Universal Credit Calculator

Universal Credit is assessed over a monthly period. The starting point is your maximum award: a standard allowance set by whether you claim as a single person or a couple and whether anyone is 25 or over, plus extra elements for the parts of your situation that cost money - children, eligible childcare, being a carer, limited capability for work-related activity, and rent.

The 55% earnings taper

Once you have the maximum, earnings reduce it. If your household is entitled to a work allowance - which means having a child or limited capability for work-related activity - the first slice of monthly earnings is ignored, £710 with no housing element or £427 with one. Every £1 of net earnings above that reduces Universal Credit by 55p, so you always keep at least 45p of each extra pound earned.

Other income, savings and the benefit cap

Other income such as new-style JSA or ESA and most pensions comes off pound for pound. Savings between £6,000 and £16,000 add an assumed £4.35 a month for each £250, and savings above £16,000 end entitlement. Finally the benefit cap limits the total, unless you earn at least £881 a month or your award includes the carer, disabled child or limited capability for work-related activity elements.

What this estimate does not cover

This is a good guide for a standard case. It does not work out your exact Local Housing Allowance rate, model transitional protection for people moved across from tax credits, or handle every disability premium and exception. Check your own entitlement on GOV.UK or with a free benefits adviser before relying on a figure.