You can work as many hours as you like while claiming Universal Credit. There is no hours limit, and no cut-off point where your payment stops because of the hours you work. Universal Credit is based on how much you earn, not how many hours you work. For every £1 you earn, your payment goes down by 55p.
This matters if you are deciding whether to take a job, take on more hours, or start a course. The number people often have in mind, 16 hours, comes from older benefits. Universal Credit does not work that way, and more work always leaves you better off overall.
How much can you earn on Universal Credit?
For every £1 you earn from working, your Universal Credit payment goes down by 55p.
That is the calculation. You keep 45p of every extra pound you earn, so more work always leaves you with more money overall.
What is the work allowance?
Some people can earn an amount each month before the 55p reduction starts. This is called the work allowance.
You get one if you are responsible for a child or young person. You also get one if you have a disability or health condition that affects your ability to work.
| Your situation | You can earn each month before your payment reduces |
|---|---|
| You get help with housing costs through Universal Credit, or you live in temporary accommodation arranged by your council because you are homeless | £427 |
| Neither of those applies to you | £710 |
If you are not responsible for a child and do not have a health condition affecting your work, you do not get a work allowance. The 55p reduction applies from your first pound of earnings.
These amounts change each April.
Work out what it means for you
- Start with your monthly take-home pay.
- Take off your work allowance, if you get one.
- Multiply what is left by 0.55. That is how much your Universal Credit goes down.
Example. You have a child, you get help with housing costs, and you take home £800 a month. Your work allowance is £427. That leaves £373. Your Universal Credit goes down by £205.15, and you are £594.85 a month better off than not working.
This covers how your earnings affect your payment. Other things can also change what you receive, including money taken off for debts and the benefit cap. For a figure based on your full circumstances, use the benefits calculator on GOV.UK or ask your work coach.
What if you are self-employed?
If you are self-employed, Universal Credit is worked out differently. Instead of using what you actually earn, it can use an assumed figure. GOV.UK says: “If you’re gainfully self-employed, your Universal Credit payment may be calculated using an assumed level of earnings, called a minimum income floor.”
This can mean your payment is based on more than you really earned in a low month, so it is worth understanding before you rely on it. Read the detail on GOV.UK, self-employment and Universal Credit.
Does working affect your PIP?
Personal Independence Payment works differently. You can get PIP even if you are working, have savings, or are getting most other benefits. Taking a job or more hours does not reduce it.
Can you study while you claim?
Taking a course does not automatically stop your Universal Credit. The rules depend on the type of course and whether you study full time.
If money is the barrier rather than the rules, your jobcentre may help with course costs through the Flexible Support Fund.
Find training you can start now
If you are claiming Universal Credit you may be able to train for free. Check what you qualify for, then browse courses near you.