DWP Universal Credit eligibility rules in full as one million more people now claim
The number of people claiming Universal Credit has skyrocketed to a record-breaking eight million, with claimants increasing by over a million in just one year - from 6.9 million people in July last year.
The latest figure of eight million for July 2025 is the highest it's been since the benefit was introduced in 2013. Universal Credit, administered by the Department for Work and Pensions, is a payment designed to assist with living costs.
It's available for those in work earning low incomes, as well as those who are unemployed or unable to work. In other news, here's a state pension warning for millions of Brits who are between two specific ages.
The sharp increase over the past year has been predominantly driven by individuals not required to work, with 3.7 million in this category in July - a rise of 39% or 1 million since the same time in 2024. This group can include those in full-time education, over the State Pension age, someone with a child aged under one, and those considered to have no prospect of work.
This news comes as benefit claimants were reminded that their payments will be received on a different date due to the August Bank Holiday, reports Chronicle Live. The Labour Government has previously stated that it "inherited a broken welfare system and spiralling, unsustainable benefits bill" from the Conservatives, and is working on reforms including tightening rules on who can claim Universal Credit.
The number of working people on Universal Credit rose to 2.2 million in July, up slightly from 2.1 million 12 months previously. Here's a round-up of the rules around who can qualify for the benefit and the criteria you need to meet. More details can be found on the Government website.
Who is eligible for Universal Credit?
You may be able to get Universal Credit if you're on a low income or need help with your living costs. You could be:
out of work
working (including self-employed or part time)
unable to work (i.e. due to a health condition)
To claim, you must:
live in UK resident
be aged 18 or over (however, exceptions can be made to those who are 16 or 17)
be £16,000 or less in money, savings and investments
If you live with your partner
Both of you will need to claim Universal Credit. A joint claim for your household must be made, even if your partner is not eligible. The amount you can receive will depend on your partner's income and savings, as well as your own.
If one of you has reached State Pension age
Even if only one of you has reached State Pension age, you and your partner can still claim Universal Credit as a couple. Your Universal Credit claim will stop when both of you reach State Pension age.
If you're receiving Pension Credit, it will stop if you or your partner make a claim for Universal Credit. You'll usually be better off staying on Pension Credit. You can check using a benefits calculator.
If you're studying or in training
You can make a claim for Universal Credit if you're in full-time education and any of the following apply:
you live with your parents and they're eligible for Universal Credit
you're responsible for a child (whether as a single person or as a couple)
you've reached State Pension age and live with a partner who's below State Pension age
you've received a letter from Migration Notice telling you to move to Universal Credit
You can also apply for Universal Credit if you're 21 or under, studying any qualification up to A level or equivalent and lack parental support. You might be eligible to claim if you are studying part-time or undertaking a course for which no student loan or finance is available. Check the guidance about claiming Universal Credit as a student.
Students with disabilities or health conditions
You can apply for Universal Credit if you're in full-time education, and have been assessed as having limited capability for work by a Work Capability Assessment before starting your course. You must also be entitled to any of the following:
Personal Independence Payment (PIP)
Disability Living Allowance (DLA)
Child Disability Payment (CDP) in Scotland
Attendance Allowance
Armed Forces Independence Payment
Adult Disability Payment (ADP) in Scotland
Pension Age Disability Payment (PADP) in Scotland
Claiming if you're 16 or 17
You can submit a claim for Universal Credit if any of the following apply:
you have a health condition or disability and have medical evidence for it, such as a fit note
you're caring for someone who gets a health or disability-related benefit
a medical professional has said you're nearing the end of life
you're responsible for a child
you live with your partner, have responsibility for a child and your partner is eligible for Universal Credit
you're pregnant and expecting your baby in the next 11 weeks
you've had a baby in the last 15 weeks
you do not have parental support (i.e. you do not live with your parents and are not under local authority care)
If you have a disability or health condition
If you have a health condition that affects your ability to work you might receive extra money for Universal Credit.
How your wages affect your payments
If you or your partner are working, the amount of Universal Credit you receive will depend on your earnings. There's no limit to how many hours you can work and still receive Universal Credit.
If your wages increase, your Universal Credit payment will decrease. If you stop working or your wages decrease, your payment will increase. For every £1 you earn from working, your Universal Credit payment decreases by 55p. Your income will be your wages plus your new Universal Credit payment.
Utilise a benefits calculator to understand how an increase in your wages might affect your Universal Credit. In most cases, your employer will report your earnings for you. Typically, only self-employed individuals need to report their monthly earnings.
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