Those who take out universal credit include those with low incomes, the unemployed, or those unable to work.
It is a benefit granted to applicants every month and includes a fixed allowance and all extras.
Universal credit was first examined by the government when the Conservatives formed a coalition with the Liberal Democrats.
However, it wasn’t introduced until 2013 when it was tested in some northwestern zip codes, with a full-service roll-out through December 2018.
Universal Credit is replacing six legacy benefits, and the transfer of individuals from these benefits to Universal Credit is not expected to be complete before 2024.
So how many people have universal credit and are claiming the benefit? Here’s what we know
How many people have universal credit?
Approximately 6 million people receive the Universal Loan Benefit, which covers those who are on low income, have no work, or simply cannot work.
Universal Credit replaces Income-Related Unemployment Allowance, Income-Related Employment and Support Allowance, Income Allowance, Employment Tax Credit, Child Tax Credit, and Housing Benefit.
The claimed amount is based on a budget and those receiving Universal Credit will receive payment once a month.
This payment consists of a standard allowance plus extras, depending on whether you have a disability, illness or other needs.
Those who claim that their circumstances are assessed each month and the funds they receive will depend on what is ascertained during the “assessment phase”.
Still, most Universal Credits applicants have received an increase in their monthly payment of £ 20 per week due to the coronavirus pandemic.
Read more: Who gets universal credit? The £ 20 per week benefit pay increase will end next week
However, this has been withdrawn as of today (Wednesday 6 October) as the government insisted that the increase was only a “temporary” measure.
Torsten Bell, CEO of the Resolution Foundation think tank, said 4.4 million households would see their incomes drop by £ 1,000 overnight.
“For 1 million households, it means an immediate loss of more than 10% of their income if we bring the basic benefit rate to its lowest level since 1990,” he wrote on the social media website Twitter.
The government has insisted that those affected and those in particular need should apply to their local council for some budget support fund money.