Universal Credits

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Universal Credit Intro & Rates

Universal Credit is a new single payment for people who are looking for work or are on a low income.

Universal Credit will help claimants and their families to become more independent and will simplify the benefits system by bringing together a range of working-age benefits into a single payment.

It was introduced in October 2013 and will be rolled out nationally at a progressive rate according to HMRC. This is expected to be completed by the end of 2017 and will replace:

  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Child Tax Credits
  • Working Tax Credits
  • Housing Benefit

The differences between Universal Credit and the current system

The main differences between Universal Credit and the current welfare system are:

  • Universal Credit will be available to people who are in work and on a low income, as well as to those who are out of work
  • Most people will apply online and manage their claim through an online account
  • Universal Credit will be responsive – as people on low incomes move in and out of work, they’ll get ongoing support, giving people more incentive to work for any period of time that is available
  • Most claimants on low incomes will still be paid Universal Credit when they first start a new job or increase their part-time hours
  • Claimants will receive just 1 monthly payment, paid into a bank account in the same way as a monthly salary
  • Support with housing costs will go direct to the claimant as part of their monthly payment

Universal Credit Rates 2017 /2018 (Monthly) -2018/2019 (Monthly)

Standard Allowances

Single claimant aged under 25: £251.77

– £251.77

Single claimant aged 25 or over: £317.82

– £317.82

Joint claimants both aged under 25: £395.20

– £395.20

Joint claimants either aged 25 or over: £498.89 – £498.89

Child Element

First child or qualifying young person: £277.08 -£277.08 (born before 6 April 2017) £231.67

(born on or after 6 April 2017)

Second and each subsequent child or qualifying young person: £231.67 – £231.67

Additional amount for disabled child or qualifying young person

Low rate: £126.11 – £126.11 – child in receipt of DLA mobility or care (excluding high rate care component or registered blind)

High rate: £372.30 – £383.86 – child in receipt of high rate care component DLA or registered blind

Capability for Work Element

Limited capability for work (LCW): £126.11 –


Limited capability for work and work-related activity (LCWRA): £318.76 – £328.32

Carer Element

Caring for a severely disabled person for at least 35 hours a week: £151.89 – £156.45

You do not have to claim Carer’s Allowance to get the carer element.

Childcare Costs Element

70% of relevant childcare costs up to:

Maximum amount for one child – £646.35 –


Maximum amount for two or more children –

£1, 108.04 – £1, 108.04

Housing Costs Element

Can cover:

  • Eligible rent payments
  • Certain service charges
  • Mortgage interest.

There is a qualifying period of three months before you can be paid this element. You will not be paid a housing element if you are in paid work.

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

Related pages:

Get further information from the following pages;

Tax Credits

Income Tax Rates

Income Tax Allowances

Related Blogs:

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