Universal Credit earnings calculator
See how take-home pay could reduce Universal Credit in one monthly assessment period. The tool shows the 55% taper separately, so the calculation is easy to check against a statement.
How the calculation works
If no work allowance applies, net earnings are multiplied by 55%. If a work allowance applies, it is subtracted first and only the remainder is tapered. The current 2026/27 allowances are £427 where the UC award includes housing costs and £710 where it does not.
GOV.UK confirms the 55% earnings rule, while the DWP 2026/27 benefit-rate tables publish the work allowances. Figures checked 7 September 2026.
Why your actual payment can differ
Universal Credit starts with a maximum award for the household, then accounts for earnings, some other income, capital and further deductions. Pay dates can also put an unusual number of weekly, fortnightly or four-weekly wages into one assessment period. Self-employed claims use additional rules, including the Minimum Income Floor in some cases.
For the full structure, use the Universal Credit payment builder. Read working while on Universal Credit for fluctuating pay and work allowances.
Common questions
How much Universal Credit will I lose if I earn £1,000 a month?+
With no work allowance, the simplified earnings deduction is £550. With the £427 housing-cost work allowance it is £315.15; with the £710 no-housing-cost work allowance it is £159.50. Your actual payment also depends on the maximum award, other income, benefit cap and deductions.
What is the Universal Credit taper rate in 2026/27?+
The earnings taper is 55%. Universal Credit is reduced by 55p for each £1 of net earnings above any work allowance that applies.
Who gets a Universal Credit work allowance?+
A household can normally have a work allowance if it is responsible for a child or young person, or a claimant has limited capability for work. The 2026/27 allowance is £427 when the UC award includes housing costs and £710 when it does not.
Is this a full Universal Credit calculator?+
No. It isolates the employed-earnings taper so you can understand one line of a UC statement. Use an independent benefits calculator for a whole-household estimate and check the actual statement for the decision.