Universal Credit is a new benefit that will replace six existing benefits with one, single monthly payment. It is being phased in between October 2013 and October 2017. The new Universal Credit will replace child and working tax credits. Many people involved in divorce proceedings will have negotiated and agreed a financial settlement involving a payment of spousal maintenance which currently may be paid to a recipient in addition to work and child tax credits. Under the Universal Credit system, recipients who receive spousal maintenance (not child maintenance) will face a £ for £ reduction in Universal Credit. If you are affected by these changes and require advice relating to a spousal maintenance order then please contact us.
