Universal Credit: How much can I earn before Universal Credit is reduced?
UNIVERSAL CREDIT aims to help people who are on a low income or are unemployed, so how much can you earn before Universal Credit payments are reduced?
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Universal Credit claims have rocketed due to the coronavirus pandemic. And with the UK now officially in a recession, the Government has warned further unemployment is possible, and more people will likely need to apply for Universal Credit in the coming months.
How much can I earn before Universal Credit is reduced?
There is no limit to how many hours you can work and still be able to receive Universal Credit payments.
However the amount you earn will affect your Universal Credit payments.
As your income increases, your Universal Credit payment will reduce.
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For every £1 you earn, your Universal Credit payments will decrease by 63p.
The Government website includes a number of benefit calculators you can use to find out how your earnings could affect Universal Credit payments.
You can access these independent benefits calculators HERE.
While claiming Universal Credit, you will be subject to an assessment period every month, and you must report any change in earnings.
Your Universal Credit payments will reduce until you are earning enough not to claim the benefit anymore.
You should be contacted before your Universal Credit payments are stopped.
And if your earnings decrease after this, you will be able to claim Universal Credit again.
If you are working, how often you are paid can also affect your Universal Credit payments.
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During an assessment period if you are paid more than once your earnings may be considered too high to receive a Universal Credit payment.
You will be told if this is the case, and you may need to reapply if you want to continue receiving the benefit.
You may be able to earn a certain amount of money before your Universal Credit is reduced, depending on your personal circumstances.
This is called the work allowance, and it differs depending on your situation.
What is a work allowance?
You may be eligible for a work allowance if you or your partner are responsible for a child or young person.
You may also be eligible for a work allowance if you are living with a disability or health condition that affects your ability to work.
If you get help with housing costs, your monthly work allowance is £292.
If you do not get any help with housing costs, your monthly work allowance is £512.