Universal Credit

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•Replaces all existing means tested benefits for working age claimants

•(Except Council Tax Benefit)

Abolished

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•Income Support•Income based Jobseekers Allowance•Income related ESA•Housing Benefit•Council Tax Benefit•Child Tax Credit•Working Tax Credit•Budgeting loans

£67.50 £67.50

£26.75

£32.35

EDP £14.05SDP £55.30 CP £31.00

Total Income £67.50£94.25£99.85£113.90£169.20£200.20

Single person aged 25+

WCA

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£67.50 £67.50

£26.75

£77.00

Total Income £67.50£94.25£144.50

Single person aged 25+

WCA

Universal Credit – the sick note route

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Carers

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•Single Carer aged 25+ £98.50

•Couple aged 25+ (Jobseeker and Carer)£136.95

•Couple aged 25+ (Carer and Carer) £167.95

•Couple aged 25+ (ESA wrag and Carer)£163.70

•Couple aged 25+ (ESA support and Carer)£169.30

Children

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£62.33

Housing costs

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•Housing Associations•LHA•Mortgage interest

Moving into work

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65% taper

Moving into work – earnings disregards

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lone parent: £5,000 plus £2,700 per household for a

child;

disabled person: £7,000 per household if the recipient

or either partner in a couple is disabled;

single person without children: no disregard

couple: £3,000 plus £2,700 per household for a child

(regardless of the number of children);

Moving into work

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The amount to be disregarded will be reduced depending

on how much is included in universal credit for rent or

mortgage interest support.

It is proposed to reduce disregards by one-and-a-half

times a claimant’s eligible rent or mortgage interest

support.

Moving into work – disregard floor

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couple: £520 per household plus £520 for the first child, £260 for

each of the second and third children;

lone parent: £1,560 per household plus £520 for the first child, £260

for each of the second and third children;

disabled people: £2,080

The reduction for housing costs is limited so that people get a

minimum disregard – called a ‘disregard floor’.

Moving into work - example

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A lone parent with three children has rent of £80 a 

week.  

Assumed maximum disregard is £7,700 and the 

disregard floor is £2,600.

Reducing the disregard by 1.5 times the help with 

housing costs (£6,240) would bring the 

disregard below the floor. So the disregard that 

applies is the floor of £2,600 = £50 a week.       

As a result of the 65 per cent taper, she also keeps 35p for eac

h £1 of net earnings over £50.

Other issues

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Children with disabilities

Help with childcare costs

Income from self employment

Universal Credit – more information

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http://www.dwp.gov.uk/policy/welfare-reform/legislation-and-key-documents/welfare-reform-bill-2011/universal-credit-briefing/

http://www.cpag.org.uk/universalcredit/uc_factsheet.htm