Universal Credit Explained

In this video, we explain how the benefits system is changing from separate benefits payments to Universal Credit, and the impact this may have on you.
0:01
The Benefit System is changing. Old benefits: Housing Benefit; Tax Credits; Income Support, Income-base Job Seekers Allowance and Income related Employment Support Allowance are ending for most working-age people.
If you are receiving any of these, the government will be sending you a ‘Migration Letter’ to move you onto Universal Credit, or in rare cases, Pension Credit.
If you get a Migration Letter, you have 3 months to apply for Universal Credit before your existing benefits stop.
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If you live in ‘supported’, or ‘temporary’ accommodation, these changes may not affect you.
Many are better off on Universal Credit. However, if you would be worse off you should get ‘Transitional Protection’. This is a top-up to make sure you are not receiving less than before. This lasts until your rate of entitlement reaches the value of what you were receiving before, so you are not worse off.
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Timing of the application for Universal Credit can make a difference to your money.
Universal Credit will be made up of your personal allowance based upon your families’ circumstances.
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This will include any disability or child related enhancements, but not Personal Independence payment or Disability Living Allowance as they remain independent of Universal Credit and can be paid in addition. You may also be entitled to support with your rent and this will show on your journal as a separate payment. Any earnings will be taken into account during your assessment period and reflected in your entitlement..
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Universal Credit is paid to you,
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so you will need to arrange to pay your rent directly to Sanctuary from your total income.
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You can pay by Direct Debit, Standing Order and payment card - please speak to us to discuss which works best for you.
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Your rent is due weekly on Mondays, or if monthly, on the first of each month.
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Universal Credit is paid monthly, in arrears. You need to pay enough rent so that you are not in arrears in between your payments.
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If you are finding it difficult to pay the full rent to us during the change to Universal Credit, you would be able to do this using an advance.
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The Department for Work and Pensions usually include your rent in the Universal Credit advance. You must use this to pay your rent. They will deduct this advance from your Universal Credit in equal amounts over the following 24 months.
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It is important to act when you get your ‘Migration Letter’. Failure to act in getting your benefits addressed quickly, may result in losing money you are entitled to and may put your tenancy at risk.
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You can apply for Universal Credit before your Migration Letter as you may be better off,
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however, we recommend you seek advice first as you would not be eligible for Transitional Protection if you have not had your migration letter.
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If you make your claim and your Universal Credit entitlement is lower, you won’t be able to go back to the old benefits.
When you get your ‘Migration Letter’ don’t panic! We are here to help. Call 0800 916 1516 where our advisors will gladly offer you telephone support or can arrange for a home visit if needed.