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Glossary · Benefits

Universal Credit (UC)

Last reviewed:

Definition: A means-tested benefit for working-age people on low income or out of work. Replaces six legacy benefits including Housing Benefit and tax credits.

Calculated monthly based on income, savings (up to £16,000), housing costs and household circumstances. Includes work allowances and a taper rate (currently 55%) reducing the award as earnings rise.

Primary source: gov.uk/universal-credit

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