Universal credit

Universal Credit is a single monthly payment that has replaced six previous working-age benefits: income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Housing Benefit.

It is paid monthly in arrears, directly into a bank account. If you make a joint claim as a couple, a single payment is made into one account for the household. Your payment will include an amount towards your rent if you pay rent to a landlord (called housing costs).

In Scotland, you can choose to have your Universal Credit paid twice a month rather than monthly, and you can ask for your housing costs to be paid directly to your landlord rather than to you.

Claimant commitment

Before you can receive Universal Credit, you will need to agree to a Claimant Commitment. This sets out what you are expected to do in return for receiving Universal Credit - for example, looking for work or preparing for work - taking into account your individual circumstances. Find out more about the claimant commitment on the GOV.UK website.

Housing costs and rent

If you pay rent, your Universal Credit payment may include a housing costs element to help with your rent. You are responsible for paying your rent directly to your landlord from this payment. If your rent arrears reach the equivalent of two months' rent, you or your landlord can ask the Department for Work and Pensions to consider paying your housing costs directly to your landlord instead. Find out more about universal credit and rented housing on GOV.UK. 

How to claim

You can claim Universal Credit online at any time. If you need help claiming online, the Orkney Citizens Advice Bureau can assist you.

Managing your money on Universal Credit

Because Universal Credit is paid monthly, it is important to plan ahead and make sure your bills are paid on time. Before your first payment arrives, it is worth making sure you have a bank, building society or credit union account set up for your payments, and that you have worked out a monthly budget.

The MoneyHelper website has free budgeting tools and advice on managing your money.

The Orkney Citizens Advice Bureau can also help with budgeting and debt advice.