How Universal Credit works in Scotland

The introduction of Universal Credit was intended to simplify the benefits system and reduce the opportunity for fraud, but it has received much criticism, partly due to an inherent lack of flexibility.

The Scottish government is now able to use new social security powers, however, when administering Universal Credit. These devolved powers were brought in by the Scotland Act, 2016, and the new system applies to payments made on or after 4th October 2017 in ‘full service’ areas of Scotland.

A full service area is a local authority area that uses an online claiming system for Universal Credit, as opposed to the ‘live service’ in Scotland which involves administering a claim by phone. It’s intended that, eventually, all areas will become full service areas.

So how is Universal Credit paid in parts of Scotland that aren’t ‘full service’ areas, and what changes have been made under the new legislation?

What if I choose to change my Universal Credit payment?

Initially, there’s a time limit of 60 days in which to choose one or more of the changes. The offer to change disappears from your online account after 60 days, but you can still make a request to change your payment options at a later date if you wish.

This new flexibility also means you can change your mind in the future, should your circumstances change. There are benefits to yourself as a tenant and also to your landlord by having your rent paid directly, rather than into your bank account. Although you’ll still need to budget for household bills, it ensures this high priority rent payment is made without delay.

Scotland Debt Solutions has been helping Scottish residents to escape debt since 1989. We can provide more information about the Universal Credit system in Scotland, and how it affects your claim. Call one of the team for a free consultation – we operate from five offices around Scotland.