Veterans and Universal Credit: What to Expect
Leaving the forces and finding yourself applying for Universal Credit can feel like a significant shift. The system is designed for civilians and can feel unfamiliar to those whose working lives have been structured entirely by the military. This article covers the basics and flags some of the specific points that are relevant to veterans.
What Is Universal Credit?
Universal Credit is a means-tested benefit that combines several previous benefits, including Jobseeker’s Allowance, Housing Benefit and Employment and Support Allowance, into a single monthly payment. It is available to people who are on a low income or out of work, and the amount you receive depends on your circumstances, including whether you have children, whether you are renting and whether you have a health condition or disability that limits your ability to work.
When Can You Claim?
You can claim Universal Credit as soon as you leave the forces, provided you meet the basic eligibility criteria. If you receive a terminal bonus or redundancy payment, this may affect how much you are entitled to, as savings and capital above a certain threshold can reduce or stop your payments.
Resettlement grants and certain other service-related payments may be treated differently for Universal Credit purposes. It is worth checking with a benefits adviser or Citizens Advice before making your claim if you have received any lump sum payments.
The Waiting Period
There is normally a five-week wait between making your first Universal Credit claim and receiving your first payment. This can create real difficulties for those who have just left the forces. You can apply for an advance payment during this period, which will be repaid from your future Universal Credit payments. It is worth applying for the advance if you need it, as waiting five weeks without income is not necessary.
Declaring Your Veteran Status
When you make a claim, you can declare that you are a veteran. This is worth doing as it flags your circumstances to the DWP and may trigger additional support or referrals. Some Jobcentres have specific staff with experience of working with veterans.
Veterans and the Work Search Requirement
If you are fit for work, Universal Credit will normally require you to take steps to look for employment. If you are in the process of completing resettlement training or have a realistic prospect of work in the near future, it is worth discussing this with your work coach at your Jobcentre, as there can be some flexibility in how the work search requirement is applied. Being upfront with your work coach about your situation, including any resettlement courses or interviews you have lined up, tends to produce a more reasonable and tailored approach than waiting for the requirement to be enforced rigidly.
Housing Costs and Universal Credit
Universal Credit includes an element to help with housing costs if you are renting, paid either directly to you or, in some circumstances, to your landlord. The amount depends on your circumstances, including the area you live in and the type of accommodation you have. If you have recently left service accommodation, it is worth budgeting carefully for the transition, as housing costs in the private sector are often significantly higher than they may have appeared while you were serving, and the housing element of Universal Credit does not always cover the full cost of rent.
Common Mistakes to Avoid
A common mistake is delaying a claim because of uncertainty about eligibility, which only extends the five-week wait for a first payment. Another is failing to report changes in circumstances promptly, such as starting part-time work or a change in living arrangements, which can affect your payment and, in some cases, lead to overpayments that need to be repaid later. Keeping your Universal Credit journal updated and responding to any messages from your work coach promptly will help avoid unnecessary complications.
If you are unsure about any aspect of your claim, getting advice early can prevent problems further down the line. Citizens Advice is a good first port of call for any queries about Universal Credit. Veterans’ Gateway can also provide guidance and refer you to specialist support if needed. Heroes Hub has further information on finances in the first year after leaving the forces, available at heroeshub.uk.com.