Universal credit and working

You could get universal credit (UC) to top up your income if you work.

UC could help with your:

• rent

• living costs

You might get some UC if your wages are low or your rent is high even if you work full time.

There is no set number of hours you can work each month. Your UC stops if you earn above a certain amount.

Use the Policy in Practice calculator to check if you could get UC or other benefits.

What if you're self employed?

You could get some UC if you work for yourself.

For more information, see MoneyHelper: Universal credit if you're self employed.

Do you have to look for work?

Many people have to look for work to get UC.

You might not have to look for full time work. For example, if you're disabled, have health problems or caring responsibilities.

You should not have to look for work if:

• you're pension age

• you're more than 29 weeks pregnant

• you gave birth in the last 15 weeks

• you adopted a child in the last year

• you're the main carer for a child under 3

• you have an illness or disability that means you cannot work at the moment

• you care for someone with a serious disability for at least 35 hours a week

• you or your partner already work and earn above a certain amount

Work preparation

Some people only have to plan or prepare to work in the future. For example, if:

• you are the main carer for a child aged 1 or 2

• your disability or health condition means you cannot work now but could in the future

You might have to do things like:

• update your CV

• have a skills assessment

• go on training or work experience

Work coach appointments

Check your UC journal even if you do not have to look for work.

You might have to:

• speak to your work coach on the phone

• go to see your work coach at the jobcentre

Try to attend all appointments. This is very important if it's called a 'mandatory interview'. Your benefit can be reduced if you miss it without a good reason.

Leave a message in your journal if you have a good reason why you cannot go. For example, you're ill or cannot get childcare. Tell your work coach before the appointment.

Your work plan and commitments

You agree to a 'claimant commitment' when you apply for UC.

Your claimant commitment sets out the things you need to do to get UC. For example, you might have to look for work for a certain amount of hours each week.

Check your universal credit account on GOV.UK for what you need to do.

Tell your work coach if, for example:

• you've left a violent or abusive partner

• you're homeless or at risk of homelessness

• your partner or child has died in the last 6 months

• you're unwell for up to 2 weeks

• your pregnancy affects what you can do

• a disability or longer term illness makes it hard for you to look for work

• you need to go to court as a witness or for jury service

• you're moving home or into supported housing

• you have a family or childcare emergency

• you're going to a funeral

Your work coach could make things easier for you. For example, they could reduce the number of hours that you must spend looking for work.

How do wages affect your UC payment?

How much you earn each month affects how much UC you get the next month.

Your monthly UC payment usually goes down by 55p for every £1 that you earn.

Work allowances

Families with children and some disabled people can earn some money each month without losing any UC.

This is called a work allowance. It is not an extra amount.

You can earn up to:

• £404 a month - if you get the housing element

• £673 a month - if you do not get the housing element

Check your employer reports the right amount

Most employers must report your earnings each month to HMRC. This information is passed to the Department for Work and Pensions (DWP).

You do not usually have to do this yourself. Make sure that your employer reports your wages correctly.

Check your payslip and compare it to your UC statement.

On your UC statement, take home pay is shown as your earnings after:

• tax and national insurance

• pension contributions

• your work allowance if you get one

If you claim as a couple and both work, the take home pay amount is shown as a single figure. But you can see your individual earnings below this.

If your wages are different each month

Your UC payment will go up and down. For example, if:

• you work overtime

• you work for an agency

• you're on a zero hours contract

• you get paid weekly or every 4 weeks

Your earnings in each assessment period affect how much UC you get the next month. Your assessment period is the calendar month that your UC covers.

More about universal credit payments.

If you're finding it hard to budget on UC you could:

• speak to a debt or money adviser

• ask your work coach for budgeting support

When your wages count as savings

Wages count as savings at the end of the next assessment period after you get them.

More about changes you should report.