Universal Credit

The system of working-age benefits and tax credits in place before the Welfare Reform Act 2012 is being replaced by Universal Credit (UC). The coalition government describes the main differences between UC and the welfare system in place before the Act began to take effect as follows:

• UC 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;

• UC will be responsive. As people on low incomes move in and out of work, they will get ongoing support, giving people more incentive to work for any period of time that work is available;

• most claimants on low incomes will still be paid UC when they first start a new job or increase their part-time hours;

• claimants will receive a payment once a month (in arrears), 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.