Universal credit

Updated on 7 February 2019


Universal credit is a means-tested benefit for people on low incomes who are both in and out of work. 

It is paid by the Department for Work and Pensions (DWP) and will eventually replace the following benefits

  • Child tax credit
  • Working tax credit
  • Income support
  • Income-related employment and support allowance
  • Income based jobseeker’s allowance
  • Housing benefit

It is a new benefit and is being introduced gradually across the UK. You can find out more about the roll-out of universal credit in our main tax credits and benefits section. 

Universal credit is made up of several different elements including a childcare element. If you meet the qualifying rules, then you may be able to claim up to 85% of your childcare costs. The maximum you can claim is 85% of £760.42 per month for one child (£646.35) or £1,303.57 (£1,105.04) per month for two or more children.

You can find some basic guidance on universal credit and childcare on the DWP’s specialist website.

Use the links below to find out more: