What is Universal Credit?
Universal Credit is a monthly payment to help with living costs if you are on a low income, out of work, or cannot work. It replaces six older benefits including Housing Benefit, Tax Credits and income-related Jobseeker's Allowance.
How does earning affect Universal Credit?
If you have children or limited capability for work, a Work Allowance lets you keep some earnings before UC starts to reduce. Above the allowance, UC reduces by 63p for every GBP 1 earned.
What savings can I have and still claim Universal Credit?
Savings above GBP 16,000 usually mean you cannot claim Universal Credit. Between GBP 6,000 and GBP 16,000, tariff income is assumed at GBP 4.35 per GBP 250 above GBP 6,000, reducing your payment.
Related calculators:
- Child Benefit Calculator
- Take Home Pay Calculator
- Mortgage Affordability Calculator