Universal Credit is a benefit given to millions of people, some of whom work, some of whom are unemployed and some of whom cannot work.
You get a standard allowance plus extras depending on if you have a disability, health condition or look after a child.
For those who work, you may see a reduction in your Universal Credit payment, depending on how much you earn and how many hours you work.
There is something called the Universal Credit ‘earnings taper’ which effectively brings down your benefit claim depending on if you meet the requirements. But, how much can I earn from a job before my Universal Credit is stopped? Here’s what we know.
Universal Credit: How much can I earn from a job before my benefit money is stopped?
The amount of Universal Credit you receive will depend on how much you’ve earned from your job and its effect on the earnings taper.
Read more: Universal Credit: What are surplus earnings and how does it affect my benefit money?
The earnings taper stipulates that for every £1 you get from your job, your Universal Credit claim will reduce by 55p.
However, if you have children or a health condition, you get a ‘work allowance’, allowing you to keep more of your Universal Credit cash.
The ‘work allowance’ comes into two bands. The first band is for those who do not get help with their housing costs. They get a ‘work allowance’ of £335. Those who do not get a higher ‘work allowance’ of £557.
In other words, if you have a health condition and do not receive help with your housing costs, you will have a ‘work allowance’ of £557.
Taking that example, say for instance, you earn £700 in your assessment period. No money will be taken on the first £557 of the £700 earned. But, for the £143 left, your Universal Credit will reduce by 55p in every £1. This means you’ll lose £78.65 from your Universal Credit claim.
There’s another thing to consider, too. Something called ‘surplus earnings’. This is where you earn £2,500 or more over the point at which your Universal Credit is stopped.
This carries over for the following assessment period until you’re at the point at which you no longer earn £2,500 or more over the threshold at which your Universal Credit payment stopped.
When this happens, the surplus will go down and once it’s gone completely, you’ll get a Universal Credit payment again.
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