New to Universal Credit - Here Is How to Calculate Your Award

UNIVERSAL CREDIT - The first Universal Credit payments are expected around 22 April for those who applied during the first week of the stay-at-home measures. 

These are the  five steps to follow to understand how Universal Credit is calculated:

Look up your standard amount. This varies by age and if you are making a joint claim. Someone who is single and aged 25 or over, for example, will get £409.89 a month.

Add any other amounts that can be claimed. These are called ‘elements’ and include things such as housing or childcare. How much you get will depend on your circumstances, e.g. a ‘child element’ for your oldest child if they were born before 6 April 2017 is £281.25 a month.

Factor in wages and savings. You will get less Universal Credit if you’re earning wages, have other income, or if you have more than £6,000 in savings.
For each full £1 you earn, your Universal Credit reduces by 63p. But you may be allowed to earn a certain amount without reducing your Universal Credit payment, such as if you are responsible for a child. This is called a ‘Work allowance'.

Take away any other reductions. This could include repaying an advance payment, which is a loan that you can ask for if you will not have enough money to get by until your first payment. Other deductions could include paying back debt, such as utility bills.

Check if the Benefit Cap applies. There is a limit on the amount of benefits you can get. E.g. if you are single and live outside of London it’s £257.69 a week.

We have covered the Benefit Cap in a previous article.

How much is the Benefit Cap?

The current cap is: https://www.abcorg.net/item/3330-tips-when-claiming-universal-credit

• £442.31 per week (£1,916.67 per month or £23,000 per year) for couples and lone parents in Greater London
• £384.62 per week (£ 1,666,67 per month or £20,000 per year) for couples and lone parents outside Greater London
• £296.35 per week (£1,284.17 per month or £15,410 per year) for single adults in Greater London
• £257.69 per week (£1,116.67 per month or £13,400 per year) for single adults outside Greater London

The Benefit Cap calculator: https://www.gov.uk/benefit-cap-calculator

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