TAX BASICS

How much Universal Credit can you get? – TaxTotal

Universal Credit is a new monthly payment for individuals of working age who are not employed now but maybe in the future. If you are 18 or over and live in the UK, have no income or very little income and are not expected to work within the next six months. Then you can claim Universal credit.

It may replace some of the benefits and tax credits you might be getting now. Benefits such as Housing, Child tax credit, Income Support, Working Tax Credit, Income-based jobseeker’s allowance and income-related employment and support allowance is replaced.

The Department for Work and Pensions (DWP) refers to them as legacy benefits, and you cannot submit a new claim for them. If you need further assistance, you must apply for Universal Credit.

Suppose you’re currently claiming legacy benefits, and nothing changes in your life. In that case, you’ll continue getting them until the DWP asks you to move to Universal Credit. 

However, if you live with someone as a couple and both of you are eligible for Universal Credit. You will receive the payment in a single bank account.

What are the Eligibility requirements for making a claim?

If you satisfy the below eligibility criteria then you can claim the Universal Credit:

  • if unemployed or on a low income job
  • you or your partner or spouse are under State Pension age
  • you’re 18 or over (there are some exceptions if you’re 16 or 17)
  • when the savings of you and your partner is less than £16,000.
  • you must live in the UK.

However, there are some scenario’s where you can claim Universal Credit if you’re 16 or 17-years-old, or when you’re studying.

How Much can you claim?

In 2015, the government introduced Universal Credit. Monthly payment is made to the unemployed and employed individuals depending on the hours worked and income earned. It’s a simple to use system with a monthly claim limit of £251 per month (£3,744 per year). However, if you have no income, your claim will be higher to reflect this. You can find more about the amount you can get on the government website. You can check your entitlement by entering your details on the website or also by calling the government helpline number at 0800 328 5644. Suppose you find the entire process a bit tedious and complicated. In that case, you can sign up for our Self-Assessment tax filing and let an expert take care of the process for you.

What are the benefits of universal credit?

Universal Credit is a new service that simplifies the benefits system for low-income families. It replaces 6 different benefits with one monthly payment. Not only is it more straightforward, but it will also be easier to receive the right level of support because it takes account of the different needs of single people and couples.

How Universal Credit works

Typically, you will get a single monthly payment to cover your living expenses. If you apply for Universal Credit as a couple, you and your spouse will get a single payment. The net pay is based on your basic standard allowance plus any additional payments that are applicable to you based on your circumstances.

You may be eligible for additional money if you:

  • take care of one or more kids
  • work while paying for childcare
  • Need assistance with housing expenses
  • are disabled or suffer from a medical condition
  • are you a caregiver for a handicapped person or the parent of a disabled kid

Who does it apply to?

The Universal Credit system is a benefit that provides monthly payments to people in low-income jobs. This benefit also replaces Jobseeker’s Allowance, Employment and Support Allowance, Income Support, Working Tax Credit and Child Tax Credit. You will receive it once a month as a single payment.

How to apply: Online at the website

Suppose you’ve used your Government Gateway or Verify account in the last year, for example, to submit a Self Assessment tax return. In that case, you may use it to establish your identity.

If you are eligible for Universal Credit, you must apply online at GOV.UK.

On the GOV.UK website, find out what information you’ll need before you begin your claim.

Do you and your partner intend to file a joint claim? Then only one of you will have to fill out the online claim form. However, that individual will need to submit information for both of you.

Objective of Universal Credit

The primary goal of Universal Credit is to make claiming social media benefits simpler and more consistent. The idea and theory behind the system is that by making people claim the benefits in a simpler way. The government could save billions. Since rather than having separate ways of claiming it, the public can claim it using a single method. Like all things there is a downside to this system as well. However, one of the downsides of the system is that it’s often difficult to understand what you’re entitled to receive and how to qualify for each one. Feel free to write to us if you have any further queries or clarifications, and we will be more than happy to help.

Sidharth Bharthan Menon
CEO, taxtotal​