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Universal credit

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Universal credit

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
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This guidance note covers the scope of universal credit, who can claim, advance payments, sanctions and claim procedures.

Universal credit is a non-taxable state benefit that is administered by the Department of Work and Pensions (DWP) and is available throughout the UK. It is available to individuals on low incomes whether they are in work, unemployed or self-employed. It is designed as a replacement for several ‘legacy benefits’, primarily tax credits. Individuals can no longer make a new claim for tax credits. Individuals seeking to make new claims and reporting changes in circumstances, are now directed to making a new claim for universal credit.

It is intended that by March 2025 at the latest, all claimants currently receiving the legacy benefits, with the exception of income-related employment and support allowance (ESA), will be automatically transferred to universal credit. In the interim the natural migration to universal credit will continue through new claims and changes in the circumstances of claimants. The government decided to delay the move of ESA claimants until 2028 and there will therefore be a lull in migration

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  • 09 Sep 2024 15:32

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