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How your wages affect your payments

 




If you or your partner are working, how much Universal Credit you get will depend on how much you earn. There’s no limit to how many hours you can work and still get Universal Credit.

If your wages go up, your Universal Credit payment will reduce. If you stop working or your wages go down, your payment will increase.

There are different rules if you’re self-employed.

For every £1 you earn from working, your Universal Credit payment goes down by 55p. Your income will be your wages plus your new Universal Credit payment.

Use a benefits calculator to see how your Universal Credit changes if your wages go up.

Most employers will report your wages for you. You will normally only need to report monthly earnings if you’re self-employed.


If you have a disability, health condition or have children

You can earn a certain amount before your Universal Credit starts to be reduced if you or your partner are either:

This amount is called a ‘work allowance’. How much you can earn before your Universal Credit payment is reduced depends on whether you get housing costs.

If you get help with housing costs, your payment will start to reduce when your monthly wages reach £404.

If you do not get help with housing costs, your payment will start to reduce when your monthly wages reach £673.

How often and how much you’re paid

The amount of Universal Credit you get is calculated each month. This is called your ‘monthly assessment period.’

Your Universal Credit amount should stay the same if your:

  • employer pays you the same amount each month
  • employer pays you on the same date
  • personal circumstances do not change

Your Universal Credit amount will be affected if you:

  • do not get paid during a monthly assessment period
  • get paid more than once in a monthly assessment period
  • earn a different amount in each monthly assessment period

You can check how much Universal Credit you’ll be paid by signing in to your online account.

Read more about Universal Credit and earnings.

If your Universal Credit payment stops because your wages increased

As you or your partner’s wages increase, your Universal Credit payments will reduce until you’re earning enough to no longer get Universal Credit. Your payments will then be stopped. You’ll be told when this happens.

If your wages decrease after this, you could become eligible for Universal Credit again.

If it’s been 6 months or less since your last Universal Credit payment, you’ll automatically start getting payments again. If it’s been more than 6 months, you’ll need to reapply for Universal Credit.

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