Employment Income limit - Universal Credit

Sunnyuk5

Hi,

I'm currently employed full time and in receipt of universal credit due to my circumstances.

Is there a limit when universal credit payments stop? Or is it until my entitlement is 0 through the taper rate calculation for each £1 earned?

For example, let's say I have a net income of £2,600 a month, would universal credit payment stop or would it still depend if there is still any entitlement left after deducting 55p or 63p for each £1 earned from my entitlement?

Thanks.

calcotti

There is no fixed earnings limit. It depends on when the tapered deduction reduces the amount payable to nil.

Therefore your limit depends on how your UC claim is made up. The different bits of your claim are added up to give you a maximum entitlement.

Certain income, such as other benefits or pension income, are deducted in full and reduce your UC payment.

In general, for earnings, there is a deduction of 55% of any earnings received. However, if your claim includes children and/or you have Limited Capability for Work a Work Allowance is applied This means that some of the earnings are ignored. The amount that is ignored depends whether or not you are getting help with rent.

(Note - The taper rate is always 55% not 63%, 63% was an older rate.)