DWP Universal Credit: Full list of eligibility rules as claimants hit record high
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.
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