Universal Credit 2026/27
Last updated: March 2026 — Rates for the 2026/27 tax year
Universal Credit is the main means-tested benefit in the UK, replacing six legacy benefits: Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Housing Benefit, Child Tax Credit, and Working Tax Credit. It is paid as a single monthly payment directly into your bank account and is designed to support people whether they are in or out of work.
Your Universal Credit payment is made up of a standard allowance plus additional elements depending on your circumstances — for example, if you have children, have a disability or health condition that limits your ability to work, or are a carer. If you are working, you can keep some of your earnings before your payment is reduced. For every £1 you earn above your work allowance, your Universal Credit is reduced by 55p (the taper rate).
Capital (savings and investments) also affects your entitlement. If you have less than £6,000, it is ignored. Between £6,000 and £16,000, you are treated as having tariff income of £1 for every £250 above £6,000. If you have more than £16,000 in capital, you are generally not entitled to Universal Credit.
Universal Credit Rates 2026/27
Eligibility
- Aged 18 or over (some 16-17 year olds may qualify in certain circumstances)
- Under State Pension age
- Living in England, Scotland, or Wales
- Less than £16,000 in savings and investments
- Not in full-time education (unless certain exceptions apply)
- Have accepted a Claimant Commitment
How to Claim
Apply online at gov.uk/apply-universal-credit. You will need to verify your identity, provide bank details, and attend an appointment at your local Jobcentre Plus. Claims are assessed over a monthly assessment period.
Frequently Asked Questions
How long does it take to get Universal Credit?▾
Your first payment is usually made around 5 weeks after you submit your claim. This includes a one-month assessment period plus up to 7 days for the payment to reach your bank. If you need money sooner, you can apply for an advance payment, which is repaid from future Universal Credit payments over up to 24 months.
Can I work and still claim Universal Credit?▾
Yes. Universal Credit is designed to support people in and out of work. You have a work allowance (£427/month if you receive help with housing costs, or £710/month if you do not) before your payment starts to be reduced. After that, your UC is reduced by 55p for every £1 you earn. This means you are always better off working than not working.
What happens to my Universal Credit if I get a side hustle?▾
Self-employment income is reported monthly via your online journal. Your net profit (income minus allowable expenses) is used to calculate your earnings. If you have been self-employed for more than 12 months, a Minimum Income Floor may apply, which assumes you earn at least the equivalent of the National Living Wage for your expected hours. Use our side hustle tax calculator to estimate the impact.
Does Universal Credit cover my rent?▾
Yes, Universal Credit can include a housing costs element to help with rent. The amount depends on your circumstances, including the size of your home and the Local Housing Allowance rate in your area. If you are a private tenant, the housing element is usually capped at the LHA rate for your area.
Related Tools
Related Benefits
Child Benefit
A tax-free payment to help with the costs of raising a child.
Housing Benefit
Help with rent payments for people on a low income or claiming benefits.
Council Tax Reduction
Help with your council tax bill if you are on a low income or claiming certain benefits.
Personal Independence Payment (PIP)
A benefit to help with extra costs if you have a long-term health condition or disability.