WOULD YOU BE BETTER OFF ON UNIVERSAL CREDIT?

✱ Step 1: Check if you’re in a category likely to be better off switching. If you work and pay rent, especially in a city, then you’re in the sweet spot where this may work. Same too if you’re at the higher end of earnings that still allow you to get benefits. On the other hand, if you’re a single parent and/or have a disability and you work but don’t pay rent, or you’re self-employed earning under £1,200/mth, then you’re likely to be worse off on UC. Same too if you have decent savings, especially if they’re over the £16,000 cut-off.

✱ Step 2: If you’re in the right category, use a benefits calculator. It will tell you if you’re likely to be better off and by how much. But bear in mind these tools don’t include everything – so only treat this step as a jumping off point to see if you should do more.

✱ Step 3: If the calculator shows you’ll make a decent gain, don’t do anything without one-on-one help. There are a lot of changes in the move to UC…

✱ You’re usually paid monthly and must budget (tricky for some with impulse control or addiction problems).

✱ It’s one payment to the household (a possible issue for those in financially abusive relationships).

✱ The first payment takes five weeks (though you can get an advance).

✱ The work rules may be different; some people have to do 35 hours of ‘workrelated’ activities a week.

✱ Most importantly, if you have certain debts, including council tax, rent and energy bills, up to 25% can be taken off the standard UC payment which can scupper things (and that’s not included by the calculators).

So you can see why I say go through it with a professional. The Government runs a free service called moneyhelper.org.uk. You can also visit citizensadvice.org.uk or advicelocal.uk for help.