Work allowance for Universal Credit

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).

Your work allowance will depend on whether you are single or part of a couple and whether your Universal Credit includes amounts for:

  • housing costs
  • children
  • limited capability for work

The table below shows the different levels of monthly work allowance. If you don't have help with housing costs included in your Universal Credit award the higher work allowance will apply, otherwise it will be the lower work allowance. 

The work allowance levels for those with children or limited capability for work were reduced in April 2016. The work allowance was abolished altogether for non-disabled, childless claimants meaning your benefit is reduced as soon as you start earning.

Higher work allowance

pre April 2016 

(per month) 

from April 2017 

(per month)

Single claimant  - not responsible for a child or qualifying young person      £111 £0
- responsible for one or more children or qualifying young persons      £734 £397
- has limited capability for work    £647 £397
Joint claimants - neither responsible for a child or qualifying young person    £111 £0
- responsible for one or more children or qualifying young persons   £536 £397
- one or both have limited capability for work    £647 £397

Lower work allowance

pre April 2016

(per month)

from April 2017

(per month)

Single claimant - not responsible for a child or qualifying young person        £111 £0
- responsible for one or more children or qualifying young persons    £263 £192
- has limited capability for work    £192 £192
Joint claimants - neither responsible for a child or qualifying young person    £111 £0
- responsible for one or more children or qualifying young persons    £222 £192
- one or both have limited capability for work    £192 £192

 

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