R05 Universal Credit and the benefit cap: free practice questions

1. Question 1 of 5

   Which benefit has NOT been replaced by Universal Credit?

   Option A: Income-based Jobseeker's AllowanceOption B: Housing BenefitOption C: Income SupportOption D: Personal Independence Payment

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   The answer is D: Personal Independence Payment

   Universal Credit replaces Income Support, income-based JSA, income-related ESA, Housing Benefit, Child Tax Credit and Working Tax Credit. PIP remains a separate disability benefit.

   Why the other options are wrong

   A

   Income-based Jobseeker's Allowance is one of the benefits Universal Credit replaces.

   B

   Housing Benefit is one of the benefits Universal Credit replaces (for working-age claimants).

   C

   Income Support is one of the benefits Universal Credit replaces.

2. Question 2 of 5

   Which statement about Universal Credit is correct?

   Option A: It is paid weekly by employersOption B: It is only for people over State Pension ageOption C: It is contributory and taxableOption D: It is means-tested, tax-free and paid monthly

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   The answer is D: It is means-tested, tax-free and paid monthly

   Universal Credit is means-tested, tax-free and paid monthly. It comprises a standard allowance plus possible elements for children, childcare, caring, limited capability for work and housing.

   Why the other options are wrong

   A

   It's paid monthly by the State, not weekly by employers.

   B

   It's for people under State Pension age; Pension Credit is for those over it.

   C

   Universal Credit is means-tested and tax-free, not contributory and taxable.

3. Question 3 of 5

   Which of the following benefits is NOT counted towards the benefit cap?

   Option A: New-style Jobseeker's AllowanceOption B: Housing BenefitOption C: Income SupportOption D: Personal Independence Payment

   Show answer

   The answer is D: Personal Independence Payment

   Disability-related benefits such as PIP, DLA, Attendance Allowance and Carer's Allowance, and ESA with the support component, are excluded. JSA, Housing Benefit and Income Support count towards the cap.

   Why the other options are wrong

   A

   Jobseeker's Allowance counts towards the benefit cap.

   B

   Housing Benefit counts towards the benefit cap.

   C

   Income Support counts towards the benefit cap.

4. Question 4 of 5

   Gus was employed for three years before being made redundant and claiming Universal Credit. How long might pass before the benefit cap applies?

   Option A: The cap applies immediatelyOption B: The cap never applies to himOption C: Up to 39 weeksOption D: Up to 52 weeks

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   The answer is C: Up to 39 weeks

   Claimants who were in work for 52 weeks or more before claiming get a grace period of up to 39 weeks before the cap applies.

   Why the other options are wrong

   A

   Because he worked for 52 weeks or more, he gets a grace period before the cap applies.

   B

   The cap can apply to him once the grace period ends.

   D

   52 weeks is the work test for the grace period, not its length; the grace period is up to 39 weeks.

5. Question 5 of 5

   What must out-of-work Universal Credit claimants accept?

   Option A: A claimant commitment setting out steps to prepare for and seek workOption B: A medical examination every month for as long as they are claimingOption C: A reduction in their future State Pension for each month they claimOption D: A requirement to sell their home within a year

   Show answer

   The answer is A: A claimant commitment setting out steps to prepare for and seek work

   Claimants accept a claimant commitment, agreed with a work coach, setting out steps to prepare for and look for work. In-work claimants also accept one.

   Why the other options are wrong

   B

   Monthly medical examinations aren't a requirement of Universal Credit.

   C

   Claiming Universal Credit doesn't reduce future State Pension entitlement.

   D

   Claimants aren't required to sell their home within a year.

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