What is the Universal Credit work allowance?
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In short: The work allowance is the amount you can earn each month before Universal Credit reduces by 55p per £1 — it applies if you have children or limited capability for work. Higher and lower rates depend on whether housing costs are in your award.
Content updated:
Without a work allowance, earnings usually reduce UC from the first pound (subject to any surplus earnings rules).
The allowance helps make part-time work pay — use the UC calculator to model a specific job.
Childcare costs can be claimed separately up to 85% of eligible fees.
Primary source: gov.uk/universal-credit
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