Universal Credit Information

Paying Your Rent on Universal Credit

Information below sets out whether you will need to claim UC and how to do this.  If you do need to claim or are already currently claiming Universal Credit, help with housing costs will be paid directly to you.  You will then need to set up a Direct Debit to ensure your rent is paid on to South Derbyshire District Council.

If you wish,  you can access our UC Helper tool which will take you through the steps of checking your eligibility for Universal Credit,  what to do to apply and what documentation you will need to support your application. The information below will tell you at a glance if you need to apply or not.

If:

  • You are NOT currently living in South Derbyshire and receiving Housing Benefit -or-
  • You are NOT currently receiving any help with your housing costs (e.g. living with family)-or-
  • There are changes in your circumstances other than moving house, e.g. end of a job

Please visit Universal Credit | South Derbyshire District Council to make a claim for Universal Credit. Please be aware that the benefits you are currently receiving (excluding DLA/PIP and Child Benefit) will stop as soon as you make your Universal Credit claim. 

If you are currently receiving Universal Credit:

Please advise the DWP, either via your journal or through your work coach, that you will be moving into a council property for which you will be liable for the rent.  You will be required to provide details of your tenancy start date and rental amount.

If you are:

  • Currently living in South Derbyshire AND
  • currently receiving Housing Benefit AND
  • there are no other changes to your circumstances other than moving house
  • Or you are not of working age and are currently living outside of South Derbyshire

You do not need to make a claim for Universal Credit. You will continue to receive Housing Benefit. Please complete a Change of Circumstances Form to transfer this benefit to your new property.
Universal Credit FAQs

What is Universal Credit?
Universal Credit is a new benefit system that is replacing many of the current benefits and tax credits. It is for individuals and families of working age whether they are in work or not working.

Do I need to claim Universal Credit?
Please see the following information on the following pages on whether someone in your circumstances needs to claim at this time.

How do I claim Universal Credit?
Universal Credit can be claimed online only by visiting www.gov.uk. You will be asked a few questions then will be directed to make your claim. The claim will take approx. 60 minutes to complete and then you will be asked to make a phonecall to arrange your first Work Coach appointment.

Will everyone need to claim Universal Credit?
All working age tenants who are making a new claim to any of the benefits under Universal Credit will need to make and manage their claim online. Claimants currently on these benefits will eventually be moved over to Universal Credit. Tenants of pensionable age are exempt.

How do I pay my rent when on Universal Credit?
Your Tenancy Agreement requires you to pay your rent in advance. Universal Credit is paid to you monthly in arrears so you may accrue arrears whilst you are waiting for your Universal Credit Housing Element payment to come through.  If that is the case, once you have your UC in payment, you will need to pay your monthly rent, plus a small amount on top to clear these arrears.  You will need to set up a Direct Debit or Standing Order to make these payments

Will I still need to pay Bedroom Tax?
Your Universal Credit Housing Element will be reduced if you face the Spare Room Subsidy (Bedroom Tax) by 14% or 25% as was with Housing Benefit. You will need to make extra payments in order to top up your payments.

My partner has moved in and is already on Universal Credit – how will this affect me?
The basic rule is – once on Universal Credit, always on Universal Credit. If you partner moves in with you, a joint claim of Universal Credit will need to be made. You will need to inform the DWP via your online journal. Please call us as soon as possible if this happens to you.

I need help getting a bank account – what do I do?
We can assist you with setting up a basic bank account with the high street banks to ensure you receive your Universal Credit and that you can make payments to your rent account by Direct Debit or Standing Order. Please see the below information on banks which offer this type of account.

Bank

Account Name

Barclays

Basic Current Account

Santander

Basic Current Account

NatWest*

Foundation Account

RBS

Basic Account

Nationwide

Flex Basic

Co-Op

Cashminder

Lloyds & Halifax*

Basic Account

TSB

Cash Account

Yorkshire Bank

Readycash Account

Important

Please remember to ask for these accounts by name and provide relevant evidence. This includes ID (Birth Cert, Benefit Letter, Passport, Driving License) and a recent Utility Bill (usually within the last 3 months)

*NB: Lloyds, Halifax and NatWest don’t offer these accounts directly, you must have already been ‘turned down’ for a current account. Being ‘turned down’ for an account will have an adverse effect on your credit rating.

You can find further information about Universal Credit and make a claim here: Universal Credit | South Derbyshire District Council