The government plans to introduce Universal Credit in order to simplify the benefits system, and to ensure that work pays. Universal Credit will replace the current system of means-tested out-of-work benefits, tax credits and housing benefits with a single benefit.
It aims to encourage people to work by allowing them to keep more of their income as they move into work, and by introducing a smoother and clearer reduction of benefits when they increase their earnings.
It will replace:
It will not replace:
The Department for Work and Pensions' (DWP) Welfare Reform Act allows the government to gradually introduce Universal Credit between 2013 and 2017.
DWP have launched the Universal Credit partner toolkit on their website. The toolkit includes topic-based guides as well as an overview and frequently asked questions. The toolkit will be updated regularly to reflect the latest information.