The cost of living in the UK is at an all time high in the UK, so there is no shame in needing support in covering your expenses, especially if you are the sole head of a household and raising children. When I became a single mum I did not utilise my access to state support and over the last years and months I have gradually improved my financial situation to a place that I do not qualify for it now, but I wish I had been more proactive in seeking support when I needed it most, rather than almost completely burning out working every hour of the day as a new single mum. The first piece of advice I give to new single mums is to find out what help and support is out there for them. You can read my full guide to benefits for single mums here, and below I talk through the basics of universal credit, so you can see if it might be an avenue of support for you.
What is Universal Credit?
Universal Credit is a comprehensive welfare benefit system in the UK designed to support individuals and families with low incomes or those who are out of work. It replaces the following six legacy benefits: Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, and Working Tax Credit.
How does Universal Credit work?
Universal Credit is paid monthly (or twice a month for some people in Scotland) directly into your bank account. The amount received depends on your circumstances, including income, savings, and household composition. It includes support for housing costs, children, and childcare, as well as additional amounts for disability or caring responsibilities. In general, if you have over £16,000 in savings you will not qualify, whereas if you have below £6,000 in savings you may be able to claim the maximum amount, depending on other financial circumstances.
Who qualifies for Universal Credit?
To be eligible for Universal Credit, you must:
- Be 18 or over (with some exceptions for 16-17 year olds)
- Be under State Pension age
- Live in the UK
- Have less than £16,000 in savings
- Be out of work or on a low income
What is the upper salary limit for claiming Universal Credit?
There is no specific salary range that automatically qualifies or disqualifies someone for Universal Credit in the UK. Eligibility depends on various factors including income, savings, and individual circumstances. However, as your earnings increase, your UC payment gradually decreases. For every £1 you earn from working, your Universal Credit payment goes down by 55p. This is known as the “taper rate”.
Some people are eligible for a “work allowance” – an amount they can earn before deductions start to be made from their Universal Credit. The monthly work allowance is £379 if you get help with housing costs. The work allowance applies if you are responsible for a child or have limited capability for work.
There’s no limit to how many hours you can work while claiming Universal Credit. Payments are calculated based on earnings, not hours worked. The total amount of benefits you can receive is capped at: £25,323 a year for couples and single parents in Greater London, and differs by region based on living costs.
Eligibility and payment amounts are calculated based on individual circumstances. To get an accurate estimate of potential Universal Credit entitlement, it’s recommended to use a benefits calculator or consult with a benefits advisor.
How do you apply?
The application process for Universal Credit is primarily online. After using a benefits calculator to see how much you might be entitled to, you can follow these steps.
- Set up an online account at GOV.UK
- Complete the online application form, providing details about your circumstances, income, and housing costs (you’ll need to add income such as CMS payments, too)
- Verify your identity online or in person
- Book and attend an appointment with a work coach
- Agree to a set of commitments to receive your payments
If you need help applying, you can contact the Universal Credit helpline or use the Citizens Advice Help to Claim service.
Benefits of UC for single mothers
Universal Credit can be particularly helpful for single mothers in the UK for several reasons. Firstly, it adapts to changes in circumstances, making it easier to manage varying income from part-time or flexible work. Universal Credit can cover up to 85% of childcare costs, making it easier for single mothers to work or increase their working hours. Single parents also receive a work allowance, allowing them to earn a certain amount before their Universal Credit payment starts to reduce. The online system allows for easy management of claims, reporting changes, and communicating with work coaches.
Universal Credit also includes an element for housing costs, which can be crucial for single mothers managing household expenses, or figuring out how they can afford to set up separate households when separating from their children’s other parent.
Income Reporting and Deductions
When claiming Universal Credit, it is important to accurately report all sources of income each month during your assessment period. This includes wages from employment or self-employment, child maintenance payments, benefits, and profits from freelance or zero-hours contracts. If your income varies month to month, for example due to irregular freelance work or bonuses, report the actual amounts earned each period as Universal Credit payments will be recalculated accordingly. Earnings reported through PAYE are usually automatically included, but you should always verify the amounts shown in your online account. Regarding deductions, Universal Credit payments can be reduced not only based on your earnings but also due to other factors such as advance payments (which function as repayable loans), sanctions for failing to meet claimant commitments, recovery of historical overpayments, or direct deductions for rent arrears. It is essential to keep good records and report changes promptly to avoid overpayments or penalties impacting your benefits. This is particularly important for freelance mums, of which there are many!
Frequently Asked Questions (FAQs) about Universal Credit for Single Mums
Who can claim Universal Credit as a single mum?
You must be 18 or older (with some exceptions for younger carers), live in the UK, have less than £16,000 in savings, and be on a low income or unemployed to qualify.
Can I claim Universal Credit if I work full-time or part-time?
Yes, there’s no limit on working hours. However, your Universal Credit payment reduces gradually by 55p for every £1 earned over your work allowance. Single parents usually have a higher work allowance, allowing some earnings before payments reduce.
How much will I receive?
Payments consist of a standard allowance (£316.98 per month under 25, £400.14 over 25 as of April 2025) plus extra amounts for children, childcare (up to 85% of eligible costs), and housing.
What if I have more than two children?
Additional payments for children born after 6 April 2017 are generally limited to two, but you may still receive support for more if claimed before this date or under specific conditions.
How does Universal Credit handle childcare costs?
You can claim up to £951 per month for one child or £1,630 for two or more children, covering most childcare expenses from registered providers if you’re working.
Can I get help with housing costs?
Yes, Universal Credit can include a housing element to help with rent or mortgage interest payments, based on local housing allowance rates.
How quickly will I get my Universal Credit payments?
The first payment usually arrives about five weeks after applying, though you can request an advance payment if you need help sooner.
What happens if my income or circumstances change?
You must report changes promptly via your online account. Universal Credit payments are adjusted monthly based on your updated income, earnings, or household situation.
Can I get support if my child or I have a disability?
Yes, additional amounts are available for disabilities, including a disabled child element and Personal Independence Payment (PIP).
What if I don’t have internet access to apply?
You can apply in person at your local Jobcentre Plus or seek help from the Universal Credit helpline or services like Citizens Advice.
Don’t be afraid to seek the help and support you need.
Main photo by Diane Helentjaris on Unsplash