Implementing the universal credit roll out

Universal credit will replace working age means-tested benefits and tax credits from October 2013, be they in or out of work payments. It will gradually replace:

  • income-based jobseeker’s allowance;
  • income-related employment and support allowance;
  • income support;
  • child tax credit;
  • working tax credit;
  • housing benefit.

It will be paid directly the claimants monthly, and is expected to be paid to one claimant in the household.

Unlike other reforms, there is not expected to be a net reduction in benefit entitlement associated with this reform – and while there will be individual winners and losers – the average impact of the introduction will see households better off by £16 a week on average.1

Universal credit is being rolled out in four pilot boroughs from October 2013, and, according to ministers, is expected to be largely rolled out across the UK by 2017.