If I Work 20 Hours a Week: How Much Universal Credit Will I Get?

Balancing work and Universal Credit payments can be a challenge for many people in the UK. If you’re working part-time, you might wonder, “If I work 20 hours a week how much Universal Credit will I get?” This is a crucial question, especially if you’re looking to supplement your wages with Universal Credit to meet your living costs.

In this blog, we’ll explore how Universal Credit is calculated when you work 20 hours a week, how much you might receive, and whether it’s worth working part-time while claiming this benefit.

By the end, you’ll have a clear understanding of how your income affects your Universal Credit payments and how to make the most of both.

Can I Claim Universal Credit if I Work 20 Hours a Week?

Yes, you can absolutely claim Universal Credit while working 20 hours a week. Unlike older benefits, there is no specific “hours limit” for Universal Credit. Instead, your eligibility depends on how much you earn, not how many hours you work.

Whether you work 10, 20, or 40 hours per week, you can still claim Universal Credit as long as your income remains within the eligibility threshold. The amount you receive will be affected by your earnings, and your Universal Credit payment will decrease as you earn more.

Key Takeaways

• No limit on working hours: You can work as many hours as you want and still claim Universal Credit.
• Eligibility depends on earnings: It’s not about how many hours you work but how much you earn.
• Work Allowance and Taper Rate apply: If you earn over the work allowance, 55p is deducted from every £1 you earn.

How Universal Credit is Calculated if You Are Working?

If you’re working and claiming Universal Credit, the amount you receive will be affected by how much you earn, your household circumstances, and the support you’re entitled to.

Unlike older benefits, Universal Credit allows you to continue working with no restrictions on the number of hours, but as you earn more, your Universal Credit payments reduce.

This is part of the government’s strategy to encourage people to work, as you will always be financially better off when you’re earning an income. Let’s break down how this calculation works step-by-step.

1. Your Income Affects Your Universal Credit

The amount of Universal Credit you receive depends on how much you and your partner (if applicable) earn each month. Earnings from jobs, self-employment, or other sources of income are taken into account. The more you earn, the less Universal Credit you receive.

If you or your partner are working, the Department for Work and Pensions (DWP) will consider the following when calculating your payments:

• Your wages (from employment or self-employment)
• Your partner’s wages (if applicable)
• Any additional benefits, pensions, or savings you may have

The DWP applies a work allowance and taper rate to reduce your payments accordingly. These two factors are crucial to understanding how much support you can receive.

What is the Work Allowance?

The Work Allowance is the amount of money you can earn each month before your Universal Credit payments are reduced. If you qualify for a work allowance, you can keep a certain portion of your wages before any deductions are made from your Universal Credit.

You are eligible for a Work Allowance if:

• You are responsible for a child or young person.
• You have a disability or a health condition that affects your ability to work.

The amount of your Work Allowance depends on your living circumstances — specifically, whether or not your Universal Credit payment includes support for housing costs.

Your Circumstances	Work Allowance (Monthly)
You get help with housing costs	£404 per month
You don’t get help with housing costs	£673 per month

Universal Credit Taper Rate and Work Allowance Explained

What is the Taper Rate?

The taper rate is the percentage by which your Universal Credit is reduced as you earn more money. For every £1 you earn over the work allowance, 55p is deducted from your Universal Credit payment.

What is the Work Allowance?

The work allowance allows certain people to earn a specific amount before the taper rate is applied. This allowance is available if you have children or a disability.

Circumstance	Monthly Work Allowance
With housing costs	£344
Without housing costs	£573

Is It Worth Working 20 Hours a Week With Universal Credit?

Yes, in most cases, it is worth working 20 hours a week while claiming Universal Credit. Even though your Universal Credit is reduced, you’ll still be better off financially.

Benefits of Working 20 Hours a Week

• More Total Income: Your wages plus Universal Credit payment mean you’re earning more.
• Childcare Support: If you have children, you can claim up to 85% of childcare costs through Universal Credit.
• Greater Financial Independence: Relying on benefits alone is limiting, but working part-time offers flexibility and independence.

What Are the Factors That May Affect Your Universal Credit Payments?

• Wage Increases: If your employer increases your hourly rate, your Universal Credit will reduce accordingly.
• Changes in Hours: If you increase or decrease your hours, it affects your earnings, which will be reported to DWP.
• Household Changes: If your partner starts working, their income will be counted.

What Are the Common Mistakes to Avoid When Working and Claiming Universal Credit?

• Not Reporting Changes in Earnings: Your payments may be too high or too low if you don’t report changes.
• Misunderstanding the Assessment Period: Payments are calculated monthly, not weekly, so avoid confusion.
• Not Taking Advantage of Childcare Support: If you have children, you could be missing out on a substantial amount of support.

Conclusion

If you work 20 hours a week, you can still claim Universal Credit. While your payment is reduced as you earn more, you still receive some financial support. The taper rate and work allowance are essential concepts to understand, as they determine how much Universal Credit you receive.

To get a personalized estimate of your Universal Credit payment, use the GOV.UK Universal Credit calculator.

FAQs About Universal Credit

How much can I earn before Universal Credit is affected?

If you qualify for a work allowance, you can earn up to £344 or £573 before the taper rate is applied.

How does the assessment period affect my payments?

Your earnings during the monthly assessment period determine how much Universal Credit you receive.

Can I still claim Universal Credit if I work full-time?

Yes, but if your income is too high, you may no longer be eligible for Universal Credit.

What happens if I increase my hours from 20 to 30?

Your earnings will increase, but your Universal Credit payment will be reduced according to the taper rate.

Can Universal Credit be backdated?

No, Universal Credit payments are not backdated unless there is a valid reason for delay.