Updated 5 October 2026: Estimate how employment earnings may reduce Universal Credit using the 2026/27 55% taper and current £427/£710 monthly work allowances. This is a simplified taper calculator, not a full Universal Credit entitlement calculator.
📊 Universal Credit Taper Calculator 2026/27
See how earnings above any applicable work allowance may reduce your monthly Universal Credit at the 55% taper rate.
Your estimated monthly taper
Your actual payment can also be affected by housing costs, children, disability/health elements, childcare, capital, other income, sanctions, advances, debts, benefit cap rules, surplus earnings, minimum income floor rules for some self-employed claimants and other deductions.
Figures checked: 5 October 2026 • 2026/27 benefit year
How does the Universal Credit taper work?
Universal Credit does not normally stop as soon as you start work. For every £1 of earnings that is subject to the taper, your Universal Credit payment is reduced by 55p. This is known as the 55% taper rate.
What is the Universal Credit work allowance in 2026/27?
If you qualify for a work allowance, the confirmed 2026/27 monthly amounts are £427 if your Universal Credit award includes housing costs and £710 if it does not include housing costs. Earnings up to the applicable allowance do not trigger the 55% earnings taper.
Who can get a work allowance?
GOV.UK says a work allowance can apply if you or your partner are responsible for a child or young person, or are living with a disability or health condition that affects your ability to work. Not every Universal Credit claimant receives a work allowance.
Example: £1,200 earnings with the £427 work allowance
If the earnings figure used for your assessment period is £1,200 and the £427 work allowance applies, £773 is above the allowance. Applying the 55% taper gives an estimated earnings-related UC reduction of £425.15.
What if I do not have a work allowance?
If no work allowance applies, the 55% taper is generally applied from the first £1 of relevant earnings. For example, £1,000 of earnings would produce a £550 earnings-related reduction before considering the rest of your Universal Credit calculation.
Why might my real Universal Credit payment be different?
Universal Credit works in monthly assessment periods. GOV.UK notes that the amount can change if you are paid more than once in an assessment period, receive different earnings each month or receive certain statutory payments. Self-employed claimants also have additional rules. Other income, savings, deductions and household circumstances can affect the final award.
Should I use gross wages or take-home pay?
Do not simply type a headline annual salary divided by 12 and assume it is exact. The safest approach for this simplified tool is to use the monthly earnings figure relevant to your Universal Credit assessment or UC statement. DWP receives earnings information for employed claimants through the PAYE system, and the rules around what counts as earnings can be more detailed than a basic gross-pay calculation.
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Important information
This MoneySavvyUK calculator isolates the earnings taper to help explain it. It does not calculate full Universal Credit entitlement and should not be used to decide whether to claim, stop a claim or change working hours. For a fuller estimate, use one of the independent benefits calculators linked by GOV.UK and check your Universal Credit account.