Do you find claiming benefits stressful?

Millions of people in the UK rely on universal credit to make ends meet, but many find claiming this support extremely difficult.

According to figures from the Resolution Foundation and Changing Realities, 15m people will live in families receiving universal credit by April 2026.

That’s about one in four people below pension age (26%) and more than two in five children (42%).

But the report warns that while universal credit plays a “huge role” in modern life, it remains a “source of anxiety for many”.

Why universal credit can feel difficult

Universal credit is meant to support people on low incomes and help make work pay. 

But many households have come up against problems that make managing money harder, not easier.

Among the issues raised by the Resolution Foundation and Changing Realities are:

The five-week wait

When you first apply for universal credit, there’s usually a five-week wait for your first payment.

If you don’t have savings or a final pay cheque from your last job, this can leave you struggling to cover essentials like food, rent and bills.

Monthly payments don’t suit everyone

Universal credit is assessed monthly, but not everyone is paid monthly at work.

So your benefit payments can go up or down, which makes it harder to budget and plan ahead.

Childcare costs must often be paid upfront

If you’re a parent, you may be able to claim help with childcare costs through universal credit. 

But you may have to pay the childcare costs first and claim the money back later.

Communication can be confusing

Poor communication means not everyone understands key information like what they’re entitled to and why their payments may have changed.

What can be done?

The report is calling for changes to make universal credit work better for people who rely on it, such as:

• improving awareness and access to advance payments
• allowing more flexibility with backdated claims
• introducing crisis grants for people facing emergencies
• allowing people to choose a four-weekly assessment period instead of monthly
• assessing self-employed people over three months instead of one
• paying childcare support upfront instead of in arrears

Lindsay Judge, research director at the Resolution Foundation, said: “Universal credit now supports more than half of all children in the UK, making it more urgent than ever that the government reforms the system to make it easier to use for the 15 million people who rely on it.”

Government aiming to rebalance benefits system

The government is already trying to reform the universal credit system so more people are helped into work.

In April, a lower universal credit health element rate of £217.26 per month will be introduced for new claimants.

This will be complemented by increased investment in employment support, so people affected by the changes will get personalised help.

Meanwhile, existing universal credit health claimants, those with severe, lifelong conditions and people nearing the end of their lives, will continue getting the higher rate of £429.80.

In addition, nearly four million households will see an increase in the standard universal credit allowance above inflation.

That means a single person aged 25 or over will get around £295 extra this year, and this will rise to about £760 extra per year by the end of the decade.

This could help people cover rising living costs while looking for work or increasing their hours.

“These reforms put more money in the pockets of working people on universal credit, while ensuring those who can work get the support they need to do so,” said work and pensions secretary Pat McFadden.

“By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future.”

It’s easy to see what benefits you can claim 

Part of the problem is that isn’t always clear what financial support you might be entitled to if you’re struggling.

But we’re here to make it simple for you and help you find out what help you could receive.

Try our benefits calculator or get in touch to see if you’re getting all the support you’re entitled to.