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What Is Universal Credit?

Universal Credit is a single payment for people who are looking for work or on a low income.

Universal Credit has been designed so that it is payable whether you are working or not. If you are on a low income and are moving in and out of work Universal Credit will remain in payment and be adjusted to suit your new financial circumstances. As your income increases your Universal Credit amount decreases until you no longer need it.

Universal Credit is calculated as a basic allowance for a single person or a couple plus additional amounts for:

  • Each child or young person you are responsible for (with extra amounts if they are disabled) 
  • Child care costs 
  • If you have a 'limited capability for work' (This means that you are unable to work due to an illness or a disability) 
  • If you have regular and substantial caring responsibilities for a severely disabled person 
  • Housing costs (mortgage interest payments and rent payments if you are unemployed)

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