Overview of universal credit
An overview of universal credit including information about its administration and roll out.
Universal credit replaces six other benefits and is intended to cover both living expenses and accommodation costs for those who are entitled.
If advisers are uncertain about any benefit issues they can contact CPAG's advice line.
Administration of universal credit
Universal credit is administered by the Department of Work and Pensions (DWP). The DWP has published its Advice for Decision Making (ADM) to provide guidance on universal credit. Advisers may find it helpful to consult the guidance.Benefits to be replaced
From April 2013, universal credit started to replace the following means-tested benefits for universal credit claimants: [1]
housing benefit (although in some circumstances a claimant can receive both universal credit and housing benefit, see 'Excluded payments' on the page Payment condition)
income-based jobseeker's allowance (JSA)
income-related employment and support allowance (ESA)
income support (including support for mortgage interest)
child tax credit
working tax credit.
Other benefits are unaffected, including:
disability living allowance (until replaced by personal independence payment)
contribution-based JSA
contribution-based ESA
carer's allowance
child benefit.
However, some of these benefits will count as 'unearned income' (for more on this, see ‘How to calculate universal credit').
Full service and live service areas
The roll out of full service UC was completed by the end of December 2018. This means that no new claims can now be made for legacy benefits in any part of the country (apart from mixed age pension couples and applicants with more than two children). DWP guidance explains which were the last postcode areas to move to full service. A list of local authorities and jobcentre areas and the date on which they transitioned to the full universal credit service is available from the DWP.
Migration of claimants onto universal credit
Claimants of legacy benefits will be transferred ('migrated') to universal credit after the full service has been brought in to all areas. The migration will require legacy benefit claimants to make a claim for universal credit. For more information about the migration process, see Migration and transitional protection.
The DWP has published HB Circular A7/2018 providing guidance for local authorities in full service areas setting out the circumstances when a:
new universal credit claim is required
housing benefit claim can remain in payment following a change of address
new housing benefit claim may be accepted.
Universal credit for homeless people and people at risk of homelessness
The DWP has published a guide to universal credit for homeless people and those at risk of homelessness, which gathers together advice on issues that may particularly affect homeless people such as how UC can be paid to people without bank accounts, how to claim without identification and 'easements' which allow the work related conditions on a UC claim to be lifted for a short time to enable a person to find accommodation. It is aimed at organisations who assist homeless people and those at risk of homelessness.
Last updated: 18 December 2020