What is universal credit and how are the rules changing?

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Many people receiving universal credit (UC) will now have to work longer hours, as part of government plans to encourage people into employment.

However, the Turn2Us charity warned of a "drastic impact" on people with long-term health conditions, caring responsibilities or irregular incomes.

What is universal credit and what does it cost?

Universal credit is a single benefit payment for working-age people.

It was introduced to replace a range of different benefits for unemployed and low-paid people.

There were 6.4 million people on UC in January in England, Scotland and Wales, according to official government statistics. Nearly 40% of claimants have jobs.

The government is expected to spend £90bn on UC in 2024-25.

That compares with £153bn on state pensions and other benefits for pensioners, £40bn on disability benefits and £14bn on child benefit.

How are universal credit rules changing?

For UC claimants required to work, the minimum number of hours was increased from 15 to 18, on Monday 13 May.

The rule change means 180,000 people will have to work more or risk losing their benefits, the Department for Work and Pensions says.

The 18-hour minimum applies to people earning the National Living Wage (£11.44 for those aged 21 or over).

Someone earning more per hour can work fewer hours, as long as their total earnings meet a level called the Administrative Earnings Threshold (AET).

The AET now stands at £892, which is what you would earn in a month if you worked for 18 hours a week at the minimum wage.

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If a couple is earning less than £1,437 between them, they will be expected to try to increase their earnings.

Claimants already risk having their benefits reduced if they don't take steps to earn more and meet regularly with a work coach.

Certain groups will remain exempt from sanctions - including people who can't work because of long-term sickness, or a disability.

Turn2Us has claimed government plans to speed up the roll-out of UC - and bring down spending on welfare - could affect vulnerable people disproportionately.

The government says its plans are necessary to get more people back in work and boost the economy, as levels of long-term sickness have increased.

It claims that changes it is phasing in for the welfare system as a whole could save £4bn a year.

Labour, however, says the Conservatives' failure to tackle problems facing the NHS, such as long waiting lists, should be prioritised instead.

How much is universal credit worth?

The amount you get depends on whether you are single, or claiming as a couple, and your age. There is one standard allowance per household:

  • Single claimant under 25: £311.68 a month

  • Single claimant 25 or over: £393.45 a month

  • Joint claimants both under 25: £489.23 a month

  • Joint claimants either aged 25 or over: £617.60 a month

You may be entitled to extra money if, for example, you have children.

Extra money may also be available for rent payments, which works in different ways across the UK.

You may also be able to claim a reduction in council tax while on UC, or assistance to pay your mortgage, although you would need to meet strict criteria.

What is the universal credit taper rate?

Under the UC taper, payments are reduced as claimants earn more. The current taper "rate" is 55%.

This means that for every additional £1 earned over the work allowance, UC payments are reduced by 55p.

Why has universal credit proved controversial?

It is complicated to work out exactly how much UC you might receive.

Some people have found they are entitled to less money under UC than they would have been under the previous benefit arrangements.

Those with £16,000 or more in savings are not eligible.

It usually takes about five weeks from the date of claiming to receiving a first payment, although an advance loan may be possible.

An application for UC may put a stop to any tax credits you receive, even if it proves to be unsuccessful.

What other benefits are still available?

The main benefit for anyone losing their job after a period in work is new-style jobseeker's allowance (JSA).

This is worth £71.70 a week if you are under 25, or £90.50 a week if you are 25 or over.

You can get this for up to six months and it will be paid into your bank, building society, or credit union account every two weeks.

Unlike UC, your partner's or spouse's income will not affect your claim, although you may get less if you have part-time earnings or a pension.

You may be able to claim new-style JSA as well as universal credit.

Where can I go for help?

Places offering support include:

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