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Universal Credit Toolkit

Introduction

We’re in the middle of big changes to the benefits system. Universal Credit is gradually being

introduced and will eventually replace Housing Benefit and five other benefits. Disability Living

Allowance is being replaced by Personal Independence Payment; there have been cuts to Housing

Benefit for people with spare bedrooms and those whose benefits are over a certain level. And

other types of support like Council Tax Benefit and parts of the Social Fund have been replaced by

local support.

If you work for a charity, housing association, a local authority, or other organisation that gives

advice to the public, you are probably getting lots of questions and dealing with many issues relating

to these changes. People may be looking ahead and asking how Universal Credit will affect them

and what they need to do to get ready; such as setting up a bank account, budgeting for a single

monthly payment and paying housing costs themselves. Or they may be worried about rent arrears

or struggling to make ends meet if their benefits have been cut

This Universal Credit Toolkit provides an overview of what is currently available from the Money

Advice Service to help your customers manage the impact of benefit changes on their financial

position. It also explains how future changes will affect them and what they can do to prepare

themselves.

Further copies can be downloaded from the ‘Partner’ area of our website

www.moneyadviceservice.org.uk/partners

All of our content is written in plain English and is unbiased and impartial. Please note that our

online articles and tools are also available in Welsh. Some of our videos are available in Welsh and

also with subtitles, enabling you to play them on screens in public places.

As well as being freely available on our website, many of our articles are also available on Looking

Local, the local information service, via providers such as Virgin and Sky, or on the ‘My Council’ app

for smartphones.

In addition you can syndicate our content, tools and videos onto your own website completely free

of charge. For further information about our resources and about working with Money Advice Service, please contact: partners@moneyadviceservice.org.uk

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Universal Credit

The Money Advice Service has created a set of

resources specifically to help people get ready for

Universal Credit.

These resources include online guides, an action

plan, a video and an interactive timeline. They

are regularly reviewed and updated to reflect any

policy changes or developments.

You can find these resources at

www.moneyadviceservice.org.uk/universalcredit

Universal Credit - an introduction

This guide explains what Universal Credit is and what benefits

and tax credits it is replacing.

We provide an overview of how Universal Credit is different and

explain who is affected by the changeover and how to claim.

Universal Credit start dates

Right now, Universal Credit mostly affects newly unemployed

people in certain areas of the country. But eventually Universal

Credit will be brought in for everyone claiming the benefits and tax

credits it replaces.

This article contains a timeline, showing who will be affected and

when.

Video – Get ready for Universal Credit

This popular, easy-to-understand video gives simple guidance on

how people can prepare themselves for Universal Credit.

It covers the financial aspects as well as practical advice on accessing the internet and how to brush up on your IT skills.

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Universal Credit action plan

This step-by-step action plan outlines what people need to do to

get ready for the introduction of Universal Credit.

It includes getting a bank account, managing rent payments,

budgeting and how to get access to the internet.

Leaflet – Get ready for Universal Credit

If people are moving onto Universal Credit, there are several

things they need to do beforehand to get ready. This leaflet

explains it all in plain and simple language. It’s ideal for handing

out to your customers.

You can either download the leaflet from our website, or order free

printed copies and we'll post them out to you.

Who is affected by Universal Credit

Universal Credit is not just for people who are out of work. People

who are getting tax credits or help with their rent will also be

moved onto Universal Credit between now and 2017. It even

affects some people who are retired and getting Pension Credit.

We explain who is affected by Universal Credit and how it’s

different from the support they are getting now.

Joint Universal Credit payments for couples

When households receive their Universal Credit, it will go as a

single payment into one bank account which has to be nominated

and approved by both members of a couple.

This guide describes the changes people might need to make to

the way they budget, especially if they manage their money

separately. It also explains the pros and cons of joint accounts.

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Bank accounts

Our banking resources are designed to help people find an account that’s right for them, set up

automated payments for their rent and other essential bills, and avoid bank charges by staying in

control of their balance.

Choosing a bank account for your benefit payments

To help people receive their benefit payments and stay on top of

their rent and other bills they will be encouraged to get a bank

account that allows them to make and receive automated

payments.

This article explains the options available and the pros and cons

of each one. Action plan – Choose, open and use a bank account

This action plan explains the steps involved in getting a bank

account and setting it up to receive payments and pay regular

bills.

Video – How to choose a bank account

This video gives simple guidance on the different

types of account that are available and the features

they have. It also explains which accounts have fees

and charges. It helps people weigh up what they need from their bank account and choose the one that suits them best. Current account comparison table

Our impartial current account comparison table helps

people to search for a bank account. Details of all the

currently available basic bank accounts are included.

See all our comparison tables here:

www.moneyadviceservice.org.uk/comparisontables

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Video – How to open a bank account

This simple video explains how to go about opening a bank

account, the documents needed and what to do if the bank

turns down an application.

Video – How to make payments using your bank account

This video explains the difference between Direct Debits and

standing orders, how to set them up and keep track of them in

order to avoid fees and charges.

Budgeting

Our budgeting resources are designed to help people draw up that all-important list of their income

and their outgoings as an essential step in taking control of their finances.

How to budget for a monthly benefit payment

Universal Credit is paid monthly instead of the current mix of

weekly, fortnightly, four-weekly and monthly benefit transfers.

Many people need help managing their monthly payment.

This guide shows how to get to grips with a monthly budget and

explains why it’s an essential tool for managing money.

Video – How to use your bank account to make

budgeting easier

This video explains how to manage your money better

using a bank account.

It deals with paying priority bills, keeping track of your

balance and gives hints and tips on how to keep money

for essential things separate from spending money.

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How to avoid debt using a bank account and a prepaid card

This article is aimed at people who are struggling to meet their

living expenses each month, or overspending and leaving

themselves with unpaid bills and debts to repay.

It explains how to avoid this in the future using either a basic

bank account, a ‘jam jar’ (or budgeting bank account) and/or a

prepaid card. Managing your money using the jam jar approach

This article explains how dividing money into separate pots for different expenses is a great way for people to ensure their bills are covered and their money goes exactly where they want it to.

Budget planners

Money Advice Service now has two Budget Planners; a

shorter version which helps people determine their disposable

income very quickly, and a longer version which provides a

more detailed spending breakdown.

The Budget Planners have been designed with Universal

Credit in mind, to support people who will be budgeting

monthly for the first time.

Both Planners help people work out how much money is coming in and what they are spending it on. They highlight when someone’s spending exceeds their income and explain what can be done to address this. The Budget Planners take account of different sources and frequency of income and expenditure eg weekly, fortnightly, monthly, etc. The output can be shown as a weekly or monthly budget.

On the Budget Planner home page customers can choose the planner they’d like to complete based on how much time they have and what they want to achieve.

Other tools to help with budgeting Our Cut-back calculator helps to identify how to make savings on regular purchases.

The Money stretcher calculator is designed to help someone work out how to get their money to last

over a particular period.

Managing your money

using the jam jar approach

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Housing Benefit changes

The Money Advice Service has created a set of resources specifically to help people manage their

own rent payments and avoid getting into arrears. We’ve also created articles explaining what you

can do if your Housing Benefit has been cut.

Getting to grips with paying your own rent

Rather than seeing their Housing Benefit (or Universal Credit)

paid direct to landlords, tenants are starting to receive the benefit

themselves and are responsible for paying their own rent.

This guide explains how to manage rent payments and avoid

getting into arrears. Video – Worried about paying your rent?

This video is aimed at tenants who are worried about not being

able to manage their rent payments.

It gives advice and tips on how to keep the rent money separate

from spending money and how to make up shortfalls and avoid

arrears.

Cuts to Housing Benefit for social housing tenants

This guide explains what happens to a tenant’s Housing Benefit

if they are renting a council or housing association property and

have a spare bedroom.

It explains what is classed as a spare room and lists the

exemptions. It also describes some of the things tenants can do

if they’re struggling as a result of deductions from their Housing

Benefit.

The benefit cap

The benefit cap puts a limit on the overall amount anyone can

receive in benefits. Anything above the cap is deducted from the

tenant’s Housing Benefit.

This guide explains which benefits are taken into account when

someone’s total benefits are worked out and which can be

disregarded. It also describes some of the things people can do if

their Housing Benefit is cut as a result of the benefit cap.

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Rent arrears and problems paying your rent

This guide aims to help people who are struggling to pay their

rent get their money under control by drawing up a budget,

cutting household bills and applying for extra help.

It also provides links to further information and help for people

who have rent arrears or are facing eviction.

Leaflet - Paying your own rent

If your tenants are moving onto direct payment, it’s a good idea

to explain to them what this change will mean for them and how

they can get ready for it.

This Money Advice Service leaflet explains simply and clearly

how to manage rent payments effectively and avoid getting into

arrears. It’s ideal for handing out to tenants.

You can either download the leaflet from our website, or order

free printed copies and we'll post them out to you.

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Sorting out problems with benefits

There may be occasions when customers have problems with their benefits such as how to work

out their entitlements, how to appeal against a decision or what to do if their benefit payments are

cut or reduced or late.

Where to get help and advice about benefits

Working out what benefits or tax credits someone’s entitled to can

be tricky, especially with recent changes to the system.

This article explains where to get expert advice on entitlements or

free help to resolve a problem.

Support while waiting for benefit payments

We know what a problem it is for claimants if benefit payments

are late or if they are waiting for a payment, especially if their rent

is due or they have another priority bill to pay.

This article explains what to do in this situation and where to go

for help and support.

What to do if your benefits are cut

This article is aimed at people who have less to live on, perhaps

as a result of changes to the benefits system.

It explains how to make ends meet in the short-term, and looks at

longer-term ways of managing money better.

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Borrowing and debt

Our articles on borrowing money focus on the importance of working out whether borrowing is the

right thing to do and whether the repayments are affordable. They then explain how to choose the

right type of credit and, in particular how to avoid payday lenders and other high cost credit options.

For those who are struggling with existing debts, we explain how to prioritise and reorganise debts,

negotiate with creditors and where to go for free help and advice.

Budgeting Loans from the Social Fund

Anyone claiming benefits such as Income Support, income-based

Jobseeker’s Allowance or income-related Employment and

Support Allowance might be able to apply for a Budgeting Loan to

cover essential expenses such as clothing or footwear or furniture

for their home.

Borrowing from a credit union

Credit unions specialise in providing loans at low rates, and

helping members who are in need of financial advice and

assistance.

Even if someone has a poor credit history, they might still be able

to get a loan from a credit union.

Payday loans advice

This interactive tool explains how to find cheaper, lower risk credit

and how to tackle money problems without resorting to a payday

loan.

And for those who need help sorting out their money, it provides

advice on how to get their finances back on track.

Debt test

Our Debt test tool will help someone find out how likely they are to

have problems with their borrowing.

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Where to go to get free debt advice

This article is a source of help for anyone facing up to debt

problems. It lists many of the sources of free, confidential help and

advice that is available, and stresses that there’s no need to pay a

debt management company to sort out money worries.

Money saving tips

No-nonsense tips to help people save money around the home and when out and about.

Budgeting tips when you’re on a low income

This article is packed full of ways to make your money stretch that

little bit further each month.

It include ways to cut back, as well as how to check you’re getting

all the support you’re entitled to.

Cutting costs

This group of articles includes information on

how to make sure you’re not paying more than

you need to on water, Council Tax, gas and

electricity, home phone, broadband and mobile

phone bills.

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Telephone support

Our unbiased Money Advisers are available over the phone on 0300 500 5000. They can help set

up a budget, offer guidance on maintaining a budget, answer questions on debt (although not debt

crisis), borrowing, credit, insurance and general day-to-day money matters. They can be contacted:

Day Opening hours

Monday – Friday 8am – 8pm

Saturday 9am – 1pm

Face-to-face support

We offer face-to-face money advice across the UK. Our unbiased Money Advisers can cover most

areas of personal finance from managing and maintaining a budget, credit, borrowing, debt (but not

case work) through to saving for a rainy day and pensions. If there is sufficient demand our money

advisers can come to you to run appointments for the day. If you feel you may have suitable

demand for this please contact us on 0300 500 5000.

Syndication

At the Money Advice Service we’re keen to share our web content, allowing partners to use it on

their own websites. There is information on our partners’ page outlining different options for content

syndication. If you’re interested in using content and tools from moneyadviceservice.org.uk please

get in touch with us.

Contact details for further information

We do hope you find this toolkit helpful. We will be adding even more useful information and tools

as Universal Credit is introduced. If you have any suggestions for new materials that would help you

or your users, or if you require any further information about our working with Money Advice Service

please contact us at partners@moneyadviceservice.org.uk