CORONAVIRUS: Many people have been told to claim Universal Credit because their income has dropped due to the Coronavirus – but this may not be their only option – especially if they are already getting Tax Credits and/or Housing Benefit. See our Coronavirus pages for more information.
What happens to my current benefits?
When you make a claim for Universal Credit some of your existing benefits will stop.
Below we consider the most common benefits. If you are getting a benefit that is not listed below, then that benefit should not stop – if you would like to know how it affects your Universal Credit award, then please contact a Benefits Adviser.
If you have been getting Employment and Support Allowance prior to claiming Universal Credit, then special rules may apply.
See If you have a health problem that affects your ability to work for more information.
Housing Benefit is being replaced by UC (unless you live in 'temporary' or 'specified accommodation'). Therefore when you make a claim for UC, your HB award will be brought to an end. If your HB is ending because you are making a new claim for UC, then you should be entitled to a 2 week run-on called a Transition to UC Housing Payment.
Working Tax Credit and Child Tax Credits
Working Tax Credit and Child Tax Credit are being replaced by UC. Therefore when you make a claim for UC, any existing Tax Credit claim will be terminated from the day before you claim UC.
Income-Related ESA, Income-Based JSA & Income Support
Income-Related ESA, Income-based JSA and Income Support are being replaced by UC. Therefore when you make a claim for UC, any existing IR-ESA/IB-JSA/IS claim will normally end from the day before you claim UC - although in some cases there is a 2 week run-on.
Industrial Injuries Disablement Benefit
IIDB is not being replaced by UC and will continue to be paid. It is classed as income for UC and will reduce your UC award..
Personal Independence Payment
PIP is not being replaced by UC and will continue to be paid. It is not considered as income for UC.
Disability Living Allowance
DLA is not being replaced by UC and will continue to be paid. If you are responsible for a child on DLA/PIP, then your UC award should include a Disabled Child Element.
Child Benefit is not being replaced by UC and will continue to be paid. It is not classed as income for UC.
New-style Jobseekers Allowance
Contribution Based Jobseekers Allowance is not being replaced by UC and will continue to be paid. It is classed as income for UC and will reduce your UC award.
New-style Employment and Support Allowance
Contributory Employment and Support Allowance is not being replaced by UC and will continue to be paid. It is classed as income for UC and will reduce your UC award.
CTS is not being replaced by UC. Let the council know about your new circumstances - they will need to
Free School Meals / Free Prescriptions
If you are entitled to free school meals for your child/ren when you move onto UC, you will continue to be entitled until 31st March 2022. To be entitled to free prescriptions, you must either have no earnings, or your earnings must be less than £435 per month or £935 per month if you have children / a Limited Capability for Work.
Carers Allowance is not being replaced by UC and will continue to be paid. It is classed as income for UC and will reduce your UC award. If you (or your partner) are getting Carers Allowance, then your UC award would normally include a Carer Element.
The Bereavement Benefit system is not being replaced by UC. Bereavement Support Payment is not considered as income for UC, but Widowed Parents Allowance and Bereavement Allowance is.
Statutory Sick / Maternity / Paternity / Adoption Pay
UC is not replacing the Statutory Payment system. These payments are treated as earnings and can be 'topped up' by UC.
Discretionary Housing Payments
DHPs are not being replaced by UC. Depending on why you are making a claim for UC, the Local Authority may review your award. You can continue to get a DHP if your UC award includes a Housing Costs Element and the Local Authority still assess you as being in financial hardship.