Understanding the benefit system isn’t easy
First things first let's find out if you're claiming the correct benefits. Use our benefits calculator below to check what you're entitled to.
Universal Credit is a means-tested benefit for people on a low income, out of work or who cannot work due to sickness or caring responsibilities.
It is being rolled out across the country and will replace six legacy benefits: Housing Benefit, Working Tax Credits, Child Tax Credits, Income Based Job Seekers Allowance, Income Related Employment and Support Allowance and Income Support.
It is paid monthly, in arrears, into your bank account and includes your rent.
Before making a claim for Universal Credit contact our Money Advice Team. They will check how much you’re entitled to, to make sure you won’t be worse off under Universal Credit.
Housing Systems have pulled together an easy-to-understand document that helps to explain Universal Credit.
Managed migration’ is the final phase of the rollout of Universal Credit, when the DWP is gradually contacting people who are still claiming legacy benefits (Income Support, Income Related ESA, Income Based JSA, Tax Credits and Housing Benefit) and inviting them to claim Universal Credit instead.
The DWP's current plan is to have all households that claim legacy benefits to be moved to Universal Credit by the end of 2029:
- 2023/24 - Tax Credit only claimants
- 2024/25 - Income-Related ESA with Tax Credits, Income Support, Income Based Job Seekers Allowance, Housing Benefit only or with Tax Credits
- 2028/29 - All other Income-Related ESA cases
You will receive a letter, called a ‘migration notice’ telling you that Universal Credit is going to replace your existing benefits – do not ignore this letter.
This letter means that any legacy benefits you are getting will be stopped.
You have three months from the date of the letter to claim Universal Credit. This is your ‘deadline day’. You must claim UC by this date if you wish to continue to receive the financial support you need.
If you claim UC by your deadline day then you should not see any gap between your legacy benefits ending and your UC starting, and you will receive any ‘transitional protection’ (This means that to start off, most people will be no worse off when you transfer across onto UC.)
If you miss your deadline day you may have another month to make your claim, this is called the final deadline day.
Before claiming, please consider when the best time to claim it is, to help you maximise your benefit entitlement. For example it may be best to make the claim just after you receive your Tax Credits payment. Contact our Money Advice Team if you would like further information or support making the claim.
The State Pension age is 66 but is rising to 67 in the future, and likely again to 68. You must apply for a State Pension as it’s not paid automatically. If you’re eligible you will be sent a letter around three months before your retirement date asking if you want to claim.
Click here to check your State Pension age and find out more
Pension Credit is a means tested benefit for people of pension age, which guarantees you a minimum level of income by topping up your State Pension.
Housing Benefit is a means tested benefit paid to claimants to help pay for your rent. It might be available to you if you have a low income or claim other benefits. The amount you receive depends on your income.
Housing Benefit can only be claimed by people of State Pension age or people in certain types of supported accommodation. Everyone else must claim help with housing costs through Universal Credit.
To claim Housing Benefit you’ll need to contact your local authority.
For people in social housing when calculating a claimants entitlement to Housing Benefit or the housing costs element of Universal Credit they are allowed a set number of bedroom depending upon the number of people living in the property.
If you have any spare bedrooms, you will be classed as ‘under occupying’ and will have your Housing Benefit or Universal Credit reduced. For one spare bedroom it is reduced by 14%. For two or more spare bedrooms it’s 25%. This is more commonly known as the bedroom tax.
If you’re affected by the bedroom tax you may be able to get a DHP from your local authority towards your reduced income from Housing Benefit or Universal Credit. However, this is not automatic as it is a discretionary payment. Most DHPs are only paid for a limited time and you’re expected to look for accommodation with less bedrooms.
To claim Under Occupancy and Discretionary Housing Payments you’ll need to contact your local authority.
This is a non-means tested benefit for working age people who have a disability or health condition which means you struggle with mobility or care. It’s split into two parts:
- Daily Living component – for claimants with care needs. There is a standard rate and an enhanced rate. An award of the daily living component may increase your entitlement to other means tested benefits.
- Mobility component – for claimants with mobility needs. There is a standard rate and an enhanced rate.
An award of PIP does not reduce your other benefits and depending on your circumstances, can also increase how much you receive for your other benefits.
To claim PIP, contact the Department for Work and Pensions. There is also a medical assessment.
This is a non-means tested benefit for claimants above state pension age who have a care need. There is no mobility element of this benefit.
There is a low rate and a high rate. The low rate is paid to people who need extra support with their care during the day, and the high rate to people who need extra support both day and night.
If you get of PIP when you reach state pension age you don’t need to make a claim for Attendance Allowance. Your PIP will continue to be paid.
To claim Attendance Allowance, contact the Department for Work and Pensions. There is no medical assessment.
Disability Living Allowance has been replaced by PIP for people of working age and most people have been transferred to PIP. The only people who can make a new claim for DLA are children under 16 years old.
It’s split into two parts:
- The 'care element'. There are three levels, low, middle and high.
- The 'mobility element'. There are two levels, low and high.
To claim Disability Living Allowance, contact the Department for Work and Pensions.
If you care for someone at least 35 hours a week you may be able to claim Carers Allowance. However, in order to claim you:
- Must not earn more than £132 a week after tax
- The person you care for must receive certain disability benefits,
We recommend getting advice before claiming Carer’s Allowance, as the person you care for might have their own benefits reduced if you are successful in claiming Carer’s Allowance.
You can apply for New Style Jobseeker’s Allowance (JSA) to help you when you’re looking for work.
You might receive this benefit if you’re a new benefits claimant who has paid sufficient National Insurance. If you claim New Style Job Seeker’s Allowance you may also need to claim Universal Credit for help with housing costs or if you have children.
More information on the New Style Employment and Support Allowance
You can apply for Employment and Support Allowance (ESA) if you have a disability or health condition that affects how much you can work.
You might receive this benefit if you’re a new benefits claimant who has paid sufficient National Insurance. If you claim New Style Employment and Support Allowance you may also need to claim Universal Credit for help with housing costs or if you have children.
The autumn statement confirmed that some people will receive a ‘Cost of Living Payment’, which will be made in 2023 or 2024.
- £900 for households on means-tested benefits
- £300 for pensioners
- £150 for recipients of disability benefits.
Additionally, most allowances – sometimes called the benefit cap - will increase by 10.1% from April 2023. This means most capped households should benefit from this change.
The allowances and premiums for Housing Benefit, Income-Related ESA, Income Support and Income-Based JSA will increase by 10.1% and be rounded to the nearest 5p.
The main rates for Tax Credits will increase by 10.1% and be rounded to the nearest £5, except where there are exceptions.
The allowances and premiums for Universal Credit will increase by 10.1% and be rounded to the nearest 1p, except where there are exceptions. The Universal Credit Work Allowances will also increase by 10.1%.
The following benefits will all increase by 10.1%.
- State Pension and Guarantee Pension Credit
- Disability benefits, including Personal Independence Payment, Disability Living Allowance, Attendance Allowance & Industrial Injuries Disablement Benefit.
- Carer’s Allowance
- Statutory payments, including Statutory Maternity Pay, Adoption Pay & Sick Pay.
- Child Benefit
- Guardian’s Allowance
