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Universal credit

What is universal credit?

Universal credit is a new benefit system that will replace many of the current benefits and tax credits. It will be for individuals and families of working age whether they are in work or not working.

Why is it being introduced?

Universal credit is being introduced to simplify the benefits system. At the moment there are separate benefits for different purposes, such as child tax credits which help meet the costs of raising a child, and housing benefit to help with the costs of rent. Universal credit will be one single payment intended to meet the different types of costs.