What is universal credit?
Universal credit is a new benefit system which will replace many of the benefits and tax credits that are available today. It will be available to individuals and families who are either out of work or in work and on a low income.
Why is it being introduced?
The government has decided to introduce universal credit 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 all of the different types of costs.