Universal Credit impact on tax credits explored – how the £500 payment could be affected | Personal Finance | Finance

Universal Credit will eventually replace tax credits for most people but for those who are already getting tax credits, they will not need to do anything unless their circumstances change or they’re told by DWP to claim Universal Credit. However, there are a number of circumstances which could affect working tax credit eligibility and bonus entitlement.

To be eligible for Universal Credit, a claimant must:

  • Be on a low income or out of work entirely
  • Be aged between 18 and state pension age
  • Have less than £16,000 in savings
  • Be living in the UK

Once a claim is processed, initial payments can take up to five weeks to arrive.

Should a claimant need help with their living costs while they wait for their first payment, they can apply for an advance.

Beyond the initial payment, the money will come through once a month on the same date.

Claimants will receive a monthly statement which tells them how much Universal Credit they’ll get.

Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to personal.finance@reachplc.com. 

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