You are now leaving the Turn2us site. Turn2us is not responsible for content on third party sites.

Elizabeth Finn Care and Turn2us are coming together under one name. This page explains why we are doing this, what’s changing, and what’s not. Find out more.

Close



Universal Credit income and capital

Earnings

In working out the effect your net earnings and other income will have on your Universal Credit award there are two important terms: Work Allowance and Taper Rate. Earnings below your work allowance are ignored. Earnings over your work allowance will be subject to a taper of 65%.

Work Allowance

This is the amount of money that you can earn before your maximum Universal Credit award starts to be reduced.

Your work allowance is based on your needs and whether your maximum Universal Credit award contains a Housing Costs element.

If your maximum Universal Credit award does contain a Housing Costs element, your work allowance will be the lower work allowance in the table below. If it doesn't, your work allowance will be the higher work allowance.

Claimant   Higher Work Allowance Lower Work Allowance
Single Not responsible for a child or qualifying young person £111 £111
Single Responsible for a child or qualifying young person £734 £263
Single Has limited capability for work £647 £192
Couple Neither responsible for a child or qualifying young person £111 £111
Couple Responsible for a child or qualifying young person £536 £222
Couple One or both have limited capability for work £647 £192

Take the highest amount that is applicable to you. For example, if you are not responsible for a child and have limited capability for work, then the limited capability for work amount would be the highest amount applicable to you.

If you are a member of a couple, but have to make a claim as a single person, your work allowance is still the amount for couples.

Taper rate

The taper rate is the rate at which your maximum Universal Credit award is reduced as your earnings increase.

A taper rate of 65% means losing 65p of your maximum Universal Credit award for every £1 you earn over your work allowance.

Your earnings will be assessed monthly to ensure your Universal Credit award is always accurate. The assessment period begins with the first date of entitlement and will then run from the same date each month during your award.