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Universal Credit is one of the main forms of financial support available to people in the UK who are on a low income, out of work or unable to work. For someone making a claim for the first time, however, understanding the application process, assessment periods and payment system can initially seem complicated.
Universal Credit is administered by the Department for Work and Pensions (DWP) and is generally paid monthly. The amount a claimant receives depends on factors such as earnings, savings, housing costs, children, health circumstances and whether they live with a partner.
For new claimants, understanding what happens from the day a claim is submitted can make it much easier to prepare for the first assessment period and manage the wait for the first payment.
What Is Universal Credit?
Universal Credit is a means-tested benefit designed to help with living costs. It may be available to people who are unemployed, working on a low income, self-employed or unable to work because of certain health circumstances.
It has replaced several older means-tested benefits for most working-age claimants, including Housing Benefit and income-related Employment and Support Allowance.
Universal Credit can include different amounts, often called elements, depending on the claimant’s circumstances. For example, a payment may include support towards housing costs, children or certain health-related needs.
Universal Credit is normally paid once a month, although different arrangements can apply in Scotland.
Who Can Make a New Universal Credit Claim?
Eligibility depends on personal and financial circumstances. In general, a person may qualify if they are on a low income, unemployed or need help with their living costs.
Normally, a claimant must live in the UK, be aged 18 or over, be under State Pension age and have no more than £16,000 in money, savings and investments. There are limited circumstances in which some people aged 16 or 17 may qualify.
What Happens If You Live With a Partner?
Universal Credit considers couples as a household. If you live with a partner, both of you normally need to make a joint claim, even where one partner would not qualify individually.
The household’s entitlement can therefore be affected by both partners’ income and savings. Each partner creates an account, and the accounts are linked as part of the claim process.
How Do You Make a New Universal Credit Claim?
Most Universal Credit claims are managed online. A new claimant creates a Universal Credit account, provides the required information and submits the application.
Information requested may include details about identity, income, savings, housing, employment, children and other circumstances relevant to the claim.
Creating an account alone does not complete the process. GOV.UK states that the claim must be submitted within 28 days of creating the account.
What Happens After You Submit the Claim?
After submitting an application, a claimant will usually need to complete additional steps to verify the claim.
This can include confirming identity, providing supporting information and attending an interview with Jobcentre Plus. GOV.UK says claimants will be told how to arrange the interview after submitting the claim and that it should take place within 10 working days.
Someone with a health condition or disability may also be asked to provide additional evidence and could need a Work Capability Assessment, depending on their circumstances.
What Is a Universal Credit Assessment Period?
One of the most important concepts for new claimants to understand is the assessment period.
Universal Credit is calculated according to a claimant’s circumstances during a monthly assessment period. The first assessment period begins on the date the Universal Credit claim is made and normally lasts for one month.
The payment is generally made seven days after the assessment period finishes. This is why new claimants usually wait around five weeks from making their claim until receiving their first regular Universal Credit payment.
| Stage | What Usually Happens |
|---|---|
| Claim submitted | First assessment period begins |
| First month | Income and circumstances are assessed |
| End of assessment period | Universal Credit entitlement is calculated |
| Around 7 days later | First regular payment is normally made |
| Following months | Monthly assessment and payment cycle continues |
Understanding this cycle is particularly important for people moving from wages or another source of income to Universal Credit.
How Is the Amount of Universal Credit Calculated?
There is no single Universal Credit payment that applies to every claimant. The calculation starts with amounts that apply to the household’s circumstances and can then be adjusted according to income and other factors.
A household may receive additional support depending on circumstances such as children, eligible housing costs or qualifying health conditions.
For people trying to understand the wider benefits system, eligibility rules and changes affecting financial support, resources such as ukbenefits.co.uk can provide additional information alongside official government guidance.
What Happens If You Work While Receiving Universal Credit?
Universal Credit is not restricted to unemployed people. Many people receive it while working.
For most employed claimants, earnings information is reported through the PAYE system and used when calculating Universal Credit for the relevant assessment period.
Some claimants with responsibility for a child or a qualifying health condition may receive a work allowance, which allows them to earn a certain amount before their Universal Credit begins to reduce.
This means Universal Credit payments can change from month to month if earnings change.
What Is the Claimant Commitment?
New Universal Credit claimants will generally need to accept a claimant commitment.
This is an agreement setting out what the claimant has agreed to do in return for receiving Universal Credit. Depending on individual circumstances, responsibilities could include looking for work, preparing for employment or taking steps to increase earnings.
The requirements are supposed to reflect the person’s circumstances. Factors such as caring responsibilities, children and health conditions can affect what someone is expected to do.
People living together as a couple each have their own claimant commitment.
Why Is the Claimant Commitment Important?
Claimants need to understand and follow the requirements they have agreed to.
Failing to meet an agreed requirement without an accepted reason could lead to a sanction, which can reduce a Universal Credit payment.
Claimants should therefore communicate with their work coach or case manager if circumstances change or something prevents them from meeting an agreed responsibility.
Can New Claimants Get Help Before Their First Payment?
Waiting around five weeks for the first regular payment can create financial pressure, particularly for someone who has recently lost their income.
A new claimant who needs help with essential costs while waiting may be able to apply for a Universal Credit advance.
An advance is not an additional benefit payment that the claimant gets to keep permanently. It normally has to be repaid through deductions from future Universal Credit payments.
Before requesting an advance, claimants should therefore consider how repayments could affect their monthly budget once regular Universal Credit payments begin.
How Do You Manage Universal Credit After Claiming?
The online Universal Credit account becomes an important part of managing the claim.
Claimants can use their account to view upcoming payments, check their to-do list, communicate through their journal, view their claimant commitment and report changes in circumstances.
Regularly checking the account is important because the DWP may add tasks or request additional information.
Which Changes Should Be Reported?
Changes that affect entitlement should be reported promptly. Depending on the situation, this could include starting or leaving a job, changes in household circumstances, moving home or other relevant changes.
Failing to keep information up to date could result in incorrect payments. If someone receives more Universal Credit than they were entitled to, the overpayment may later need to be recovered.
How Do Universal Credit Payments Work Each Month?
After the first payment, Universal Credit is normally paid on the same date each month.
If the normal payment date falls on a weekend or bank holiday, payment is generally made on the working day before. Claimants can view their monthly statement through their Universal Credit account to see how their payment has been calculated.
Housing support can also form part of Universal Credit. In many cases, the housing amount is included in the claimant’s payment and the claimant then pays their landlord.
Alternative payment arrangements may sometimes be available where someone is having difficulty managing the standard monthly payment.
What Should New Universal Credit Claimants Remember?
The first few weeks of a Universal Credit claim are particularly important because they establish the claimant’s assessment and payment cycle.
New claimants should make sure the information in their application is accurate, complete requested tasks promptly and regularly check their online account and journal.
It is also important to understand that Universal Credit is responsive to circumstances. Earnings, household changes, housing arrangements and other relevant factors can alter the amount received from one assessment period to another.
Final Thoughts
Universal Credit works through a monthly assessment system that looks at a household’s circumstances and calculates the support available for that period. For a new claimant, the process normally begins with an online application, followed by verification, an assessment period and the first payment around five weeks after the claim is made.
Once the claim is active, the claimant needs to keep their account updated, follow any applicable claimant commitment and report relevant changes in circumstances.
Understanding the assessment period, payment timetable and responsibilities from the beginning can make Universal Credit easier to manage and reduce the risk of unexpected changes or problems with payments.
This article provides general information and should not be treated as personalised benefits or financial advice. Claimants should check current GOV.UK guidance or contact Universal Credit for advice relating to their individual circumstances.
