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Universal Credit - information for tax credits customers

You may have heard about Universal Credit, which will eventually replace tax credits. Find out more.

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What is Universal Credit?

Universal Credit is a new single monthly payment for people in work or out of work.

It will be made up of a standard allowance plus other 'elements' - for example for children, childcare, housing and caring. There will also be an element for those with limited capability for work. So the amount you could get will depend on your own circumstances.

If you qualify, your monthly payment will cover everyone in your family who qualifies for support. 'Family' could mean you as a single person for example, or you might also be claiming for a partner and/or children.

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How will tax credits and other benefits be affected?

Universal Credit will eventually replace all of the following:

  • tax credits - both Child Tax Credit and Working Tax Credit
  • income-based Jobseeker’s Allowance
  • income-related Employment and Support Allowance
  • Income Support
  • Housing Benefit

Universal Credit won't replace Child Benefit.

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If you get tax credits - what you need to do now

If you are already getting tax credits you do not need to do anything yet.

In the meantime it's important to keep your tax credits claim up to date, so make sure you report any changes in your circumstances.

Tax credits: changes you need to report and when

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How you could be affected in the future

Universal Credit is being introduced in parts of Greater Manchester and Cheshire from 29 April 2013. Most people won't be affected at this stage, and you won't need to do anything unless you are told.

There is a small chance you could be affected if you live in this area and start living with a partner who gets Universal Credit. If this happens, your tax credits claim might end, and you'd be able to claim Universal Credit with your partner instead.

Over time the rules about who will be able to claim Universal Credit will change to make it available to more people.

It will take up to four years before all tax credits claims are stopped, so don’t worry if you’re not told to claim Universal Credit soon. You should continue to report changes in your circumstances that could affect your tax credits.

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More information

You can find more information about Universal Credit on the GOV.UK website.
Universal Credit information on GOV.UK (Opens new window)

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