Can I Get Universal Credit if I’m Working?

Yes. You may be able to receive Universal Credit while you are working.

Universal Credit is not only for people who are unemployed.

It can also provide financial support to some people and households whose earnings are not high enough to meet their living costs.

There is no fixed number of hours you can work that automatically prevents you from receiving Universal Credit.

What matters is your wider household circumstances and income.

Why might somebody who works receive Universal Credit?

There are many situations where somebody may be working but still have a relatively low household income.

For example, you might:

• work part-time
• be on a low wage
• have had your hours reduced
• have children
• have significant childcare costs
• have housing costs
• have a partner who is not working
• have a health condition affecting your ability to work
• have caring responsibilities

Universal Credit looks at your household circumstances rather than simply asking whether you have a job.

Is there a limit on how many hours I can work?

There is no general rule saying that working a particular number of hours automatically ends your Universal Credit entitlement.

You could potentially receive Universal Credit while working full-time.

Whether you actually qualify, and how much you receive, depends on your circumstances and earnings.

As your earnings increase, your Universal Credit will normally reduce.

How do my wages affect Universal Credit?

Universal Credit uses what is known as an earnings taper.

Under the current rules, for every £1 of earnings taken into account, your Universal Credit normally reduces by 55p.

For example, an additional £100 of earnings would normally reduce Universal Credit by £55.

This does not mean everybody who earns money immediately loses 55p of Universal Credit for every £1 earned.

Some households have a work allowance.

What is a work allowance?

A work allowance is an amount you can earn before your Universal Credit starts to reduce because of your earnings.

You may qualify for one if you or your partner are:

• responsible for a child or young person, or
• living with a disability or health condition that affects your ability to work

For 2026/27, the monthly work allowance is:

£427 if you receive help with housing costs through Universal Credit, or live in temporary accommodation arranged by your council because you are homeless.

£710 if neither of those circumstances applies.

Once earnings go above the relevant work allowance, the 55% taper normally applies.

These figures can change, so always check the current rate.

What if I don’t qualify for a work allowance?

You can still potentially receive Universal Credit while working.

It simply means the earnings taper will generally apply without a work allowance first.

Whether any Universal Credit remains payable will depend on your overall award and earnings.

What if my wages change every month?

Universal Credit is normally calculated using monthly assessment periods.

This means your payment can change when your earnings change.

If you earn more during one assessment period, your Universal Credit may reduce.

If you earn less, your Universal Credit may increase again, provided you remain entitled.

This can be particularly relevant if you:

• work variable hours
• receive overtime
• work shifts
• receive bonuses
• have more than one job
• are paid different amounts each month

Your Universal Credit statement should show how your earnings have affected your payment.

Can the date I get paid affect Universal Credit?

Sometimes.

Because Universal Credit uses monthly assessment periods, the timing of wages can affect what earnings fall into a particular period.

For example, a change to your normal payday can sometimes mean more than one wage payment is recorded during an assessment period.

If your Universal Credit changes unexpectedly, check your online statement and the earnings that have been used.

If something appears wrong or you do not understand the calculation, seek advice rather than assuming the payment is correct.

Does my partner’s income count?

If you live with a partner, Universal Credit is normally assessed as a household benefit.

This means both your income and your partner’s income can affect the amount your household receives.

One partner being unemployed does not necessarily mean the household will qualify, and one partner working does not necessarily mean it will not.

A benefits calculator can help you estimate the effect of both incomes.

What if I start earning more?

As earnings increase, Universal Credit will normally reduce.

Eventually your earnings may be high enough that your Universal Credit payment falls to £0.

That does not mean you should avoid increasing your earnings simply because you receive Universal Credit.

The important thing is understanding how a change in earnings may affect your overall household income.

A benefits calculator can help you estimate this before changing hours or accepting different work.

What if my hours or income fall?

If your earnings reduce, your Universal Credit may increase, depending on your circumstances.

If you have recently:

• lost overtime
• reduced your hours
• changed jobs
• become unable to work your normal hours
• experienced another reduction in earnings

it can be worth checking your current entitlement rather than assuming your previous Universal Credit amount will remain the same.

What if I’m self-employed?

Different Universal Credit rules can apply to self-employed people.

These can include how earnings and expenses are reported and, in some circumstances, the Minimum Income Floor.

Self-employment can therefore make Universal Credit calculations more complicated.

If you are self-employed and unsure how the rules affect you, check current official guidance or seek benefits advice.

What about Statutory Sick Pay or other statutory payments?

Some statutory payments are treated as earnings for Universal Credit.

These include payments such as Statutory Sick Pay and certain maternity, paternity, adoption and parental payments.

They can therefore affect the amount of Universal Credit you receive.

If your income has changed because you have moved onto a statutory payment, it may be worth checking how this affects your overall benefit entitlement.

Should I check even if I have a job?

Yes.

Do not assume:

“I work, so I can’t get Universal Credit.”

A better question is:

“Based on my earnings and household circumstances, might I qualify?”

A free benefits calculator can give you an initial estimate.

MH360 Entitled can also help people explore benefits and financial support they may be missing.

Checking your entitlement does not commit you to making a claim.

It simply helps you understand whether support may be available.

7.9: What Benefits Might I Be Entitled To?

7.10: How Can I Check Whether I’m Missing Out on Benefits?

7.11: What Is Universal Credit?

7.13: What Help Is Available if I’m Too Ill to Work?

7.14: What Financial Support Is Available if I Have a Disability or Long-Term Health Condition?

7.15: What Benefits and Financial Help Are Available for Carers?

7.17: I’ve Had a Change in Circumstances, Do I Need to Report It?

7.31: What Help Can I Get With My Rent?

Important information

This guide provides general information and is not intended to provide benefits, financial, employment, legal or other professional advice. Universal Credit rules, rates and eligibility criteria can change, and individual circumstances can be different. Check current information from official sources or seek advice from an appropriately qualified benefits adviser before making important decisions.