Universal Credit Earnings Calculator 2026/2027

After tax and NI
From your UC journal
Clear

How the UC earnings calculator works

Universal Credit includes a 55% taper: for every £1 of net earnings above your work allowance, your UC payment is reduced by 55p. Net earnings means what you actually receive after income tax and National Insurance — not your gross wage.

Work allowance

A work allowance applies only if you are responsible for a child under 16, or have limited capability for work (LCW or LCWRA). If neither applies, UC reduces from the very first pound earned.

  • £673/month — if you qualify and do not receive a housing element
  • £404/month — if you qualify and do receive a housing element

The taper applies to all of UC

The 55% reduction comes off your total UC award — including any housing element. UC does not protect the housing portion from the taper. Plan your budget accordingly: if earnings reduce your UC significantly, the housing element shrinks with it.

What to enter

Find your UC award breakdown in your UC online journal or most recent payment statement. Enter housing element and other elements separately — the calculator uses the presence of a housing element to determine which work allowance applies.

Useful for

  • Checking whether taking on extra hours is worth it financially
  • Understanding the earnings level at which UC stops completely
  • Planning monthly income when moving into part-time or zero-hours work

Official sources