4 articles tagged with Taper Rate.
The Universal Credit taper rate and work allowance determine how much benefit is withdrawn as earnings rise. Combined with tax and National Insurance, some low earners keep a surprisingly small share of each extra pound.
The UC taper means you keep 45p of every extra pound you earn above your work allowance. Understanding this is key to making work pay.
How Universal Credit earnings taper works in 2026/27: 55p in every £1 above your work allowance, £673/£404 thresholds, childcare element, benefit cap and two-child limit.
Universal Credit reduces by 55p for every £1 you earn above your work allowance. Here's the full 2026/27 taper maths, worked examples for different family types, and the benefits trap explained.
