🧾 Universal Credit examples (monthly estimates)
Below are simple examples to help you understand how Universal Credit can change depending on earnings, children, childcare and housing costs. For a personalised estimate, enter your exact details in the calculator above.
Single adult, no children (UK)
A single person aged 25+ with no earnings, no housing help, and low savings may receive roughly the standard allowance each month.
If you start working, UC usually reduces using the 55% taper after any work allowance (if eligible).
Couple with children (help with childcare)
A couple with 2 children may receive the standard allowance plus child elements.
If they pay for registered childcare, UC may cover up to 85% of eligible childcare costs (up to monthly limits).
Earnings reduce UC after the work allowance (if eligible) using the 55% taper.
Childcare support depends on your circumstances and what costs are eligible.
Working parent (how wages affect UC)
A single parent who works may still receive UC. UC is reduced as earnings increase, but families often have a work allowance before the taper applies.
This means you can earn some income before UC starts reducing.
Housing costs & the benefit cap
If your UC includes help with rent, your housing amount may be limited depending on your situation.
UC can also be reduced by the benefit cap, which is different inside and outside Greater London.
The calculator can apply the cap so you can see how it might affect your estimate.
Savings (capital) effect
- £0–£6,000 savings usually has no reduction
- £6,000–£16,000 usually reduces UC using a “tariff income” rule
- Over £16,000 usually means you cannot get UC
These examples are simplified. Universal Credit is assessed monthly and results can vary based on housing rules, other income, deductions, and your specific circumstances.
FAQs about Universal Credit
What is Universal Credit?
Universal Credit (UC) is a monthly benefit that can help with living costs if you’re on a low income, out of work, or unable to work. It can include extra amounts for children, childcare, caring responsibilities, health conditions, and housing costs.
How does this Universal Credit calculator work?
The calculator starts with the standard allowance and adds any elements you select (children, childcare, health, carer, and housing estimate). It then applies reductions for earnings (taper/work allowance) and savings (capital). If you choose, it can also apply the benefit cap based on whether you live in Greater London.
How accurate is this Universal Credit estimate?
This tool gives a rough estimate based on the information you enter. Universal Credit calculations can vary due to housing rules, non-dependant deductions, other income, sanctions, and how earnings are reported and assessed in your monthly period.
Does the calculator include the benefit cap?
Yes — you can switch the benefit cap check on or off. If enabled, it uses the monthly cap amount based on whether you live inside or outside Greater London and whether you’re a single adult with no children or a household with children / a couple.
How do earnings affect Universal Credit?
If you work, your UC typically reduces as earnings increase. Some households qualify for a work allowance, and after that UC is reduced using the taper rate. This means UC may still be paid even when you’re working, depending on your circumstances.
How do savings affect Universal Credit?
Savings can reduce your Universal Credit if you have more than £6,000. If you have more than £16,000 in capital, you’ll usually be ineligible for UC.