Universal Credit if you're employed
You can get Universal Credit if you are over 18, under State Pension age and on a low income.
How your work and earnings affect your payments
Universal Credit does not limit the number of hours you can work. Your payments will go down as you earn more and increase again if you stop working or your earnings go down.
With Universal Credit you will keep 45p of each £1.00 you earn until your earnings are too high to get Universal Credit.
You will be able to take temporary jobs without having to make a new claim. Universal Credit will support you when you are between jobs.
To get Universal Credit you must do everything you can to find work or increase your earnings. The things you need to do will be included in Your Commitment
How Universal Credit is calculated if you're working
The amount of Universal Credit you get will be based on your circumstances, including your income and how many children you have.
You can earn a certain amount before your Universal Credit payments are reduced, if you or your partner:
- are responsible for a child or young person
- have a disability or health condition that affects your ability to work
This is called a Work Allowance. You will keep 45p of every £1.00 you earn above your Work Allowance.
This means that:
- the amount of Universal Credit you’re paid might change each month
- your payments gradually reduce as you earn more money
Your Work Allowance will be lower if your Universal Credit payment includes help with housing costs.
| Do you get help with housing costs? | Work Allowance |
|---|---|
| Yes | £411 per month |
| No | £684 per month |
Work Allowance example
If you have a disability or live in temporary supported accommodation and you don't get help with your housing costs from Universal Credit or Housing Benefit, your Work Allowance will be £684.
This means you can earn £684 before your Universal Credit payments start to reduce.
If you are claiming as a couple or have more than one job, your earnings will be added together.
If you’ve recently stopped working
If you have recently stopped working and your employer has paid your final wage in the last few weeks, this may be treated as income.
This will affect your Universal Credit payment.
How often you're paid can affect your Universal Credit
Your Universal Credit payment is based on your earnings in an Assessment Period, which is one calendar month. The first Assessment Period starts when you make your Universal Credit claim. Your Universal Credit is calculated at the end of each Assessment Period.
If you’re paid weekly, fortnightly, or every four weeks
If you’re paid every:
- four weeks – once a year, you’ll get two sets of wages in one assessment period
- two weeks – twice a year, you’ll get three sets of wages in one assessment period
- week – four times a year, you’ll get five sets of wages in one assessment period
If this happens, your earnings might be too high for you to get Universal Credit for that assessment period. You will be told if your wages are too high for Universal Credit for that assessment period and if you’ll need to reapply to continue to get Universal Credit.
If you are paid monthly, there may be times when you receive two payments of your wages in a Universal Credit assessment period. If this happens, send a message in your Universal Credit online account or phone the Universal Credit Service Centre. Messages to your online account will be answered as soon as possible during business hours.
Your employer needs to give details of your earnings on or before the date you are paid.
If your employer continually reports your earnings late or incorrectly, speak with your work coach who can tell you what you can do.
Disputed earnings
If you disagree with the information used to calculate your earned income, contact your work coach. They will ask you to provide supporting evidence, such as wage slips/ bank statements for the period you are disputing.
The information you give will be considered and checked against the information from your employer.
Check how a new job/ more pay will affect you
Use a benefits calculator to see how starting a job or increasing your earnings would affect your benefits.
When using the calculator you must enter your information correctly to get an estimate of what benefits you may be entitled to. You should seek independent advice before you make the decision to change your benefits.
If you get Universal Credit and then start work, you need to tell Universal Credit who your employer is to make sure you get the right amount.
If your payment stops because your earnings increased
As your or your partner’s income increases, your payments will reduce until you’re earning enough to no longer claim Universal Credit. Your payments will then be stopped. You’ll be told when this happens.
If your or your partner’s income decreases after this, you could become eligible for Universal Credit again. If it’s been six months or less since your last Universal Credit payment, you’ll automatically start getting payments again.
If it’s been more than six months, you’ll need to reapply for Universal Credit.
Help and support
If you would like independent help and advice on Universal Credit or any other benefit, you can visit any independent advice office or contact: