and the seventh day will be the day on which your benefit will be paid to you on every month and is known as assessment date and since universal benefit is a monthly payment arrear, so it would take one calendar month from the assessment date for the benefit to reach your account.
This period is also called as assessment period. After you have made your claim, it could take up to six weeks before your benefit is credited to your account. So, you must start your claim for the Universal Credit as soon as you become eligible for the same.
However, if you have applied for the universal credit benefit within the past six months, these 7 days waiting period is not applicable for you. This period is also not applicable in case:
How much you will get as Universal Credit depends on various factors like your present circumstances, your present income, number of children you have etc. However, there is a standard allowance allocated under specific circumstances header for universal benefit. Apart from standard allowance, you may get extra amounts depending on your eligibility.
Apart from standard allowance and extra amounts, you could also get universal credit to help you with your housing costs which can cover: rent, mortgage interest, some service charges, interest on a loan secured against your home. However, the eligibility for the same will depend on your present circumstances and your age.
In case you are working, your Universal Credit Benefit will reduce gradually in case you start to earn more i.e. for every £1 that you earn, your Universal Credit will be reduced by 63p and this is called as Work Allowance, which in turn will affect any money you might be getting for your housing costs.
However, in case of any change in your circumstances, whether for good or bad, should be reported to DWP at the earliest. Otherwise, chances of your benefit getting reduced or stopped are quite higher. Change in the circumstances could be anything like:
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By logging into your Universal Credit account, you can do the following:
You will be required to provide username and password you set up when you applied for Universal Credit. If you don’t have these details contact your Jobcentre Plus.
Pension Credit was introduced in the United Kingdom in the year 2003 by then Chancellor of the Exchequer Gordon Brown with the intention to help those who are retired and are not very well to do. It was intended to supplement the UK State Pension and has two elements: Guarantee Credit and Savings Credit and you don’t pay tax on Pension Credit. However, if you are registered for Self-Assessment, you have to update the same to the Pension Service because it affects how much pension credit you will get.
Guarantee Credit: Guarantee Credit, as its name suggests, is a guaranteed, income-based credit which is paid to the applicant if his income, along with this partner’s income is below a certain level. The minimum age to claim for guarantee credit is 62 at present; however it is expected to be 65 by April 2020.
For those who are single, guarantee credit is £148.35 per week whereas for a couple is £226.50 per week.
Savings Credit: Saving Credit is an inverse means-tested benefit which means an individual will get more amounts in their savings credit if their private pension income is high. So, it is basically an additional benefit to those who are not necessarily well off but have done their part by savings or a personal pension and also they may not qualify for the full guarantee credit.
The savings credit is up to £13.20 a week for a single person whereas it is £14.90 for married couples and civil partners. In case, you have reached your pension age on or after 6th April 2016, you might not be eligible for this particular credit.
To calculate your pension credit, you would need following details for self and your partner, in case you have one:
You can go to the government website to calculate your pension credit: Click here
However, you cannot use the calculator, in case you or your partner:
When you apply for the Pension Credit your income is worked out and it will include the following:
However, while calculating your pension credit following factors will not be included:
For the Guarantee Credit component of the Pension Credit, one must be a resident of Great Britain and must have reached the pension qualifying age and for the Savings Credit component, you or your partner must be of 65 years or more.
The best way to apply for the Pension Credit is by telephone. In case you are not medically fit to make the phone call, a friend or a family member could do this for you. But it is recommended for you to be there when they are making the phone call because they would need following information during the phone call, such as:
The earliest you can start to claim your Pension Credit is 4 months before you reach Pension Credit Qualifying age and once you reach that age, you can claim anytime , however your claims can only be backdated 3 months and in case you disagree with the money you have received as Pension Credit, you can ask for mandatory reconsideration and in case you are not satisfied after that, you can further appeal to the Social Security and Child Support Tribunal
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