Universal Credit Earnings Calculator 2026/27
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.
Self-employed? The Minimum Income Floor changes this
If you're gainfully self-employed (it's your main work, with evidence like accounts and invoices), UC may use a Minimum Income Floor — an assumed earnings level, roughly what an employed person on minimum wage would earn for the same hours — instead of your actual profit, whenever your real earnings fall below it. There's a start-up period of up to 12 months (generally available only once) where your actual monthly earnings are used and the floor doesn't apply. This calculator takes net earnings as a single number, so for self-employment below the floor, use the floor amount rather than your real profit to see what UC will actually pay.
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
Worked example
A single person with no housing element, work allowance £673.00/month, and a £1200/month UC award before any earnings:
| Net earnings | UC reduction | UC paid | Total monthly income |
|---|---|---|---|
| £0 | £0.00 | £1200.00 | £1200.00 |
| £200 | £0.00 | £1200.00 | £1400.00 |
| £400 | £0.00 | £1200.00 | £1600.00 |
| £600 | £0.00 | £1200.00 | £1800.00 |
| £800 | £69.85 | £1130.15 | £1930.15 |
| £1000 | £179.85 | £1020.15 | £2020.15 |
| £1200 | £289.85 | £910.15 | £2110.15 |
| £1500 | £454.85 | £745.15 | £2245.15 |
| £2000 | £729.85 | £470.15 | £2470.15 |
| £2500 | £1004.85 | £195.15 | £2695.15 |
| £3000 | £1279.85 | £0 | £3000 |
| £3500 | £1554.85 | £0 | £3500 |
UC stops completely once net earnings reach about £2854.82/month in this example. Enter your own award and work allowance above for your exact numbers.
Official sources
- gov.uk — What you'll get: Universal Credit — taper rate, standard allowance
- gov.uk — Universal Credit work allowances — current and historical work allowance amounts