Universal Credit Calculator
Estimate your monthly Universal Credit entitlement for 2026/27. Includes standard allowance, child elements, housing element, work allowance and the 55% earnings taper.
Last updated: April 2026
How Universal Credit is calculated
Universal Credit is a single monthly benefit that combines support for housing, children, and living costs. The calculation has three main stages: first, your maximum UC entitlement is worked out by adding together the relevant elements (standard allowance, child elements, housing element, etc.); second, a work allowance is subtracted from your earnings if applicable; third, 55% of your remaining earnings above the work allowance is deducted from the maximum entitlement to give your actual UC payment.
The 55% taper rate
For every £1 you earn above your work allowance, your UC payment reduces by 55p. This means you always keep 45p of each additional pound earned, which is a significant improvement on the old tax credit system but still represents a high effective marginal rate when combined with income tax and National Insurance. At a basic rate tax band income plus NI plus the UC taper, the effective marginal withdrawal rate on earnings for a UC claimant can reach 75–80% of each additional pound - a major barrier to increasing hours or wages for many claimants.
Work allowances
A work allowance is a monthly earnings threshold below which no taper applies. It is available to claimants with children or with a disability/health condition limiting their capacity to work. The higher work allowance (£673/month in 2026/27) applies where no housing element is claimed; the lower work allowance (£404/month) applies where a housing element is included. Single claimants without children or a disability have no work allowance - taper applies from the first pound earned.