Universal Credit is designed by the Department for Work and Pensions (DWP) to provide a regular amount of financial assistance. The payment is issued once a month to those who are eligible to receive the sum. However, a large proportion of those claiming Universal Credit do have some degree of income they gain from paid employment.
How much Universal Credit a person receives from the DWP is dependent on their earnings if they are employed.
While there is no limit to how many hours a person can work when claiming Universal Credit, there are some rules to bear in mind.
For every £1 a person earns from employment, their Universal Credit payment will reduce by 63p.
However, the rules also state individuals are permitted to earn a certain amount before this kicks in, but only in particular circumstances.
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This will be the case if someone is living with a health condition which affects their ability to work, or is responsible for a child or young person.
Known as the ‘work allowance’, this is lower if a person receives aid with housing costs.
It is £512 for those who do not get help with housing costs, and £292 for those who do.
Payment can eventually stop because a person’s earnings increase to the level where they can no longer claim Universal Credit.
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