DWP’s Universal Credit is a key UK benefit designed to support individuals and families with living costs, whether they’re working, out of work, or facing health challenges. In January 2025, 7.5 million people were receiving Universal Credit—up from 6.4 million a year prior. This increase reflects both growing awareness and the government’s continued shift from legacy benefits to a single monthly payment. If you’re considering applying for Universal Credit, here’s everything you need to know about eligibility and how it works.
What Is Universal Credit?
Universal Credit is a monthly payment from the UK government’s Department for Work and Pensions (DWP). It helps cover basic living expenses such as housing, food, and childcare. It’s gradually replacing six legacy benefits:
- Working Tax Credit
- Child Tax Credit
- Income Support
- Jobseeker’s Allowance (income-based)
- Employment and Support Allowance (income-related)
- Housing Benefit
This consolidation makes the benefits system simpler and aims to ensure that claimants are always better off working than not.
Who Can Claim Universal Credit?
To qualify for Universal Credit, you must meet the following basic requirements:
| Criteria | Details |
|---|---|
| Age | 18 or older (exceptions for some 16–17 year olds) |
| Residency | Must live in the UK |
| Financial Limits | Savings and investments must be £16,000 or less |
| Employment Status | Can be unemployed, employed, or self-employed |
| Health | Can apply if you have a disability or long-term health condition |
| State Pension Age | Must be under State Pension age (unless applying as part of a couple) |
Even if you’re working, you may still be eligible depending on your income, household size, and expenses like rent or childcare.
Special Rules for Couples and Students
If you live with a partner, you must make a joint Universal Credit claim. Your combined income and savings will be assessed, even if one of you is not eligible on your own.
Students can claim Universal Credit if they meet certain conditions, such as:
- Living with a partner who qualifies
- Having a child or acting as a caregiver
- Being under 21 and in non-advanced education without parental support
- Having a disability and being deemed to have limited work capability
Younger people (aged 16–17) may also claim Universal Credit if they meet specific conditions, including being a parent, pregnant, disabled, or lacking parental support.
What If You Have a Health Condition?
If a physical or mental health condition limits your ability to work, you may receive extra support under Universal Credit. This could include a higher payment or exemptions from job-seeking requirements, depending on the outcome of a Work Capability Assessment.
Support for Armed Forces and Veterans
Members of the armed forces posted abroad, or veterans returning to civilian life, may also claim Universal Credit. Special rules apply for providing a UK-based address and proving residency or entitlement.
Universal Credit and the Migration from Legacy Benefits
The government is steadily migrating people from older benefits onto Universal Credit. If you receive a “Migration Notice,” you’ll need to apply for Universal Credit to continue receiving support. Failure to do so may result in payment delays or loss of benefits.
Key Takeaways
- Universal Credit is flexible—available to workers, jobseekers, students, and those with health issues.
- Savings matter—you won’t qualify if your household has more than £16,000 in savings.
- Joint claims are required for couples, and payments depend on combined finances.
- Students and younger people can qualify, but only under certain conditions.
- Extra support is available for people with health problems and members of the armed forces.
Understanding the eligibility rules and preparing the right documentation can streamline the application process and help you receive timely support.
FAQs
Who is eligible for Universal Credit?
Anyone over 18 (with some exceptions for 16–17-year-olds), living in the UK, with less than £16,000 in savings, and who is under State Pension age, may qualify—whether employed, unemployed, or unable to work due to a health condition.
Can students claim Universal Credit?
Yes, but only under specific circumstances such as living with a partner who is eligible, being a parent, lacking parental support under age 21, or having a disability.
Do couples apply together?
Yes. Both partners must submit a joint application. Eligibility and payments are based on combined income and savings.