How earnings change Universal Credit
Universal Credit drops by 55p for every £1 you take home above your work allowance. If you have no work allowance, the 55% taper starts from your first pound. So when you earn £100 more, you keep about £45 of it.
How this is calculated
UC = standard allowance + elements − 55% × (earnings − work allowance) − other income − income from savings
| Single, under 25 | £338.58 |
|---|---|
| Single, 25 or over | £424.90 |
| Couple, both under 25 | £528.34 |
| Couple, one or both 25 or over | £666.97 |
| Each child | £303.94 |
| First child, if born before 6 April 2017 | £351.88 |
| Disabled child, lower and higher | £164.79 / £514.71 |
| LCWRA, new claims from April 2026 | £217.26 |
| LCWRA, protected rate | £429.80 |
| Carer element | £209.34 |
| Work allowance with housing help | £427.00 |
| Work allowance without housing help | £710.00 |
Savings between £6,000 and £16,000 are treated as £4.35 a month of income for each £250 or part of £250. Over £16,000 you cannot get UC.
What this calculator leaves out
- The benefit cap, which can reduce UC for households not in work enough to be exempt.
- The childcare element, which repays up to 85% of eligible childcare costs.
- The housing cost contribution for adults who live with you, and the bedroom rules for social housing.
- Deductions for advances, debts or sanctions.
- Transitional protection for people moved over from older benefits.
Universal Credit at different earnings
Monthly UC for three example households in 2026/27, with no savings and no other income. Earnings are take-home pay for the month.
| Take-home pay a month | Single, 25 or over, no children, no rent | Single parent, 1 child, rent £700 | Couple, 2 children, rent £900 |
|---|---|---|---|
| £500 | £149.90 | £1,388.69 | £2,134.70 |
| £1,000 | £0.00 | £1,113.69 | £1,859.70 |
| £1,500 | £0.00 | £838.69 | £1,584.70 |
| £2,000 | £0.00 | £563.69 | £1,309.70 |
| £2,500 | £0.00 | £288.69 | £1,034.70 |
| £3,000 | £0.00 | £13.69 | £759.70 |
Common questions
How much Universal Credit will I get if I earn £2,000 a month?
It depends on who lives with you and your rent. A single person aged 25 or over with no children and no rent help gets nothing at £2,000 take-home. A single parent with one child and £700 rent would still get some UC. The table on this page shows several households, and the calculator works out your own.
What is the Universal Credit taper rate?
55%. For every £1 you earn above your work allowance (or from the first £1 if you have no work allowance), your UC goes down by 55p.
Who gets a work allowance?
You get a work allowance if you are responsible for a child or you have limited capability for work because of a health condition. It is £427 a month if your UC includes help with housing, or £710 if it does not.
Is the two-child limit still in place?
No. The two-child limit was removed from 6 April 2026, so the child element is now paid for every child in the household.
Do I use my gross or take-home pay?
Take-home pay. Universal Credit counts earnings after Income Tax, National Insurance and pension contributions. Use the figure your employer reports for the assessment period, which is shown on your UC statement.
Why did my UC drop when I was paid twice in one month?
UC looks at the pay that arrives in each assessment period. If two paydays fall in one period, both count there, and you may get less (or nothing) that month and more the next.