Guidance

Universal Credit for employers: how it helps your business

Information for employers about Universal Credit and the changes it brings.

Universal Credit is a new single monthly payment for people who are on a low income or out of work. It brings together a range of current benefits and tax credits.

This video provides an introduction to Universal Credit and how it could benefit your business.

How Universal Credit works for employers

Universal Credit will increase the financial benefits of work and provide your business with a more flexible workforce.

We’ve changed the rules so that people aren’t limited by the hours they can work, or discouraged from taking temporary or short-term work. It ends the 16 hour a week rule that may previously have led people to restrict the hours they work to avoid losing their benefits.

What Universal Credit means for employers

Having access to a more flexible and responsive workforce can help your business with the challenges of filling vacancies.

Universal Credit payments automatically adjust each month based on the real time PAYE information you report to HMRC, so it’s important that you report this information accurately and on time.

Jobcentre Plus work coaches will encourage claimants to discuss with their employers how they can increase their chances of earning more. This could be by improving their skills which may help them to take on more responsibilities. You may find your employees asking for more hours or for help with building their skills. You can play a role in this – helping your business become more productive.

More information

We have a range of guides that explain how Universal Credit works for employers, including:

If your employees have any queries about Universal Credit, please encourage them to visit www.gov.uk/universal-credit.

Find more information about the work of DWP, including Universal Credit, by visiting our LinkedIn page or by following DWP on Twitter.

Jobcentre Plus also offers a wide range of help for employers including support for recruitment – find out more about what’s available.

Published 2 November 2015
Last updated 12 December 2018 + show all updates
  1. Updated to show that Universal Credit is now available everywhere in Great Britain.
  2. Replaced video with latest version
  3. First published.