How Universal Credit is worked out
Universal Credit is paid monthly and is built in two steps. First DWP adds up your maximum award: a standard allowance for you (and your partner), plus extra amounts for children, rent, disability, caring and childcare. Then it takes off money for your earnings, other income and savings. What's left is your payment.
Universal Credit = maximum award − 55% of earnings above any work allowance − other income − savings income
Universal Credit rates 2026/27
These monthly amounts apply from April 2026. The standard allowance rose by more than inflation this year, and the two-child limit was scrapped from 6 April 2026, so every child now gets the child element.
| Element | Per month |
|---|---|
| Single, under 25 | £338.58 |
| Single, 25 or over | £424.90 |
| Couple, both under 25 | £528.34 |
| Couple, one or both 25 or over | £666.97 |
| Child element, first child born before 6 April 2017 | £351.88 |
| Child element, each other child | £303.94 |
| Disabled child addition, lower rate | £164.79 |
| Disabled child addition, higher rate | £514.71 |
| Health element (LCWRA), new claims from April 2026 | £217.26 |
| Health element (LCWRA), existing claims, severe conditions or terminally ill | £429.80 |
| Carer element | £209.34 |
| Childcare, maximum for 1 child | £1,071.09 |
| Childcare, maximum for 2 or more children | £1,863.16 |
Work allowance and the 55% taper
If you have children, or you get the health element, you can earn a set amount each month before your Universal Credit starts to drop. This is the work allowance:
- £427 a month if your award includes help with housing costs
- £710 a month if it doesn't
Above that, your award goes down by 55p for every £1 you take home. Without children or a health element there's no work allowance, so the 55% taper starts from your first pound of earnings. It's based on take-home pay, after tax, National Insurance and pension contributions.
Worked example
A single parent aged 30 with two children (both born after April 2017) pays £750 a month rent and takes home £1,200 a month.
- Standard allowance £424.90 + child elements 2 × £303.94 + housing £750 = £1,782.78 maximum award.
- They get housing help, so the work allowance is £427. Earnings above that are £1,200 − £427 = £773, and 55% of £773 is £425.15.
- Universal Credit = £1,782.78 − £425.15 = £1,357.63 a month.
Savings and other income
Savings under £6,000 don't affect Universal Credit. Between £6,000 and £16,000, DWP assumes you get £4.35 a month for every £250 (or part of £250) above £6,000, and takes that off your award. Over £16,000 you usually can't get Universal Credit at all. Most other income, such as Carer's Allowance, new-style JSA or ESA and pensions, is taken off pound for pound. Child maintenance and Child Benefit are ignored.
The benefit cap
The benefit cap limits how much a household of working age can get in total benefits. For 2026/27 it's £1,835 a month (£2,110.25 in Greater London) for couples and anyone with children, and £1,229.42 a month (£1,413.92 in London) for single people without children. It doesn't apply if your household takes home at least £881 a month, or if someone gets the LCWRA health element, the carer element, PIP, DLA or Attendance Allowance.
Things that change your award
- Housing: private renters get help up to the local housing allowance for their area and household size, which may be less than your full rent. Social tenants can lose some help for spare bedrooms. Homeowners don't get the housing element, but may get a loan for mortgage interest.
- Childcare: you can claim back 85% of registered childcare costs if you're in work, up to the monthly caps. You usually pay the provider first and report the cost.
- Deductions: advances, overpayments and some debts are taken from your payment, so you may receive less than the amount shown.
- Check your take-home pay first: the take-home pay calculator works out your monthly pay after tax and NI, and the Child Benefit calculator shows what you'll get on top.
For an official check, use one of the free benefits calculators listed on GOV.UK, or speak to Citizens Advice before you claim.
Frequently asked questions
How much Universal Credit will I get in 2026/27?
It depends on your household. The standard allowance is £424.90 a month for a single person aged 25 or over and £666.97 for a couple. Extra amounts are added for children, rent, disability, caring and childcare, then 55% of your earnings above any work allowance is taken off.
Has the two-child limit been removed?
Yes. The two-child limit was scrapped from 6 April 2026, so Universal Credit now includes the child element for every child, at £303.94 a month each (or £351.88 for a first child born before 6 April 2017).
What is the Universal Credit work allowance in 2026/27?
£427 a month if your award includes housing costs and £710 a month if it doesn't. You only get a work allowance if you have children or get the health element.
How much can I earn on Universal Credit?
There is no fixed limit. Your award goes down by 55p for every £1 you take home above your work allowance, until it reaches zero. The more elements you have, the more you can earn before payments stop.
Do savings affect Universal Credit?
Savings under £6,000 are ignored. Between £6,000 and £16,000, £4.35 a month is taken off for every £250 over £6,000. With savings over £16,000 you usually can't get Universal Credit.
Last reviewed October 2026 using 2026/27 figures. This is an estimate only. Your actual award depends on your circumstances, local housing allowance limits and DWP's assessment.