Universal Credit and earnings
The amount you earn, and how often you're paid your wages, can affect your Universal Credit.
How your earnings affect your payments
If you or your partner are working, how much Universal Credit you get will depend on how much you earn each month. These are called your ‘assessment periods’.
You can check how much Universal Credit you will get each month in the statement in your online account.
Your Universal Credit payment will reduce as your wages go up, and increase again if you stop working or your wages go down.
For every £1 you or your partner earns your payment goes down by 55p. This amount will be automatically deducted from your Universal Credit payment.
See how your wages affect your payments.
There are different rules if you’re self-employed.
The amount of Universal Credit you get can be affected if you:
- are responsible for a child or have a health condition
- do not get paid in an assessment period
- get paid more than once in an assessment period
- earn a different amount each assessment period
If you’re responsible for a child or have a health condition
You can earn a certain amount before your Universal Credit is reduced if you or your partner are either:
- responsible for a child or young person
- living with a disability or health condition that affects your ability to work
This amount is called a ‘work allowance’.
If you do not get paid or get paid more than once in an assessment period
Your Universal Credit can be affected if you do not get paid or get paid more than once in an assessment period. This could happen if:
- you’re paid monthly and your monthly payday changes
- you’re paid weekly, every 2 weeks or every 4 weeks
If you’re paid monthly and your payday changes
If you’re paid monthly and your payday changes, for example to avoid a weekend, your Universal Credit will usually be adjusted automatically so that you get your usual amount.
If it looks like you’ll get too much or too little Universal Credit, tell us in your online account. In some circumstances Universal Credit can be adjusted so that you get your usual amount.
If you’re paid weekly, every 2 weeks or every 4 weeks
Your Universal Credit may be affected if you have more paydays than usual during an assessment period.
| How often your payday is | The impact |
|---|---|
| Every 4 weeks | Once a year, you’ll have an assessment period with 2 paydays |
| Every 2 weeks | Twice a year, you’ll have an assessment period with 3 paydays |
| Every week | Four times a year, you’ll have an assessment period with 5 paydays |
When you get more wages than usual in an assessment period you may get:
- less Universal Credit for that month
- no Universal Credit, because you’re earning enough to no longer claim it
If you earn a different amount each assessment period
For each assessment period your Universal Credit is adjusted to take your wages into account.
If you earn less in an assessment period, your Universal Credit will usually increase.
If you earn more, your Universal Credit will usually reduce.
If the amount you earn in an assessment period rises above a certain amount, your Universal Credit will stop. This is because you’ve reached the limit you can earn and still be entitled to Universal Credit. The amount is based on your individual circumstances.
If you earn £2,500 or more over your earnings limit
If you earn £2,500 or more over your limit then:
- you will get no Universal Credit
- the amount over £2,500 will be carried over and counted as earnings in the next assessment period
- you are said to have ‘surplus earnings’
This could happen if you’re self-employed or get a bonus, for example.
You will not get any Universal Credit until your earnings, including the amount that’s carried over, go under the limit and you become entitled to Universal Credit again.
If your wages reduce enough for you to be eligible for Universal Credit within 5 months, your Universal Credit payment will be automatically restarted. If it’s after 5 months you will need to apply again.
If you were in a couple who then separated, any surplus earnings will be divided equally between the 2 of you. Your half will be taken into account if you make a new single or joint Universal Credit claim.
Earnings and your responsibilities
When you claim Universal Credit you agree what you need to do to:
- prepare for and look for work
- increase your earnings, if you’re already working
Details of what you must do in return for Universal Credit are in your ‘claimant commitment’.
The ’Administrative Earnings Threshold’ (AET)
The AET is an amount you can earn that affects what you’re asked to agree to.
For individual claimants, the AET is £892 per assessment period.
Additionally, if you’re in a couple, the combined couple’s AET is £1,437 per assessment period.
If you earn below the AET
If you as an individual earn below the AET in an assessment period, you must:
- show you’re actively looking for more, or better-paid work
- be available for work
unless you’re part of a couple whose combined earnings are at, or above, the couple’s AET.
If you’re part of a couple whose individual earnings are below the individual AET, and whose combined earnings are below the couple’s AET, both of you must:
- show you’re actively looking for more, or better-paid work
- be available for work
You will also get regular personalised support from a ‘work coach’. Your work coach can help you with job search strategies, interview skills and connecting with employers.
If you earn above the AET
If you earn the individual AET or more, you do not need to actively look for more or better paid work.
Additionally, if you’re in a couple, and your combined earnings are equal to or higher than the couple’s AET, you or your partner do not need to actively look for more or better-paid work.
The Conditionality Earnings Threshold (CET)
The CET is an amount that’s based on the number of hours you can reasonably be expected to work or do work-related activities. It is based on your circumstances.
If you earn between the AET and your CET, you do not need to have regular meetings with your work coach. But you can ask to meet one if you think it would help you to search for work.
If you earn above your CET, you will not have regular meetings with a work coach.
Self-employed earnings
If you have self-employed earnings, these will not count towards the AET.
Find out more about Universal Credit if you’re self-employed.
Updates to this page
Published 6 November 2023Last updated 13 May 2024 + show all updates
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From 13 May 2024 the Administrative Earnings Threshold (AET) went up for individuals and couples. For individual claimants, the AET is £892 per assessment period. Additionally, if you're in a couple, the combined couple's AET is £1,437 per assessment period.
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From 1 April 2024 the Administrative Earnings Threshold (AET) went up for individuals and couples. For individual claimants, the AET is £743 per assessment period. Additionally, if you're in a couple, the combined couple's AET is £1,189 per assessment period.
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Added that if you earn £2,500 or more over your earnings limit you are said to have 'surplus earnings'. Added: If you were in a couple who then separated, any surplus earnings will be divided equally between the 2 of you. Your half will be taken into account if you make a new single or joint Universal Credit claim.
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First published.