Universal Credit rates 2026/27: standard allowances, work allowances and the taper

Universal Credit rose in April 2026 by more than inflation for the first time in years, because the Universal Credit Act 2025 added an extra uplift on top of the usual CPI increase. This guide sets out the 2026/27 standard allowances, explains how the work allowance and taper turn your earnings into a payment, and shows how to check your own entitlement in a few minutes.

Standard allowances for 2026/27

These amounts rose by CPI inflation of 3.8% plus an additional 2.3% under the Universal Credit Act 2025, which commits to above-inflation increases in the standard allowance over several years. The extra elements, for children, housing, disability and caring, rose by CPI only.

The standard allowance is the starting point. Most claimants receive more through elements added for their circumstances: a child element for each eligible child, a housing element towards rent, a carer element, and elements for limited capability for work. Your total before deductions is called the maximum amount.

How earnings reduce the payment

Two figures decide how much of your earnings Universal Credit ignores.

Work allowance. If you have children or a limited capability for work, a set amount of monthly earnings is disregarded entirely. There are two rates: a lower one if your claim includes help with housing costs, and a higher one if it does not. Both rose with inflation in April 2026; the current figures are on gov.uk. If you have no children and no limited capability for work, you have no work allowance and the taper applies from the first pound.

Taper rate. Above the work allowance, every £1 of net earnings (after tax, National Insurance and pension contributions) reduces your Universal Credit by 55p. You always keep 45p of each extra pound earned, plus the earnings themselves.

Example: a single parent renting, with a maximum amount of £1,500 and a work allowance of £400, earns £1,200 net in a month. Earnings above the allowance are £800. The taper takes 55% of that, £440. Universal Credit paid is £1,500 minus £440, which is £1,060. Total income for the month is £2,260.

Other things that change the amount

• Savings above £6,000 reduce the payment; above £16,000 you cannot claim.
• The benefit cap limits total benefits for households where nobody works enough hours.
• Deductions for advances, rent arrears or overpayments are taken before payment.
• Assessment periods run monthly from the date you claimed, so pay dates that fall twice in one period can cut that month's award.
• The two-child limit restricts the child element for third and later children born after April 2017, with exceptions.

Checking your entitlement

Do not guess. Free, independent benefits calculators take about ten minutes and cover Universal Credit, Council Tax Reduction and other help. The government lists the approved ones on gov.uk: entitledto, Turn2us and Policy in Practice. You will need your rent, earnings, savings and household details to hand.

Run a calculation if any of these apply: your hours or pay have changed, you have moved home, a child has arrived or left, you have started or stopped caring for someone, or you have never checked at all. A calculator also shows whether you would be better off on Universal Credit than on Tax-Free Childcare, which cannot be claimed alongside it.

What to do next

• Compare your current award letter against the table above to confirm the April uprating was applied.
• Report changes in circumstances promptly through your online journal; late reporting causes overpayments that are clawed back.
• Run a benefits calculator once a year and after any major change.
• If you are struggling with deductions, ask your work coach about reducing the rate.
• Full rates and rules are at gov.uk.