If you are claiming Universal Credit and move into a job, there are a few things you need to know about that can help boost your finances:
- Depending on your circumstances, you might keep receiving all your Universal Credit payments, if you’re earning under a certain amount
- Even if your Universal Credit payments are affected, they will only reduce gradually as you earn more
- You can apply for help with childcare costs
You can look at opportunities to work extra hours and earn more money, or even take on a second job, and could still get Universal Credit payments.
Your Universal Credit payments will adjust automatically if your earnings change. It doesn’t matter how many hours you work, it’s the actual earnings you receive that count.
Support and advice from Jobcentre Plus
You’ll still have access to your Work Coach while you’re in work – they’ll never make a mandatory appointment with you that clashes with your working hours. They’re a great source for tips on how to improve your skills or get further qualifications to boost your income where you are.
Read more on Understanding Universal Credit.
How Earnings affect Universal Credit
If you are earning money from work, your Universal Credit payment will be reduced by 55p for every £1 you earn. Your total income from earnings and Universal Credit will be more than from Universal Credit alone.
If you are part of a couple and receive a joint Universal Credit payment, both your earnings will be used to calculate how much Universal Credit you get.
Find out more about how earnings affect your monthly Universal Credit payments.
If you and/or your partner are in paid work, you may be able to earn a certain amount before your Universal Credit payment starts to be affected. This is called a Work Allowance.
The Work Allowance only applies to you if:
- you have responsibility for one or more children (or qualifying young persons), or
- you or your partner have limited capability for work (a health condition or disability)
If neither of these circumstances apply to you, your Universal Credit payments could be affected and reduced gradually as soon as you start earning money from paid work.
If you are working, Universal Credit can help with the costs of childcare, no matter how many hours you work.
You may be able to claim up to 85% of your childcare costs if you’re eligible for Universal Credit and meet some additional conditions. The amounts you can receive in childcare costs are:
- a maximum of £646.35 per month for one child
- a maximum of £1108.04 per month for 2 or more children
Find out more about Universal Credit and childcare.