HOUSEHOLDS new to claiming Universal Credit can use a ‘trick’ to help manage their budget.
Universal Credit payments are usually administered around five weeks after you make a claim.
By applying for the payments five weeks before you would normally get paid (if you work), it should mean you get the funds around pay day.
So bills such as your gas, electricity, rent or mortgage can be managed more effectively.
DWP recently confirmed that once your claim is approved, it can’t change your payment date which is dependent on when you applied.
Your Universal Credit will always be paid on this date.
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Therefore, it may be worth thinking twice about when to apply, if you can afford to be flexible.
Anna Stevenson, Turn2us’ senior welfare benefits specialist, said: “The five-week wait for a first payment is built into the design of Universal Credit, and that’s what creates so much financial strain for people at the start of a claim.
“An advance payment can help bridge the gap, but because it’s a loan that must be repaid from future benefits, it often leaves people struggling for months afterwards.
“For those in work with regular hours and monthly pay, aligning a claim with a payday can sometimes make budgeting simpler.”
However, she stressed many claimants won’t have that flexibility, especially if they need to make a claim because something unexpected has happened.
Meanwhile, Lily Aaron from the Money and Pensions service added: “You should make sure you check your Universal Credit payment date and think about the date you’re paid by work so that you’re able to cover essential bills, such as rent.
“If there’s room left in your monthly budget, starting to build up some savings could be a lifeline for things like birthdays, changing jobs or those months when larger bills are due.”
What is Universal Credit?
Universal Credit is a payment to help with your living costs and is paid monthly.
You could be out of work, working, or unable to work to get the extra support.
To claim you must:
- Live in the UK
- be aged 18 or over
- be under State Pension Age
- have £16,000 or less in money, savings and investments
The Universal Credit standard allowance is £92 per week for single people.
And £145 per week for couples.
This figure is set to rise in April 2026, after the Universal Credit Bill became law.
This means it will increase the standard allowance by more than inflation over the next four years.
The amount a claimant receives will be almost 5% higher than if it had only risen to match inflation.
The increases will be worked out by adding the inflation rate from the previous September, plus an extra fixed boost.
These extra percentages will be set at:
- 2.3% for 2026-27
- 3.1% for 2027-28
- 4.0% for 2028-29
- 4.8% for 2029-30
What is an Advance Payment?
Households waiting for their first Universal Credit payment can apply for an advance loan.
The loan can help those struggling to pay for essential living costs such as food and bills.
However, it is worth bearing in mind that it is not free cash, it is just a loan and the money does need to be paid back.
This means that the amount of Universal Credit you receive will be reduced until the cost of the loan has been repaid.
Find out how to apply in our guide.
What is managed migration?
The Government recently announced that it is moving everyone on legacy benefits to Universal Credit through a process called “managed migration”.
The process officially began back in July 2022 after a successful pilot in July 2019.
This means that you must make a claim for Universal Credit to continue to get support.
Since then, households on the five legacy benefits have been sent letters setting out how to switch to Universal Credit.
After receiving the notice, the deadline is three months for a claim to be submitted.
Failing to do this can result in benefits being stopped.
Tax credits, income-based jobseeker’s allowance, income support, and housing benefit were permanently discontinued in April.
The remaining households, currently claiming income-related Employment and Support Allowance (ESA), will be asked to move to Universal Credit by December 2025.
How to get help claiming Universal Credit
As well as benefits calculators, anyone moving from Tax Credits to Universal Credit can find help in a number of ways.
You can visit your local Job centre by searching at find-your-nearest-jobcentre.dwp.gov.uk/.
There’s also a free service called Help to Claim from Citizen’s Advice:
- England: 0800 144 8 444
- Scotland: 0800 023 2581
- Wales: 08000 241 220
You can also get help online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Extra support if you’re struggling
If you are struggling, there are more ways to get financial support.
For example, cash-strapped families can get access to money through the Household Support Fund.
The scheme has been extended multiple times with the latest round running between April 2025 and March 2026.
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Each council in England has been allocated a share of the £742million fund and can distribute it to residents in need.
Eligibility criteria varies based on where you live, but usually help is offered to those on benefits or a low income.
Will I be better off on Universal Credit
ANALYSIS by James Flanders, The Sun’s Chief Consumer Reporter:
Around 1.4million people on legacy benefits will be better off after switching to Universal Credit, according to the government.
A further 300,000 would see no change in payments, while around 900,000 would be worse off under Universal Credit.
Of these, around 600,000 can get top-up payments (transitional protection) if they move under the managed migration process, so they don’t lose out on cash immediately.
The majority of those – around 400,000 – are claiming employment support allowance (ESA).
Around 100,000 are on tax credits, while fewer than 50,000 each on other legacy benefits are expected to be affected.
Those who move voluntarily and are worse off won’t get these top-up payments and could lose cash.
Those who miss the managed migration deadline and later make a claim may not get transitional protection.
The clock starts ticking on the three-month countdown from the date of the first letter, and reminders are sent via post and text message.
There is a one-month grace period after this, during which any claim to Universal Credit is backdated, and transitional protection can still be awarded.
Examples of those who may be entitled to less on Universal Credit include:
- Households getting ESA and the Severe Disability Premium and Enhanced Disability Premium
- Households with the lower Disabled Child Addition on legacy benefits
- Self-employed households who are subject to the Minimum Income Floor after the 12-month grace period has ended
- In-work households that worked a specific number of hours (e.g., lone parent working 16 hours claiming Working Tax Credits
- Households receiving tax credits with savings of more than £6,000 (and up to £16,000)
Either way, if these households don’t switch in the future, they risk missing out on any future benefit increase and seeing payments frozen.