How does working affect my Universal Credit?

For people receiving Universal Credit who are working or considering work.

Applies to: England, Scotland, Wales Last checked against official sources: 30 September 2026

There's no limit on hours you can work. For every £1 you earn, your Universal Credit goes down by 55p.

If you have children or a health condition affecting work, you get a work allowance before any reduction.
The work allowance is £427 a month if you get help with housing costs, or £710 if not.
Most employers report your wages automatically.
If payments stop because you earn more, they restart automatically if your earnings drop within 6 months.

Different in Scotland, Wales or Northern Ireland

Rules may be different in:

Northern Ireland: Check nidirect for Northern Ireland

Key facts

55p less per £1 earned
Work allowance £427 or £710
No hours limit

Work allowance and taper rate for 2026/27

Two rules decide how your wages change your Universal Credit:

The work allowance: an amount you can earn each month before your payment goes down. Only some people get it.
The taper rate: after that, your payment goes down by 55p for every £1 you earn. You keep 45p of each £1.

Your situation	Monthly work allowance
Child or health condition, and you get help with housing costs	£427
Child or health condition, and no help with housing costs	£710
No children and no health condition affecting work	None

You get a work allowance if you are responsible for a child or young person, or you have a disability or health condition that affects your ability to work.

Worked examples

Example 1: lone parent with housing costs. You earn £1,200 in a month. The first £427 is ignored. £1,200 minus £427 = £773. 55% of £773 = £425.15 less Universal Credit that month.

Example 2: no children, no health condition. You earn £800 in a month. You get no work allowance. 55% of £800 = £440 less Universal Credit.

Example 3: health condition, no housing costs. You earn £900 in a month. £900 minus £710 = £190. 55% of £190 = £104.50 less Universal Credit.

In every example you are better off working, because you keep at least 45p of every extra £1.

What changes the amount

Your earnings each month. Universal Credit is worked out each month, so it changes if your pay changes.
Being paid twice in one assessment period. For example, if you are paid weekly or four-weekly, some months will have an extra payday. This can lower that month's Universal Credit.
Couples. If you claim as a couple, your partner's earnings count too. Your payment goes down by 55p for every £1 either of you earns.
Housing costs. Getting help with rent lowers your work allowance from £710 to £427.

No limit on hours

There is no limit on how many hours you can work and still get Universal Credit. Most employers report your wages for you. If you are self-employed, you report your own earnings each month.

If your payments stop

If you earn too much and your payments stop, they start again automatically if it has been 6 months or less since your last payment and your earnings go down. If it has been more than 6 months, you need to make a new claim.

If you live in Northern Ireland

The same work allowance amounts (£427 and £710) and the same 55p taper apply, but the system is run by the Department for Communities.

Related guides

Where these figures come from

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Common questions

What is the Universal Credit taper rate?

Your Universal Credit goes down by 55p for every £1 you earn from work.

Who gets a Universal Credit work allowance?

You get a work allowance if you're responsible for a child or young person, or you have a disability or health condition that affects your ability to work.

Do I need to report my wages to Universal Credit?

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

What happens if I earn too much for Universal Credit?

Your payments stop, but they restart automatically if your earnings drop within 6 months of your last payment. After more than 6 months you need to reapply.

Source: How your wages affect your payments

Checked against GOV.UK on 30 September 2026

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