Universal Credit Rates 2026

Universal Credit Standard Allowance 2025/26

The standard allowance is the basic amount of Universal Credit all eligible claimants receive. It covers basic living costs. Additional elements are then added on top for housing, children, disability, and caring responsibilities.

Child Elements 2025/26

If you are responsible for a child or qualifying young person, a child element is added to your standard allowance. The two-child limit means that from April 2017, the child element is generally only paid for up to two children in a household, with some exceptions (multiple births, adoption, non-consensual conception).

Disability and Health Elements 2025/26

To receive the LCW or LCWRA element, you must be assessed through the Work Capability Assessment (WCA). This involves providing medical evidence and possibly attending an assessment. There is typically a waiting period of 3 months from the start of your claim before the element begins to be paid (unless you are terminally ill).

Housing Costs Element

Universal Credit can include a housing element to help with rental costs. For private renters, the maximum housing element is set by the Local Housing Allowance (LHA) rate for your area — based on the number of bedrooms you are entitled to and the Broad Rental Market Area (BRMA) you live in.

LHA rates are set at the 30th percentile of local rents — meaning they cover rents up to the cheapest 30% of properties in the area. If your actual rent exceeds the LHA rate, you must pay the shortfall yourself.

For social housing tenants, the housing element covers your actual rent, but may be reduced by the under-occupancy charge (bedroom tax) if you have more bedrooms than you are entitled to. The bedroom tax reduces housing support by 14% for one spare bedroom and 25% for two or more spare bedrooms.

Childcare Element

Working parents claiming Universal Credit can receive up to 85% of eligible childcare costs for children under 17 (or under 16 if the child is not disabled). The maximum amounts are:

• One child: up to £1,014.63/month (85% of a maximum of £1,193.68/month in costs)
• Two or more children: up to £1,739.37/month (85% of a maximum of £2,046.32/month in costs)

Both parents (or a single parent) must be in paid work to claim the childcare element. The costs must be with an approved childcare provider (Ofsted-registered in England, or equivalent). Claims must be made within 3 months of paying the childcare costs.

Work Allowances 2025/26

The work allowance is the amount you can earn each month before your Universal Credit starts to be reduced. Work allowances only apply if you have a dependent child in your household, or if you (or your partner) have a Limited Capability for Work or LCWRA element. If you do not meet these criteria, there is no work allowance and UC is reduced by 55p for every £1 earned from the first pound.

The Taper Rate: How Earnings Affect UC

The taper rate determines how much your Universal Credit payment reduces for each additional pound you earn above your work allowance. From November 2021, the taper rate is 55p in every pound (reduced from 63p).

This means for every £1 you earn above your work allowance:

• Your UC reduces by 55 pence
• You keep 45 pence

Assessment Periods and Payment Timing

Universal Credit is assessed and paid monthly. Each monthly assessment period runs for one calendar month. At the end of each assessment period, the DWP calculates what you are entitled to based on your earnings, savings, and circumstances during that period. Payment is made around 7 days after the assessment period ends.

This means if you just claimed UC, your first payment will arrive approximately 5 weeks after you made your claim (1 month assessment period + approximately 1 week processing). This is the “five-week wait.”

Advance Payments

If you need money during the five-week wait or at any point during your UC claim, you can request an Advance Payment. Key facts:

• Maximum advance: up to 100% of your first estimated UC payment
• Repaid over up to 24 months from future UC payments
• Typical repayment deduction: approximately 15–25% of your monthly UC
• You can request an advance online through your UC journal, by phone, or at a Jobcentre

Deductions from Universal Credit

Your UC payment may be reduced to recover debts and overpayments. Common deductions include:

• UC advance repayments: Up to 25% of your standard allowance per month
• Tax credit overpayments: HMRC can recover via UC deductions
• Council tax arrears: Local authority can request deductions
• Rent arrears: Landlord can request housing element paid direct to them (Alternative Payment Arrangement)
• Utility arrears: Third party deductions for gas, electric, water
• Benefit sanctions: If you fail to meet work-related requirements

The total deductions from your UC payment (excluding sanctions) are capped at 25% of your standard allowance in most cases.

Frequently Asked Questions

Related Calculators and Guides

• Benefits Cap Calculator — Check if the benefit cap affects your UC payment
• PIP Benefits Guide — Personal Independence Payment rates and eligibility
• Housing Benefit Calculator — Calculate help with housing costs
• Income Tax Calculator — See your take-home pay
• Universal Credit Calculator UK — Full UC entitlement estimator