People with low income generally suffer a lot from financial crises in terms of tax payments. Universal credit is a way of replacing a number of existing tax credits and benefits in order to bring a perfectly tailored and all-inclusive financial support to people with low income. You can contact Universal Credit experts to get more information on the working and approval of universal credit. Here are all the benefits and tax credits included or replaced by universal credit:
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Benefits of Universal credit:
Housing benefit:
Housing benefit is actually a way to help the applicants pay the rent of their homes. Housing benefit is important for people with low income who fail to pay house rents. Universal credit can help a lot with the housing costs. It replaces the housing benefits and the amount is directly paid to the tenant from who is responsible for the payment of his own. Some housing associations and or councils are expected to make use of a wide roll of universal credit by introducing direct payment of the rent.
Income Support:
Income support is paid to people who have little income which is not sufficient to provide for the growing needs of life. Moving from income support to universal credit is highly advantageous as it will strip away the limitation of working 16 hours a day. You can work more or fewer hours after availing universal credit. You are required to explain your job plans when your youngest child is one and find a job when he turns three.
Income-based job-seekers allowance:
The income-based job-seekers allowance is another thing which is effectively replaced by universal credit.
For working sick and disabled people, universal credit replaces income-related employment and support allowance.
Working Tax credit:
Universal credit will replace your current working tax credit. The universal credit will, as a result, replace all the benefits you are currently getting from working tax credit. Unlike working tax credit which requires you to work only for a specific number of hours, universal credit does not bound you in this manner. You can easily take on more jobs or work more hours to increase your earning. The universal tax credit will adjust itself according to the rise and falls in your earnings.
Child Tax credit:
Universal credit effectively replaces all the benefits you may be getting from tax credits. In terms of child tax credit, universal credit replaces the following credits and additions:
Child element:
This credit helps in the fulfillment of costs associated with the upbringing of a child.
Disabled child addition:
Universal credit replaces the additions for the upbringing of disabled children. This child care tax credit is paid in higher or lower rates depending upon the needs of a disabled child.
Childcare cost element:
This allows you to claim back up a percentage of up to 85% of your monthly registered childcare costs. The capped limit is £646 for one child and £1,108 for two or more children if you are working during raising children.
