Universal Credit work rules explained including how much you can claim

06 May 2023 , 06:00

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There are rules around working and claiming Universal Credit (Image: Getty Images)

The rules around working and claiming Universal Credit can sometimes be confusing and they can affect the amount of Universal Credit you're paid.

Universal Credit is one of the most common benefits in the UK with nearly six million people claiming as of January 2023.

There is no set level for how much money you get every month - what you get is dependent on your personal circumstances.

You can claim Universal Credit from the Department for Work and Pensions (DWP) if you are on a low-income or unemployed.

This means you can be working and claim Universal Credit at the same time.

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However, there are rules regarding working and there are many misconceptions around them.

Here we explain the working rules when you claim Universal Credit and how that can impact the amount of Universal Credit you can get each month.

The amount of Universal Credit your paid can change if you are working (Getty Images)

How much is Universal Credit?

How much Universal Credit you can get depends on your personal circumstances which include things like age, whether you live in a couple, and whether you have children.

You get a "standard allowance" and, if you're eligible, you can get additional payments on top of this to support other costs.

These are all applied to give your total figure before any deductions are then made based on if you work, if you have savings, and other measures.

As of April 2023, the standard allowance is:

• Single under 25: £292.11 per month
• Single 25 or over: £368.74 per month
• Joint claimants both under 25: £458.51 per month
• Joint claimants, one or both 25 or over: £578.82 per month

How much Universal Credit is taken off if you work?

Some people will be eligible for a "work allowance" which is a set amount you can earn before your Universal Credit is reduced.

This is normally only available to those who have responsibility for a child or has a disability or health condition that affects their ability to work.

Currently, the work allowance is:

• £379 a month - if you get help with housing costs
• £631 a month - if you don't get help with housing costs

If you work, the taper rate is the rate at which your maximum Universal Credit payment is reduced as your earnings increase.

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The taper rate is 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn.

If you get a work allowance then your Universal Credit will be reduced by 55p for every £1 you earn above your work allowance.

For example, if you are a single person under the age of 25 who does not have any other claims other than Universal Credit, your standard allowance is £292.11 each month.

If you are not eligible for the work allowance and receive £200 in wages after deductions, then your Universal Credit payment will go down by £110.

This would leave you with £182.11 for your Universal Credit payment and £200 in wages according to calculations by the charity Turn2us - overall, you would receive £382.11 a month in total.

If you received the work allowance in this circumstance, then it would be at the rate of £631 a month.

So if you earned £200 alongside your £292.11 Universal Credit payment, then you would see no deduction in your benefit payment.

This means you would receive the full £292.11 plus the £200 from your earnings - giving you a take-home pay of £492.11.

Monthly assessment

The amount of Universal Credit you get each month can change as it is calculated on your "assessment period".

Each assessment period is different and begins with the first date of entitlement and will then run from the same date each month for as long as you claim.

For example, if your first date of entitlement is March 26, your assessment period would then run until April 25 - with a new assessment period starting on April 26.

So if you earn more in your assessment period one month then you will be paid less Universal Credit, but if you less the next month your Universal Credit payment could go up.

Ruby Flanagan