I'm currently looking at starting a job working 16 hours per week (or picking up 16 hours at my current job), and I'm trying to figure out how much Universal Credit (UC) I will actually receive once my earnings are factored in. I know the old 16-hour rule from Working Tax Credit no longer applies under UC, and the online benefit calculators are a bit confusing.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
If I work 16 hours a week how much universal credit will I get?
- Thread starter Harper
- Start date
Harrison023
New member
Yes, the old 16-hour rule is no longer applicable. Under Universal Credit, your payment reduces gradually based on your earnings. For every £1 you take home, your UC drops by 55p. If you have children or a health condition, a Work Allowance can help you earn a set amount before deductions start.
Here is a quick way to get a rough estimate:
- First, take an approximate monthly take-home pay. This is your wages for 16 hours a week, minus any tax or National Insurance.
- Subtract your Work Allowance (e.g., £427 if you have kids and get housing help). If you don't get a Work Allowance, skip this step.
- Multiply the remaining amount by 0.55. This gives you your Taper Deduction.
- Subtract that deduction from your maximum UC award (the amount you get when you aren't working).
Alistair Sterling
New member
The 16-hour limit is gone! With Universal Credit, your payment slowly reduces as you work. For every £1 earned, your benefit drops by 55p.
Lord Amias
Member
I'm currently looking at starting a job working 16 hours per week (or picking up 16 hours at my current job), and I'm trying to figure out how much Universal Credit (UC) I will actually receive once my earnings are factored in. I know the old 16-hour rule from Working Tax Credit no longer applies under UC, and the online benefit calculators are a bit confusing.
One of the best features of Universal Credit rather than the old regime is that you shouldn't find that you lose your entitlement overnight simply because you work 16 hours.
Rather, they charge a £1 per £1 after tax 55p "taper". If, for instance, you’re paid £180 per week, you'll be paid about £780 per month, but your reward would be reduced by approximately £429 due to UC.
Kids or assessed health condition mean that either £404 or £673 of your monthly Work Allowance are unaffected of any deductions. Overall, you'll always be able to come home with more money when you are working.
Here is a quick way to get a rough estimate:
- First, take an approximate monthly take-home pay. This is your wages for 16 hours a week, minus any tax or National Insurance.
- Subtract your Work Allowance (e.g., £427 if you have kids and get housing help). If you don't get a Work Allowance, skip this step.
- Multiply the remaining amount by 0.55. This gives you your Taper Deduction.
- Subtract that deduction from your maximum UC award (the amount you get when you aren't working).
There is no 'cliff edge' with Universal Credit, whereas with Working Tax Credits there was.
The amount you're eligible for depends on a formula:
- Standard item, housing item an/or child, minus earnings deductions. Each £1 of net "take-home" pay will result in a £0.55 reduction to your UC payment (the 55% "taper rate").
- If you have dependent children or have a disability or are LCWRA, you will get a monthly Work Allowance that is equal to either no deductions made on your first earnings (£404) or when you are not eligible for housing costs support (£673).
- Enter your exact hourly wage into the entitledto calculator, and see how much money you are entitled to.