Universal Credit Calculator (2025/26)
How it works
Universal Credit starts with a maximum award = standard allowance + any child, housing, disability, carer and childcare elements that apply. From this, your earnings reduce the award through the taper (55p per £1 of net earnings).
If you're responsible for a child or have limited capability for work, you get a work allowance — the first £411 (with housing) or £684 (without) of monthly earnings is ignored before the taper applies.
Worked example
Lisa (single, 32) has 2 children and rents for £900/month. She earns £1,200 net.
- Max = £400.14 + £339 + £292.81 + £900 = £1,931.95
- Earnings above £411 work allowance = £789
- Taper = £789 × 55% = £433.95
- UC = £1,498/month
Who should use this
- •Working-age adults on low income or out of work
- •Families needing help with children or housing
- •People moving from legacy benefits (Tax Credits, JSA, ESA, IS, HB)
Common mistakes
- ×Forgetting to deduct income tax/NI — the taper uses NET earnings
- ×Including Child Benefit as 'income' (it's separate)
- ×Missing the work allowance when you have kids or LCWRA
- ×Assuming savings don't matter — UC stops at £16,000 in capital
Frequently asked questions
Will I get UC if I have savings?▾
You get nothing if your household has over £16,000 in capital. Between £6,000 and £16,000, every £250 above £6,000 reduces your UC by £4.35/month.
How long does the first UC payment take?▾
Usually 5 weeks from claim. You can request an Advance Payment which is then deducted from future awards.
Does Child Benefit affect UC?▾
No. Child Benefit is separate and isn't counted as income for UC.
Can I work and claim UC?▾
Yes — UC is designed to support people in work too. The taper means you're always better off working more.
What is the benefit cap?▾
An overall annual limit on benefits (£25,323 outside London / £29,128 in London for couples and lone parents in 2025/26) unless you're working enough hours.
Are migration notices for legacy benefits compulsory?▾
Yes — once you receive a migration notice you must claim UC by the deadline or lose your legacy benefits with no transitional protection.