Universal Credit is calculated based on the allowances you qualify for and how much is then taken off due to things like your other income. Here’s how it works.
Extra amounts based on your circumstances
You’ll get a standard Universal Credit allowance (based on your age and if you live with a partner) and usually one or more additional elements if you:
- live with children you are responsible for
- pay for childcare
- are an unpaid carer for at least 35 hours a week
- rent your home
- have a long-term illness or disability and are unable to work.
For more information, see our guide How much is Universal Credit? and GOV.UK – Universal Credit: What you’ll getOpens in a new window
Deductions from your Universal Credit payment
You can earn other money while claiming Universal Credit, your monthly payments might just go down the more you get. This includes income from:
- work
- a pension
- certain benefits (benefits such as Child Benefit and Disability Living Allowance don’t count).
There might also be other deductions, including if:
- you’re using your payment to repay any debts to the DWP, such as advance payments or tax credit overpayments
- you have savings and investments worth over £6,000
- you’ve been given a sanction (a penalty for not meeting the conditions of claiming, like missing appointments)
Your Universal Credit payment can change each month
You might get a different amount of Universal Credit if your income or circumstances change in the month before.
This is called your assessment period and it usually begins and ends on the same dates each month. For example, 2 January to 1 February. The start date is the date you first applied for Universal Credit.
For example, you might get more if you:
- now qualify for another element, such as having a baby
- earned less than normal, so your Universal Credit payment has a lower deduction.
You could get less (or nothing) if you:
- received a lump sum like a redundancy payment or inheritance that takes your savings over £16,000
- no longer qualify for one or more of your additional elements, such as children moving out of your home
- earned more than normal or receive your wages in the same assessment period, like being paid early before Christmas
- have a change in circumstances and your partner moves into your home, so your payment is based on both of your income.
Our guide Help managing your money if you receive benefits has budgeting help and ways to make your money go further.