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.
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.
When Universal Credit is being introduced
Universal Credit is being introduced in stages. It is available in every jobcentre in Great Britain for single jobseekers. Couples and families can claim it in some areas of the country.
We have a range of guides that explain how Universal Credit works for employers, including:
a graphic summary of How Universal Credit can help your business
Universal Credit: how it helps your employees and workers – this information can help you answer any questions your employees and workers may have about Universal Credit
A guide to Universal Credit for HR and payroll staff – explains the changes and benefits Universal Credit brings for recruiters, HR managers and payroll staff
Frequently asked questions from employers – compiled from questions asked by national employers and small and medium-sized enterprises
If your employees have any queries about Universal Credit, please encourage them to visit www.gov.uk/universal-credit.
Jobcentre Plus also offers a wide range of help for employers including support for recruitment – find out more about what’s available.