How much can I earn before my Universal Credit stops in 2026/27?

Full answer

Universal Credit does not have a simple earnings cut-off; instead it tapers away as you earn more. For 2026/27 the taper rate is 55%, so for every GBP 1 of net earnings above your work allowance, your payment falls by 55p. You only get a work allowance if you are responsible for a child or have limited capability for work, and there are two levels: a higher one if your award does not include help with rent, and a lower one if it does. Without children or a health condition, the taper applies from the first pound you earn. Your payment reaches zero, and so stops, once 55% of your earnings above the work allowance exceeds your maximum award. Worked example: imagine your maximum Universal Credit award is GBP 1,000 a month and you have a work allowance of GBP 400. The first GBP 400 of monthly earnings is ignored. After that, each pound reduces your award by 55p, so it takes about GBP 1,818 of additional earnings (because GBP 1,818 x 0.55 is roughly GBP 1,000) before the award is fully tapered away. That means total monthly earnings of around GBP 2,218 would end your payment in this example. Higher maximum awards, for example larger families or those with high rent, can be earned alongside higher wages before support stops. Pension contributions reduce the earnings counted in the taper, which can keep you eligible for longer. Use a budget planner to model how a pay rise or extra hours change your overall income, and check the rates on GOV.UK.

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More answers

• How does the Universal Credit taper rate work in 2026/27?
• What is the Universal Credit work allowance?