“How much can you earn and still get UC?” is a question that regularly comes up in discussions.
The answer, as with many benefit questions, is … it depends!
Universal Credit is a means tested benefit – so it’s all down to the claimant’s personal circumstances and income.
Note: when it’s a couple claim – ‘claimant’ refers to both members of the couple.
As UC is a means tested benefit, the first stage of the calculation is to work out the ‘Maximum UC’ the claimant could be entitled to: this represents the minimum level of income the government feels they need given their personal circumstances.
The ‘Maximum UC’ amount includes: amounts for household members (themselves and any dependent children); Elements for specific situations (e.g. carer, disabled child, limited capability for work/work related activity, child care costs); and a Housing Costs Element if the claimant is liable to pay rent.
All of the Elements to which the claimant is entitled are added together to work out what their ‘Maximum UC’ will be. This is then reduced by any earnings and/or unearned income the claimant has, until the income is high enough to mean there is no entitlement left.
This means that the higher a claimant’s Maximum UC amount, the more they can earn and still have an entitlement.
This assessment is made every month, based on the claimant’s circumstances at the end of their Monthly Assessment Period (MAP).
Read the full Housing Systems article
