DWP Universal Credit: Full list of eligibility rules as claimants hit record high
The number of individuals claiming Universal Credit has hit a record-breaking eight million, with the claimant count soaring by over a million within a year - from 6.9 million people in July last year.
The latest figure of eight million for July 2025 is the highest since the benefit was introduced in 2013, according to official figures released on Tuesday.
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 employment earning low incomes, as well as those who are unemployed or unable to work.
The sharp increase over the past year has been almost entirely driven by individuals not required to work, with 3.7 million in this category in July - an increase of 39% or 1 million since the same period in 2024, reports ChronicleLive.
This group can include those in full-time education, over the State Pension age, someone with a child aged under one, and those deemed 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,
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 employed people on Universal Credit rose to 2.2 million in July, up slightly from 2.1 million 12 months prior.
Here, we've summarised 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.
Eligibility for Universal Credit
You may be eligible for Universal Credit if you're on a low income or require assistance with your living costs. You could be:
out of work
working (including self-employed or part time)
unable to work, for example because of a health condition
To claim, you must:
live in the UK
be aged 18 or over (there are some exceptions if you're 16 to 17)
be under State Pension age
have £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 is required, 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
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 cease when you both 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 claim Universal Credit if you're in full-time education and any of the following apply:
you live with your partner and they're eligible for Universal Credit
you're responsible for a child, either as a single person or as a couple
you've reached State Pension age and live with a partner who is below State Pension age
you've received a Migration Notice letter telling you to move to Universal Credit
You can also claim Universal Credit if you're 21 or under, studying any qualification up to A level or equivalent and do not have parental support. You may be able to claim if you are studying part-time or doing 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 claim 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 make 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, for example 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 get extra money for Universal Credit.
How your wages affect your payments
If you or your partner are working, how much Universal Credit you get will depend on how much you earn. There's no limit to how many hours you can work and still get Universal Credit.
If your wages go up, your Universal Credit payment will reduce. If you stop working or your wages go down, your payment will increase.
For every £1 you earn from working, your Universal Credit payment goes down by 55p. Your income will be your wages plus your new Universal Credit payment.
Use a benefits calculator to see how your Universal Credit changes if your wages increase. Most employers will report your wages for you.
You will typically only need to report monthly earnings if you're self-employed.
Join the North Wales Live Whatsapp community now
Find out what's happening near you
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
5 hours ago
- Daily Mirror
DWP bonus payment this year for millions who claim PIP and State Pension
The DWP Christmas Bonus is a one-off, tax-free payment of £10 made to people in receipt of certain benefits - but not Universal Credit. Here's everything you need to know Millions of people on benefits will receive a modest cash uplift before the new year rings in. Nearly 24 million individuals across the UK are currently claiming at least one benefit from the Department for Work and Pensions (DWP). This figure includes 13 million pensioners receiving State Pension payments, 5.7 million on Universal Credit, and 3.7 million Personal Independence Payment (PIP) claimants. However, many people, including those newly eligible for the State Pension, may not be aware of an annual bonus paid to claimants on certain benefits before Christmas. It comes on the back of news that the DWP is paying up to £749.80 every month to people with stomach issues. The DWP 'Christmas Bonus' is a one-off, tax-free payment of £10 made to people in receipt of certain benefits - but not Universal Credit. Those on the State Pension, PIP, Attendance Allowance and Carer's Allowance will automatically receive the money before Christmas - if they meet the eligibility criteria during a specific qualifying period, typically the first full week in December, reports Chronicle Live. It's worth noting the DWP will issue this as a separate payment, independent of your scheduled State Pension or benefit payment, so it may arrive on a different day, reports the Daily Record. Nobody needs to apply for the additional £10 as it should automatically appear in the account where you normally receive your benefit payment or State Pension. It typically appears as 'DWP XB' on bank statements and online accounts. The £10 Christmas Bonus was introduced by Ted Heath's Conservative Government in 1972. It hasn't seen an increase since its inception over five decades ago and in today's money, it would be worth approximately £118 - when calculated using the composite price index published by the UK Office for National Statistics (ONS). Who's eligible for the £10 Christmas Bonus? To qualify for the Christmas Bonus you must live or be an 'ordinarily resident' in the UK, Channel Islands, Isle of Man, or Gibraltar, during the qualifying week of December 1 - 7 (to be confirmed). The DWP will get in touch with eligible claimants to inform them that they will receive the £10 bonus in December, although this correspondence sometimes arrives after the payment has been processed. Qualifying benefits You must also be receiving at least one of the following benefits in the qualifying week: Mobility Supplement Industrial Death Benefit (for widows or widowers) Pension Credit - the guarantee element Child Disability Payment (Scotland only) Pension Age Disability Payment (Scotland only) Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim) Personal Independence Payment (PIP) Armed Forces Independence Payment Severe Disablement Allowance (transitionally protected) Disability Living Allowance Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes) War Disablement Pension at State Pension age War Widow's Pension State Pension (including Graduated Retirement Benefit) Incapacity Benefit at the long-term rate Widowed Mother's Allowance Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes) Carer Support Payment (Scotland only) Carer's Allowance Attendance Allowance Adult Disability Payment (Scotland only) Widow's Pension Widowed Parent's Allowance Not everyone over State Pension age will receive the payment. DWP guidance on states: "If you have not claimed your State Pension and are not entitled to one of the other qualifying benefits you will not get a Christmas Bonus." The DWP has clarified that if you're part of a married couple, in a civil partnership or living together as though you are, and both of you receive one of the qualifying benefits, you will each be entitled to a £10 Christmas Bonus payment. Even if your partner or civil partner doesn't receive one of the qualifying benefits, they may still be eligible for the Christmas Bonus if certain conditions are met: you're both over State Pension age by the end of the qualifying week your partner or civil partner was also present (or 'ordinarily resident') in the UK, Channel Islands, Isle of Man, Gibraltar, European Economic Area (EEA) country or Switzerland during the qualifying week Additional criteria must also be met: You are entitled to an increase of a qualifying benefit for your partner or civil partner the only qualifying benefit you are getting is Pension Credit Claiming process You don't need to apply for the Christmas Bonus - it should be automatically credited. More information about the Christmas Bonus can be found on
Daily Record
5 hours ago
- Daily Record
Start date for new DWP Eligibility Verification and ‘monitoring' bank accounts to tackle benefit fraud
The Eligibility Verification Measure will not give DWP direct access to bank accounts or enable investigators to see how people on benefits spend their money. Earlier this year the UK Government announced 'the biggest fraud crackdown in a generation' to reduce the amount of money being lost in the welfare system. The Department for Work and Pensions (DWP) estimates the Public Authorities (Fraud, Error and Recovery) Bill will help save the taxpayer £1.5 billion over the next five years. New measures include driving bans of up to two years, for benefit cheats who repeatedly fail to pay back money they owe, powers enabling the DWP to recover money directly from fraudsters' bank accounts and Eligibility Verification, which will allow third-party organisations such as banks to flag potential fraudulent benefit claims. In a series of 11 new factsheets published by the DWP, giving more insight into how the new measures will work safely and be monitored, it confirms the UK Government will begin implementing the proposed measures from April 2026. The factsheets also include information on how safeguards, reporting mechanisms and oversight will work to ensure the 'appropriate, proportionate, and effective use of the powers'. The guidance on states: 'The Government will begin implementing the Bill measures from 2026. For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. 'DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance.' The DWP will also be able to gather information from more third-party organisations such as airlines to check if people are claiming benefits from abroad and potentially violating eligibility rules. Eligibility Verification Measure It's important to be aware the DWP will not have direct access to the bank accounts of millions of people on means-tested benefits including Universal Credit, Pension Credit and Employment and Support Allowance. The DWP will work with banks to identify people who may have exceeded the eligibility criteria for means-tested benefits, such as the £16,000 income threshold for Universal Credit - and get that information to then investigate that claimant to prevent possible overpayments and potential cases of fraud. The legislation only allows banks and other financial institutions to share limited data and excludes the sharing of transaction data, which means DWP will not be able to see how people on benefits spend their money. In fact, the factsheet explains how banks and other financial institutions could receive a penalty for oversharing information, such as transaction information. It adds: 'Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence.' Have your say What do you think about the new measure? Share your opinion in our poll and the comments below. You can also join in the conversation in our Daily Record Money Saving Scotland Facebook group here. New DWP measures to tackle fraud The new Bill will deliver on the UK Government's manifesto commitment to safeguard taxpayers' money - ensuring every pound is spent wisely and effectively: New powers of search and seizure - so DWP can control investigations into criminal gangs defrauding the taxpayer. Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. New requirements for banks and building societies to flag where there is an indication there may be a breach of eligibility rules for benefits - preventing debts accruing. All the powers will include strong safeguards to ensure they are only used appropriately and proportionately - including new inspection and reporting mechanisms. DWP will have a clearly defined scope and clear limitations for the use of all the powers it is introducing, and staff will be trained to the highest possible standards. The measures in this Bill will enable the Public Sector Fraud Authority to: Reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector. Better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers. Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud. Improve the government's ability to recover public money, through new debt recovery and enforcement powers. Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations. Improve fraud management in future emergencies by creating specialist time limited powers to be used in crisis management situations - building on lessons learned during COVID-19. The Public Sector Fraud Authority will implement a 'test and learn' approach when utilising these powers, piloting different approaches and expertise to find the best way to tackle public sector fraud.
Daily Record
5 hours ago
- Daily Record
Millions more people on low income eligible for UK Government bonus of up to £1,200
Three million people claiming certain benefits can now take advantage of the Help to Save scheme. New figures from the Department for Work and Pensions (DWP) show there are now 8 million people claiming Universal Credit. However, many working claimants may not be aware they could be eligible for a unique bonus worth up to £1,200 to boost their savings pots and help build financial resilience for the future. Due to a rule change at the start of the new financial year, some 3 million Universal Credit claimants are now eligible for the 'Help to Save' scheme. The extension of the scheme until April 2027 means more people on a low income can benefit from the scheme, which has paid out millions of pounds in bonuses to more than 500,000 people since Help to Save was launched in 2018. Some 93 per cent of scheme users have paid in the maximum £50 every month to their Help to Save account. In Scotland, 36,050 people have paid in a total of £33,584,000 into their Help to Save accounts, since September 2018. An account can be set up in just a few minutes - you don't have to deposit any money straight away - and easily managed through or the HMRC app, making it accessible to people throughout the UK. Savers who deposit the maximum amount of £2,400 over four years will (£50 per month) receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year. Help to Save in a nutshell The Help to Save scheme enables people to deposit between £1 and £50 each month earning an extra 50 pence for every £1 saved, with bonuses paid in the second and fourth years of the account being opened. Money can be withdrawn at any time, although this may affect the 50 per cent bonus payments. The bonus is determined by the highest amount held in the account. App users can view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order. Even if you're not able to set aside money for savings at the moment, open an account anyway, while you are eligible to do so, because you don't have to put any money in. How payments work You can save between £1 and £50 each calendar month - you don't have to pay in every month. Payments can be made by debit card, standing order or bank transfer. You can pay in as many times as you like, but the most you can pay in each calendar month is £50. You can only withdraw money from your Help to Save account to your bank account. How bonuses work You get bonuses at the end of the second and fourth years - these are based on how much you have saved. Example: If you put £50 in each month for the first two years - a total of £1,200 - your first bonus payment would be for £600, even if you withdraw it all (but you would need to wait until the 24th month or the bonus payment would be less). Similarly, if you then add £50 for the next two years, you would receive another £600 payment. This means that in total, you could earn a free £1,200 and if you kept the money in or the whole four years, you would receive an impressive £3,600 when the account closes. What happens after four years? Your Help to Save account will close four years after you open it. You will not be able to reopen it or open another Help to Save account. You can close your account at any time. If you close your account early you will miss your next bonus and you will not be able to open another one. Eligibility You can open a Help to Save account if you're receiving Universal Credit and you (with your partner if it's a joint claim) had take-home pay of £1 or more in your last monthly assessment period. Your take-home pay is your pay after deductions (such as tax or National Insurance). If you get payments as a couple, you and your partner can apply for your own Help to Save accounts. You need to apply separately. You also need to be living in the UK. If you live overseas, you can apply for an account if you're either a: Crown servant or their spouse or civil partner member of the British armed forces or their spouse or civil partner If you stop claiming benefits You can keep using your Help to Save account. Will it affect my benefit payments? You can continue to receive Tax Credits or Universal Credit while saving with Help to Save. For more information and to set up your Help to Save account, visit the website here.
