Universal Credit

If you’re on a low income, Universal Credit can give you extra money to help with the costs of living, including housing and bringing up children. Our Universal Credit guides and tools will help you find out: 

Universal Credit in Scotland

Universal Credit is a UK-wide benefit that helps with living costs if you’re on a low income, out of work, unable to work due to illness or disability, or caring for someone. In Scotland, there are additional payment options designed to give people more choice and flexibility.

What Universal Credit Is

Universal Credit replaces several older benefits, including:

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

It is usually paid monthly and combines different types of support into one payment.

Who Can Qualify

You may be able to claim Universal Credit if you:

• Are on a low income or out of work
• Are aged 18 or over (some exceptions apply)
• Live in the UK
• Have savings below the set limit

How much you receive depends on:

• Your income and savings
• Your household and housing costs
• Whether you work
• If you’re sick, disabled, or a carer

How to Apply

• Universal Credit is claimed online through the UK Government system
• You’ll need information about your income, savings, housing, and the people you live with
• You must verify your identity and may be asked to attend an appointment
• Your first payment is usually made around five weeks after you apply
• Advance payments may be available if you need money sooner

gov.uk Universal Credit application

How Universal Credit Works in Scotland (Scottish Choices)

If you live in Scotland, you can choose:

• To be paid twice a month instead of once
• To have your housing costs paid directly to your landlord

These options are called Scottish Choices and are optional.

https://www.gov.scot/policies/social-security/universal-credit

Migration Notice – What to Do

If you receive a migration notice, it means you are being asked to move from existing benefits to Universal Credit.

If this happens:

• Apply for Universal Credit by the deadline in your notice
• Do not stop your current benefits until you have made your claim
• Applying on time may protect your income through transitional protection

Missing the deadline could mean losing money.

Reporting Changes

You must report changes in your circumstances, such as:

• Changes to income or work
• Moving home
• Changes to who lives with you
• Changes to childcare or caring responsibilities

This is done through your Universal Credit online account.

What to do if the housing element of your Universal Credit payment is reduced

If the housing element of your Universal Credit payment has been cut – perhaps because of a spare bedroom – you might be worried about falling behind with your rent.

Find out more in our guides:

• What is the bedroom tax?
• Moving to Universal Credit from other benefits

Contact your landlord

If you’re worried about finding the money to pay your rent – talk to your landlord to see whether there are any options available to you.

Do you rent a social housing property? Your council or housing association might talk to you about transferring to a smaller home if any are available. They can advise you on whether any extra financial help might be available to you.

Claim a Discretionary Housing Payment from your council

You might be able to apply to your council to help top up the housing element of your Universal Credit payment in the short term. This is called a Discretionary Housing Payment and is available to people who are facing a shortfall between their benefits and housing costs.

https://www.gov.scot/publications/scottish-discretionary-housing-payments-guidance-manual/pages/5

Consider getting a lodger

Renting out your spare room might be a possibility.

If you do decide to go down this route, there are a few things you need to know:

• Having a lodger would mean you’re no longer considered as having a spare room when it comes to assessing your Universal Credit. 
• If you’re getting Universal Credit, any money you get from sub-tenants and lodgers under the rent-a-room scheme will not be counted as income up to the tax-free allowance of £7,500. 
• You’ll have to check your tenancy agreement allows you to sublet a room.
• Your contents insurance might not be valid if you take in a lodger. Make sure you check with your insurer that you’re still covered.

Find out more in our guide Rent a Room scheme – how it works and tax rules

Act quickly if you have rent arrears

If you’re already behind with your rent, it’s important to speak to your landlord straight away.

You might be able to agree with them where you pay them the money you owe, bit by bit.

Please contact our Admin Team on 01417735850 for any assistance regarding Universal Credit