The lower standard allowance rates for Universal Credit claimants who are under the age of 25 years reflects that they are more likely to live in someone else's household, have lower living costs, and have lower earnings expectations. It also reinforces the stronger work incentives that Universal Credit creates for this age group. Qualifying claimants can also receive separate elements to provide support for housing costs, children and childcare costs and support for disabled people and carers.
People claiming Universal Credit move into work faster, stay in work longer and spend more time looking to increase their earnings. It provides more financial help with childcare costs (eligible claimants are able to claim up to 85 per cent of their childcare costs, compared to 70% on the legacy system), a dedicated Work Coach, and removes the 16-hour ‘cliff edge’ for those who are working.