How does the Universal Credit taper work?
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In short: For every £1 of net earnings above your work allowance, Universal Credit is reduced by 55p (the taper rate). Without a work allowance, the reduction starts from the first pound of earnings.
Content updated:
Work allowance applies if you have children or limited capability for work — it lets you earn a set amount before taper begins. The allowance is lower if housing costs are included in your award.
Self-employed claimants may face minimum income floor rules after 12 months.
Use our benefits estimator and Universal Credit explained guide for your situation.
Primary source: gov.uk/universal-credit
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