When I went on maternity leave, my income dropped massively. I had to claim Universal Credit for the first time, and I had absolutely no idea what I was doing.

The whole system seemed deliberately confusing. The GOV.UK website had information but it was full of jargon. I didn’t know if I was entitled to it, how much I’d get, or what I needed to do.

I eventually figured it out, got my claim sorted, and received payments that genuinely helped me get through maternity leave.

Now I’m going to explain Universal Credit in actual plain English. Everything you need to know as a complete beginner.

Let’s get into it.

What Is Universal Credit?

Universal Credit (UC) is a monthly payment from the Department for Work and Pensions (DWP) to help with living costs.

It replaced six older benefits:

• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Working Tax Credit
• Child Tax Credit
• Housing Benefit

Instead of claiming multiple benefits separately, you now claim one payment that covers everything.

Universal Credit is paid monthly – or twice a month for some people in Scotland.

Who Can Claim Universal Credit?

You can claim Universal Credit if you’re:

• Aged 18 or over (some under-18s can claim if they meet certain criteria)
• Under State Pension age
• Living in the UK
• You or your partner have £16,000 or less in savings

You can claim if you’re:

• Out of work
• In work but on a low income
• Unable to work due to illness or disability
• A carer
• Looking after children

The key thing: You don’t have to be unemployed in order to claim the credit, and you might still be entitled to the benefit if you currently receive tax credits or financial assistance with your housing costs.

How Much Universal Credit Will I Get?

Your Universal Credit payment is made up of:

1. Standard allowance (everyone gets this)
2. Extra amounts depending on your circumstances

Standard Allowance 2025/26

Below are the monthly standard allowance rates for 2025/26:

Single claimants:

• Under 25: £31.6.98 per month
• 25 or over: £401.86 per month

Couples (joint claim):

• Both under 25: £497.24 per month
• One or both 25 or over: £628.10 per month

Extra Amounts You Might Get

For children:

• First child (born before 6 April 2017): £333.33 per month
• First child (born on or after 6 April 2017): £287.92 per month
• Second child and subsequent children: £287.92 per month each

For housing:

• The amount of rent you pay (up to a certain limit)

For childcare:

• Up to 85% of childcare costs
• Maximum £1,014.63 per month for one child
• Maximum £1,739.37 per month for two or more children

If you have a disability or health condition:

• Limited capability for work: £156.11 per month
• Limited capability for work and work-related activity: £416.19 per month

If you’re a carer:

• Carer element: £198.31 per month

Example calculations:

Single person, 28 years old, no children, paying £600/month rent:

• Standard allowance: £401.86
• Housing element: £600
• Total: £1,001.86 per month

Couple, both 30+, two children, paying £800/month rent, one works:

• Standard allowance: £628.10
• First child: £287.92
• Second child: £287.92
• Housing element: £800
• Total: £2,003.94 per month (before earnings deduction)

How Universal Credit Is Reduced If You Work

Universal Credit doesn’t stop just because you work. It’s designed to top up low earnings.

Your Universal Credit payment will only reduce by 55p for every £1 you earn over your allowance.

This is called the “taper rate” of 55%.

Work allowances 2025/26:

Here are the monthly work allowances for the 2025/26 tax year (until 5 April 2026): £411 if your Universal Credit payment includes housing costs, or £631 if it doesn’t.

Example:

You get Universal Credit and earn £800 per month from work. Your work allowance is £411.

£800 earnings – £411 work allowance = £389 over the allowance

£389 x 55% = £213.95 reduction

Your Universal Credit will reduce by £213.95.

How Savings Affect Universal Credit

If you and your partner have savings or investments worth: £6,000 or under, your Universal Credit payment won’t change; £6,001 to £16,000, your payment will go down the more savings you have.

For every £250 (or part of £250) you have between £6,000 and £16,000, your Universal Credit is reduced by £4.35 per month.

Example:

You have £8,000 in savings. £8,000 – £6,000 = £2,000 over the limit £2,000 ÷ £250 = 8 x £4.35 = £34.80 reduction per month

If you have over £16,000, you can’t claim Universal Credit at all.

How to Apply for Universal Credit

The application is done online at GOV.UK/apply-universal-credit.

What you’ll need:

• Email address
• Bank account details
• National Insurance number
• Details of your housing costs (rent, service charges)
• Details of any savings or investments
• Details of any income
• Details of childcare costs (if claiming)

The process:

1. Create an account on the GOV.UK Universal Credit website
2. Fill in the online form (takes about 40 minutes)
3. Verify your identity (you’ll be asked to provide ID)
4. Agree to your claimant commitment
5. Wait for your first payment

More detailed instructions in my guide on how to apply for Universal Credit [link when you write post 3].

When Will I Get Paid?

Universal Credit is paid monthly, directly into a claimant’s bank or building society account.

The waiting time:

One of the most controversial aspects of Universal Credit is the five-week waiting period before claimants receive their first payment.

This is because:

• Week 1-4: Assessment period
• Week 5: Processing
• Week 6: Payment arrives

If you can’t wait 5 weeks:

You can request an Advance Payment. This is a loan you’ll pay back from future Universal Credit payments.

Maximum advance: Up to 100% of your estimated first payment.

Your Claimant Commitment

To get Universal Credit, you must meet the conditions set out in your ‘claimant commitment’. For example, agreeing to apply for a certain number of jobs and attending training or work preparation sessions.

Your commitment depends on your circumstances:

If you’re unemployed:

• Apply for jobs
• Attend work-focused interviews
• Accept suitable job offers
• Improve your CV
• Attend training

If you’re working:

• Increase your hours (if possible)
• Look for better-paid work (sometimes)

If you have caring responsibilities or health conditions:

• Your requirements will be reduced or removed

What Happens If You Don’t Meet Your Commitment?

If you don’t, you might get a penalty known as a sanction. This means your Universal Credit may reduce or stop for a while.

Sanctions can be:

• Low level: Reduction for 13 weeks
• Medium level: Reduction for 26 weeks
• High level: Reduction for 156 weeks (3 years)

If you’re sanctioned, get help from Citizens Advice immediately.

Universal Credit Changes Coming in 2025/26

Important changes are happening:

The Universal Credit Act 2025 legislated for changes which will ‘rebalance’ UC rates from April 2026 by increasing the basic standard allowance that all claimants receive, while reducing the additional payments for most claimants newly found to have disabilities and health conditions that affect their capability for work.

This affects the Limited Capability for Work and Work-Related Activity (LCWRA) element.

What this means:

• Standard allowance will increase more than inflation
• LCWRA element will reduce for new claimants from April 2026
• Existing LCWRA claimants will be protected

Common Universal Credit Mistakes to Avoid

Mistake 1: Not reporting changes

You MUST report:

• Changes in earnings
• Changes in rent
• Moving house
• Starting or stopping work
• Changes in savings
• Changes in childcare costs
• Someone moving in or out

Report changes in your online journal within one month.

Mistake 2: Missing appointments

Missing a work coach appointment without good reason can lead to sanctions.

If you can’t attend, contact your work coach immediately.

Mistake 3: Not claiming other benefits

Universal Credit doesn’t include:

• Council Tax Reduction (apply separately to your council)
• Free school meals (apply through your child’s school)
• Healthy Start vouchers (apply separately)

Mistake 4: Not checking your calculation

Your payment amount is shown in your online journal. Check it’s correct.

If you think it’s wrong, contact your work coach or call the Universal Credit helpline.

Mistake 5: Not getting help when you need it

If you’re struggling with your claim, get free help from:

• Citizens Advice
• Local welfare rights services
• Turn2Us

Universal Credit and Other Benefits

Benefits you CAN’T claim with Universal Credit:

• Housing Benefit
• Income Support
• income-based JSA
• income-related ESA
• Tax credits

Benefits you CAN claim with Universal Credit:

• Personal Independence Payment (PIP)
• Disability Living Allowance (DLA)
• Carer’s Allowance
• Child Benefit
• Maternity Allowance
• Contribution-based JSA
• Contribution-based ESA

Is Universal Credit Worth Claiming?

Yes, if you’re entitled to it.

The average monthly UC payment stands at £630, though this varies hugely depending on your circumstances.

Even if you’re working, you might be entitled to Universal Credit if:

• You’re on a low income
• You have children
• You pay rent
• You have childcare costs

Use the benefits calculator on Turn2Us or EntitledTo to check what you could get.

Getting Help with Your Universal Credit Claim

Free help available from:

Citizens Advice: www.citizensadvice.org.uk

• Help with claims
• Dealing with problems
• Understanding your rights

Turn2Us: www.turn2us.org.uk

• Benefits calculator
• Grant finder
• Advice

StepChange: www.stepchange.org

• If Universal Credit isn’t enough and you’re in debt

Universal Credit Helpline: 0800 328 5644 Monday to Friday, 8am to 6pm

Final Thoughts

Universal Credit is confusing at first but it’s not as complicated as it seems once you understand the basics.

The key things to remember:

• You can claim even if you’re working
• The amount depends on your circumstances
• You must meet your claimant commitment
• Report all changes
• It takes 5 weeks for your first payment
• Get an advance if you can’t wait

If you’re entitled to it, claim it. That’s what it’s there for.

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Helpful Resources:

• GOV.UK Universal Credit – Official information
• Citizens Advice – Free help
• Turn2Us – Benefits calculator
• MoneyHelper – Money guidance

Last updated: October 2025

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