Money advice and support

Universal Credit is a benefit which brings together six benefits and replaces them with a single monthly payment. It is a working age benefit for those who are either out of work or in work and on a low income.

Universal Credit has replaced:

• Income-based Job Seeker’s Allowance
• Income-related Employment and Support Allowance
• Income Support
• Working Tax Credit
• Child Tax Credit
• Housing Benefit

Any benefits you receive which are not in the list above will continue to be paid separately – for example Child Benefit, Carer’s Allowance and the Personal Independence Payment.

Universal Crefit must be claimed online. It is paid monthly and it includes housing costs – so you are responsible for making rent payments to your landlord.

Tell us straight away if you are claiming Universal Credit so that we can help you avoid rent arrears.

When are Universal Credit payments made?

Universal Credit is paid once per month. You will be given a payment date and will receive your payment on the same date each month.

If you receive financial help to pay your rent, this will be included in your Universal Credit payment. This is called the Housing Costs Element.

There will no longer be a separate Housing Benefit payment which means that you will pay your rent directly to us as your landlord.

Your Housing Costs Element might not cover your full rent. If this is the case, you will need to top-up the payment from your personal allowance. If you have arrears, these will also need to be paid from your personal allowance.

Your first Universal Credit payment

From your date of claim it may be 5-6 weeks before you receive your first payment. If you will find it difficult to manage during these weeks you can ask the DWP for an advance payment. Advance payments are deducted from future Universal Credit payments.

Paying your rent

The easiest and most convenient way to pay your rent is to set up a Direct Debit or standing order. These methods will help you to avoid getting into rent arrears through missed or late payments.

You can set up a Direct Debit very quickly by calling our customer services team on 0800 007 4567.

You can find out more on our My rent page.

Always make rent your top priority. If you don’t pay your rent in full and on time, you risk losing your home.

If you are having difficulties paying your rent, are concerned about debt or are worried about losing your home, please talk to us – there may be ways we can help.

Personal Independence Payment (PIP) is replacing Disability Living Allowance (DLA). There will be no new claims for DLA for people aged between 16–64.

The Department for Work and Pensions (DWP) is currently reassessing DLA awards as they come up for renewal, when young people turn 16 or where DLA claimants report a change in their condition.

All remaining recipients of DLA who have indefinite or fixed-term awards are also now being invited to make a PIP claim. This is happening on a rolling basis and you will be notified by the DWP about what you need to do to claim PIP. DWP will prioritise recipients who turned 65 after 8 April 2013, when PIP was first introduced.

Further information

PIP helps with some of the extra costs caused by long-term ill-health or a disability, if you’re aged 16 to 64.

You could get between £23.70 and £152.15 a week.

The rate depends on how your condition affects you, not the condition itself.

You’ll need an assessment to work out the level of help you get. Your rate will be regularly reassessed to make sure you’re getting the right support.

If you need further information or support to claim PIP please contact our money advice team by emailing MoneyAdviceTeam@hpg.org.uk

The government have set a limit on the amount of benefit that working age people can claim. This is called the benefit cap.

The aim of the benefit cap is to stop people getting more in benefit payments than the average wage (after tax and national insurance). The benefit cap will only apply to working age people. People of pensionable age will not be affected by the change.

When a household’s total benefit entitlement exceeds the cap, the amount of housing benefit received will be reduced. The cap will also be applied to people claiming Universal Credit.

This means that you could receive less Housing Benefit than you currently get.

Remember, even if the amount of Housing Benefit you receive is reduced, you will still be responsible for paying the difference in your rent.

How much is the benefit cap?

• £257.69 per week for a single person
• £384.62 for a couple
• £384.62 for a couple with children
• £384.62 for single parents

What benefits are included in the cap?

The following benefits are all included within the benefit cap limit:

• Bereavement Allowance
• Child Benefit
• Child Tax Credit
• Employment and Support Allowance (except where it is paid with the support component)
• Housing Benefit
• Incapacity Benefit
• Income Support
• Jobseeker’s Allowance
• Maternity Allowance
• Severe Disablement Allowance
• Widowed Parent’s Allowance
• Widowed Mother’s Allowance
• Widow’s Pension age-related
• Widow’s Pension

What does this mean for me?

This means that you could receive less Housing Benefit than you currently get.

Remember, even if the amount of Housing Benefit you receive is reduced, you will still be responsible for paying the difference in your rent.

Who is not affected by the cap?

The benefit cap will not apply to you if you, your partner, or any children you are responsible for, and who live with you, receive any of the following benefits:

• Working Tax Credit
• Carer’s Allowance
• Guardian’s Allowance
• Disability Living Allowance
• Personal Independence Payment
• Attendance Allowance
• Constant Attendance Allowance
• Employment and Support Allowance, if paid with the support component
• War Widow’s or Widower’s Pension
• Industrial Injuries Benefit

Online calculator

There is an online calculator to help you see whether you are affected by the benefit cap and if so, by how much.

For a personalised calculation go to www.gov.uk/benefit-cap-calculator

Discretionary Housing Payments (DHP) can provide extra money when your council decides that you need extra help to meet your housing costs.

Your council will look at your circumstances to see whether you are eligible for a DHP. They will decide whether to give you a DHP, how much you will be paid and for how long you will receive the payment.

• DHP is an extra payment to help people who claim Housing Benefit and are struggling to pay their rent.
• DHP can help to pay rent in advance of moving into a property, or if you need help with a deposit.

• DHP can help with removal costs, for example because you have to move to a more suitable home.

Sanctioning is when your benefits are stopped for failing to do something you have been asked, by the Job Centre, such as attending an interview or completing an application form.

Make sure you keep copies of all documents, keep track of dates and ask us for advice when you need it.

Who can be sanctioned?

You can be sanctioned if you’re claiming:

• Jobseeker’s Allowance
• Universal Credit
• Employment and Support Allowance (and you’re in the work-related activity group)
• Income Support

How can I avoid sanctions?

The best way to avoid sanctions is to do all the things that are set out in your claimant commitment or agreement. Here’s a checklist to help you:

• Make sure you understand all your responsibilities
• Ask your Work Coach or Jobcentre Adviser to explain anything that’s unclear
• Let the Jobcentre know as soon as possible if there’s anything in your agreement that you can’t do and explain your reasons
• Keep track of all the dates when you have to go to the Jobcentre and any other meetings you have to attend
• Keep a record of all your activities that relate to your benefit requirements. For example, make a note of the time you spend looking for work and any jobs you apply for
• Keep a copy of anything the Jobcentre gives or sends you

How can I challenge a sanction?

You can ask the Jobcentre Plus to look again at their decision to sanction you if you think:

• They were wrong to sanction you
• They have deducted the wrong amount from your benefit
• They have given you the wrong level of sanction
• They have reduced your benefit for the wrong length of time
• If Jobcentre Plus refuses to change their decision, you can appeal against it.

How can I appeal against a benefit sanction?

You can contact our money advice team by emailing MoneyAdviceTeam@hpg.org.uk

Inform Housing Benefits/Universal Credit

When your benefits are sanctioned, the Jobcentre will contact the council, who usually stop your Housing Benefit and Council Tax reduction until they have confirmation of your new income. Be sure to inform them of your sanction so your Housing Benefit and Council Tax support does not stop.

Apply for a hardship payment

A hardship payment is a reduced amount of benefit that you can apply for from the Jobcentre, if your benefit has been reduced because of a sanction. It normally pays 60% of your benefit payment.

To be eligible for a hardship payment, you must now be following the rules for getting your benefit.

Hardship payments of Universal Credit have to be paid back once the sanction comes to an end.

If you want to apply for a hardship payment, ask at your nearest Jobcentre.