DWP Universal Credit 202655p Taper Rate£404 / £673 Work Allowance
Universal Credit Earnings Taper Calculator
Calculate how your monthly earnings affect your Universal Credit payment using the 55p taper rate applied above your Work Allowance.
UC Monthly Taper Estimator
Compute UC reduction based on earnings, work allowance, and household setup
£
UC Taper Calculation Result:
Work Allowance
£404
Monthly FloorUC Reduced By
£437.8
55p Taper AppliedNet You Keep
£762.2
Earnings + UCUC Work Allowance & Taper Rate Summary (2025/2026)
| Household Type | Monthly Work Allowance | Taper Rate Above Allowance |
|---|---|---|
| Children or disability + housing costs | £404 / month | 55p per £1 |
| Children or disability, no housing costs | £673 / month | 55p per £1 |
| No children, no disability | £0 (no allowance) | 55p per £1 from £0 |
Frequently Asked Questions (FAQs)
The Universal Credit taper rate is 55%, meaning for every £1 you earn above your Work Allowance, your Universal Credit payment is reduced by 55p.
If you have children or a disability and receive UC housing costs, your Work Allowance is £404/month. Without housing costs, it is £673/month.
Yes. Any earnings above your Work Allowance reduce your UC by 55p per £1. Overtime, bonuses, and additional hours all count as monthly earnings reported to DWP.
Universal Credit is assessed monthly. Each assessment period uses your actual HMRC-verified earnings from that month.
If you are self-employed, DWP applies a Minimum Income Floor (MIF) based on the National Living Wage × your expected hours.