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Work allowance for Universal Credit

What the work allowance is and how this affects your Universal Credit

If you and/or your partner are in paid work, you might be able to earn a certain amount before your Universal Credit is affected, this is called the work allowance (see earnings taper for more information about the effect).

The work allowance levels were reduced substantially or abolished in April 2016. Before that date every claimant had a work allowance, since then only those with a disability or a child get a work allowance and the rate is based on whether someone's Universal Credit includes amounts for housing costs or not.

The table below shows the different rates of monthly work allowance for 2024/25.

Higher work allowance (for those who DO NOT get help with housing costs) Per month
Claimant  - is not responsible for a child or qualifying young person £0
- is responsible for one or more children or qualifying young persons £673
- has limited capability for work £673
Lower work allowance (for those who DO get help with housing costs) Per month
Claimant - is not responsible for a child or qualifying young person £0
- is responsible for one or more children or qualifying young persons £404
- has limited capability for work £404

 

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