What is Universal Credit and who can claim it?▾
Universal Credit is a monthly payment to help with living costs. You may be eligible if you are on a low income or out of work, are 18 or over (some exceptions for 16-17), are under State Pension age, and have less than £16,000 in savings. It replaces six legacy benefits including Housing Benefit, Income Support, and Tax Credits.
How is Universal Credit calculated?▾
Universal Credit starts with a standard allowance based on your age and household status. For 2026/27 that is £338.58 a month if you are single and under 25, £424.90 if you are single and 25 or over, £528.34 for a couple who are both under 25, and £666.97 for a couple where one or both are 25 or over. Elements are then added for children, housing costs, health conditions and caring responsibilities. If you are working, 55p is deducted for every £1 you earn above a work allowance. The work allowance is £427.00 a month if you receive the housing element, or £710.00 a month if you do not.
Has the two-child limit been scrapped?▾
Yes. The two-child limit ended on 6 April 2026 under the Universal Credit (Removal of Two Child Limit) Act 2026. Before that date, no child element was paid for a third or subsequent child born on or after 6 April 2017. Now a child element is paid for every child in your household: £351.88 a month for a first child born before 6 April 2017 and £303.94 a month for every other child. The separate benefit cap still applies, so some out-of-work households will not see the full increase.
Can I claim benefits if I am working?▾
Yes. Universal Credit is designed so that you are always better off in work. Because the taper rate is 55%, you keep 45p of every extra £1 you earn above your work allowance. Child Benefit is available regardless of employment status. The 30 funded childcare hours require every parent in the household to be working.
What is the High Income Child Benefit Charge?▾
If either parent earns between £60,000 and £80,000, you must repay some Child Benefit through a tax charge. At £80,000 or above, you repay 100%. You can still claim and choose not to receive payment, which protects your National Insurance record and your child's NI number. Child Benefit itself is £27.05 a week for your eldest child and £17.90 a week for each other child in 2026/27.
Am I entitled to free childcare?▾
Since September 2025, working parents in England get 30 funded hours a week from the age of 9 months until their child starts school. Each parent must expect to earn at least £203.36 a week — 16 hours at the £12.71 National Living Wage — and neither parent can earn £100,000 a year or more. The entitlement covers 38 weeks a year (term time), though many providers will stretch the same total across all 52 weeks at fewer hours per week. Some 2-year-olds also qualify for 15 hours through a qualifying benefit. Scotland, Wales and Northern Ireland run their own schemes.
What benefits can I claim if I have a disability?▾
You may be eligible for Personal Independence Payment (PIP) regardless of your income or savings. If you claim Universal Credit and are found to have limited capability for work and work-related activity, a health element is added. For claims made from April 2026 that element is £217.26 a month; claimants who already had the element before April 2026, who meet the severe conditions criteria, or who are terminally ill keep the protected rate of £429.80 a month. This estimator uses the new-claim rate. You should also check Attendance Allowance if you are over State Pension age, Access to Work, and council tax disability reduction.
What is Pension Credit and should I apply?▾
Pension Credit tops up your weekly income to £238.00 (single) or £363.25 (couple) if you are over State Pension age, using the 2026/27 standard minimum guarantee. Even if you only qualify for a small amount, it unlocks a free TV licence (over 75), full Council Tax Reduction, Cold Weather Payments, and help with NHS costs. It is worth applying even for small amounts.
How do I apply for benefits?▾
Most benefits can be applied for online at gov.uk. Universal Credit is applied for through the UC online journal. Child Benefit has a postal form (CH2). Pension Credit can be claimed by phone (0800 99 1234). Council Tax Reduction is through your local council. You can also get help from Citizens Advice (0800 144 8848).
Will my savings affect my benefits?▾
For Universal Credit, savings over £6,000 reduce your payment by £4.35 a month for every £250 (or part of £250) above that, and savings of £16,000 or more disqualify you entirely. Pension Credit has no upper savings limit, but savings over £10,000 are treated as producing income. Child Benefit is not affected by savings.
How quickly will I receive my first payment?▾
Universal Credit takes about 5 weeks from application to first payment. You can request an advance payment if you cannot wait. Child Benefit takes up to 12 weeks but is backdated. Pension Credit can be backdated up to 3 months. If you are in financial hardship, ask your Jobcentre about short-term advances or hardship payments.