Universal Credit
Universal Credit is a payment for people over 18 but under State Pension age who are on a low income or out of work. It includes support for the cost of housing, children and childcare, and financial support for people with disabilities, carers and people too ill to work.
Benefits replaced by Universal Credit
- Jobseeker’s Allowance (income-based)
- Employment and Support Allowance (income-related)
- Income Support
- Child Tax Credits
- Working Tax Credits
- Housing Benefit (Rental)
*Disability Living Allowance is being replaced by Personal Independence Payment.
If you already receive a benefit being replaced by Universal Credit
If your circumstances change you may move to Universal Credit at that time and your existing benefits will stop.
If your circumstances do not change, you will move to Universal Credit between 2020 and 2024. You do not need to do anything now – the Department for Communities will advise you what you need to do when it is time for you to move to Universal Credit. For further information see Advice NI Social Policy Briefing Paper: Move to Universal Credit
Cross-border issues
Up until March 2022 frontier workers living South, working North could open a new Tax Credit claim, however that has now stopped and an application for Universal Credit can now be considered. Some points to note:
- Non-UK postcodes cannot be used for the online UC system but it’s OK to use the postcode of the closest Jobs and Benefits office in NI
- Proof of employment or self-employment in NI is required
- Cross-border income earned by a partner must be reported
- UC support for eligible childcare costs can be claimed for registered childcare providers in Ireland
- UC can only be paid into a UK bank account
- Self-employed and employed workers who receive payment in Euros should use a currency converter to convert the figures to Sterling (disregarding any amount charged for banking charges etc.) and use this figure to report their income via their Universal Credit account. Universal Credit do not need to see the customers payslips for this unless there is an issue (the same as any other claimant reporting their earnings). Euro foreign exchange reference rates is the recommended website to calculate exchange rates (historical also).
Further information on cross-border claims:
For Advisors:
- Dept for Communities memo 4/22 – Universal Credit: Claims from Frontier Workers
- RevenueBenefits.org.uk – New claims for tax credits – legislation vs practice
Cross-border Case Study – Single parent, Live North, Work South
A single parent with two dependent children is resident in NI and is a cross-border worker (part-time hours).
Due to her cross-border employment she is currently in receipt of One Parent Family Payment, Working Family Payment and Child Benefit, all payable from ROI in addition to her wages.
The lady is struggling with the cost of living and wants to check whether an application for Universal Credit from Northern Ireland would be successful.
Her potential successful claim hinges on whether the family benefits she is paid from ROI are counted as income for Universal Credit purposes.
It’s considered by the Department for Communities that these (family) benefits are disregarded as income under The Universal Credit Regulations (NI) 2016 therefore she will pass the income test. The UC application is therefore likely to result in financial help towards her housing costs and the general cost of living for her family. There is scope for her to get help with registered childcare cost too. It’s also beneficial for the passport entitlements it confers such as free school meals/uniform grants.
HOWEVER, it should also be noted that her UC payment is likely to be regarded as income for Irish social welfare payments, so in this example the One Parent Family Payment and Working Family Payment could be reduced to reflect her increased income. In these scenarios Irish Social Welfare is likely to request proof that a claim for UC has been submitted.
Please seek advice, this is a complex issue.
For Advisors: See Regulations 66 (1) (c ) and (b) of The Universal Credit Regulations NI 2016 Art. 6
Page last checked: 15 Feb 2024
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