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This publication is available at https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances
1. Universal Credit tops up your earnings
When you start work, the amount of Universal Credit you get will gradually reduce as you earn more. But unlike Jobseeker’s Allowance, your payment won’t stop just because you work more than 16 hours a week.
2. Work Allowance
In some cases, you may be eligible for a work allowance. A work allowance is the amount that you can earn before your Universal Credit payment is affected.
Once you earn more than your work allowance your Universal Credit payments will be reduced at a steady rate. Your payments will change automatically as your earnings change.
From 11 April 2016, the range of work allowances available was simplified. You will be eligible for a work allowance if you (and/or your partner) either:
- have responsibility for a child and/or
- have limited capability for work
|The monthly work allowances are set at:|
|£192||If your Universal Credit includes housing support|
|£397||If you do not receive housing support|
These work allowance rates will apply to all Universal Credit claimants.
If you have earnings but you (or your partner) are not responsible for a child or do not have limited capability for work you will not be eligible for a work allowance.
3. Total income
Your total income will be your earnings plus your new Universal Credit payment. The more you earn, the higher your total income will be.
Your claim continues when you start work, so you can take temporary or seasonal jobs without worrying about making a brand new claim or any gaps between paydays as you move in and out of work.
4. Other support to help you earn more
The government’s aim is to support people on Universal Credit to increase their earnings and ultimately move off benefits altogether. If you are able to, we will help you to take every opportunity to earn more and work more.
These changes were brought in along with a range of measures to ensure you can earn more. These include:
- bringing in the National Living Wage - which is set to reach over £9 an hour by 2020
- increasing the personal tax allowance to £11,000 from April 2016
- increasing and providing support for eligible costs of childcare in Universal Credit to 85% and doubling the free early years provision to 30 hours a week for working parents of 3 and 4 year olds