Universal Credit Work Allowance: How many hours can you work on Universal Credit? | Personal Finance | Finance

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Universal Credit is a monthly payment which provides payments to those in need for day-to-day living costs. Whether claimants have low income, are out of work or cannot work, Universal Credit replaced the previously separate benefits. These include benefits like Housing Benefit and Jobseeker’s allowance.

Universal Credit is a payment to claimants who qualify, made up of a standard allowance and any extra amounts which may apply to you.

Extras include payments for Child Benefit if you have a long-standing health condition or disability, or for housing.

Your circumstances are assessed every month to ensure you are paid the correct amount.

This means if you start work or work more hours than usual this goes towards working out your entitlement.

Read More: Universal Credit: DWP addresses uplift amid legacy benefits warning

The monthly work allowances are set at:

£292 If your Universal Credit includes housing support

£512 If you do not receive housing support

If you have earnings but you (or your partner) are not responsible for a child or do not have limited capability for work you will not be eligible for a work allowance.

Once you earn more than your work allowance your Universal Credit payments will be reduced at a steady rate. This is known as the Universal Credit earnings taper.

The Universal Credit earnings taper rate is currently 63 percent.

This means for every £1 you earn over your work allowance (if you are eligible for one) your Universal Credit will be reduced by 63p.

This amount will be deducted automatically from your Universal Credit payment.





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