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Oct 2013



Universal Credit is a new single monthly payment for people on low incomes or out of work. It aims to ensure that people are better off working that claiming benefits.

This means that they would not lose all their benefits if they take up employment and are receiving a low income and their Universal Credit would only reduce gradually as their income increases.


Employers will benefit from this in a number of ways.

It will be easier to fill jobs either short time or with irregular hours.

It will mean that more flexible working hours can be put in place for existing employees without needing to recruit new employees and the expense that would incur.

Employers will be able to access people registered on Universal Jobmatch  and thereby fill vacancies more quickly.

Universal Credit Payments are linked to the amount an employed Universal Credit claimant has earned. Since RTI (Real Time Information) was introduced HMRC already has the required information on each employee.

Universal Credit is being rolled out gradually and a national roll out will occur from October 2013.

Between April 2013 and 2017 Universal Credit will replace Income based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Housing Benefit. By 2017 it will be paid to everyone who has the right to receive it.

Posted byGerri McGinleyinPayroll