How much is Universal Credit? 2025/26 rates and deductions

Short answer: for 2025/26 the UC monthly standard allowance is £316.98 (single under 25), £400.14 (single 25+), £497.55 (couple both under 25) or £628.10 (couple with either 25+). On top, you may get ‘elements’ for children, disability, caring, housing and childcare. Your award is then reduced by earnings (55% taper after any work allowance), savings, the Benefit Cap and any deductions. In Northern Ireland payments are commonly made twice a month, but the rates below are UK‑wide. This guide sets out the 2025/26 figures, key deductions and quick worked examples so you can estimate your award today. Source: GOV.UK.

2025/26 Universal Credit rates at a glance

These are the maximums before any reductions for earnings/savings, the Benefit Cap or other deductions. Sources: DWP Benefit and Pension Rates 2025/26, GOV.UK overview.

Which extra elements you could get in 2025/26

• Child element – usually paid for your first and second child. Exceptions apply (for example certain adoptions/kinship care or if children were born before 6 Apr 2017).
• Disabled child addition – £158.76 (lower) or £495.87 (higher), depending on the benefits your child receives.
• Limited capability – LCW (£158.76) applies only in specific legacy situations; most new claims that qualify get LCWRA (£423.27).
• Carer’s element – £201.68 if you provide care for 35+ hours a week for someone on a qualifying disability benefit. You can’t receive LCWRA and the carer’s element for the same person at the same time.
• Housing costs element – help with rent/service charges (or separate Support for Mortgage Interest loan for homeowners’ interest).
• Childcare costs element – up to 85% of eligible childcare, subject to monthly caps (see below). You normally pay upfront then reclaim.

Report changes promptly in your UC account so the right elements are included. Sources: GOV.UK and DWP 2025/26 rates.

How earnings change your Universal Credit: work allowances and the 55% taper

If you qualify for a work allowance, some earnings are ignored before the taper applies. In 2025/26 the monthly work allowances are £411 (if you get help with housing costs) or £684 (if you do not). UC then reduces by 55p per £1 of net earnings above your allowance. If you don’t qualify for a work allowance (no children and no limited capability), the taper applies from the first £1 you earn.

Example: you have a £684 allowance and earn £1,200 this month. Amount above allowance = £516. UC earnings deduction = 0.55 × £516 = £283.80.

Source: GOV.UK – How your wages affect your payments.

Do savings reduce UC? Capital rules and the £4.35 tariff income

Savings under £6,000 are ignored. Between £6,000 and £16,000, UC assumes monthly ‘tariff income’ of £4.35 for every £250 (or part). At £16,000+ you’re usually not entitled to UC.

Example: £8,000 savings → the first £6,000 ignored; £2,000/250 = 8; 8 × £4.35 = £34.80 tariff income, which reduces UC £‑for‑£.

Sources: Shelter Legal – UC capital rules; Revenuebenefits – capital guidance.

Deductions that reduce your payment: advances, overpayments, third‑party debts and sanctions

From 30 April 2025, most UC deductions are capped at 15% of the standard allowance (down from 25%). Priority ‘last‑resort’ deductions for things like rent arrears, service charges or energy arrears can go beyond the 15% cap. Sanctions reduce the standard allowance by a daily rate depending on your circumstances.

• What can be deducted? Advance repayments, overpayments, tax credit debts, civil penalties, and some third‑party debts (for example arrears).
• Order of priority: updated in 2025 for consistency across DWP systems.
• Sanctions: a daily reduction that depends on age/household and the level of requirement. Check the current daily rates before budgeting.

References: DWP press release on the 15% cap (gov.uk); LA Welfare Direct 5/2025 (priority order); Deductions statistics; sanctions guidance and daily rates.

Non‑dependants: the housing cost contribution in 2025/26

If an adult friend or relative lives with you, UC usually takes a flat £93.02 per month off your housing element for each non‑dependant. There are important exemptions (for example, under‑21s in full‑time education, or people receiving certain disability benefits).

Sources: Shelter professional guidance on non‑dependant deductions and public advice on housing cost contributions.

Childcare costs element in 2025/26

UC can reimburse up to 85% of eligible childcare up to monthly caps of £1,031.88 (one child) or £1,768.94 (two or more children). Costs are normally paid upfront and reclaimed via your UC statement. If you are starting work or increasing hours, speak to your work coach about help with upfront costs.

Source: GOV.UK – UC childcare costs.

The Benefit Cap in 2025/26 (and who’s exempt)

• Outside London: £1,835 for families/couples; £1,229.42 for single adults without children.
• In London: £2,110.25 for families/couples; £1,413.92 for single adults without children.

Common exemptions include earning above the threshold, receiving LCWRA, or getting certain disability benefits. A 9‑month grace period may apply if you recently left work and had earnings at or above the threshold (from 7 April 2025 the monthly threshold increased to £846).

Sources: Shelter – Benefit Cap rates; nidirect – grace‑period rules.

What’s confirmed for April 2026 (plan ahead)

For new health‑related UC claims from 6 April 2026, the LCWRA element will usually be £217.26 per month for new awards made on or after that date. Existing LCWRA awards at £423.27 are protected. If you may qualify, consider getting advice and checking guidance ahead of April 2026.

Sources: Citizens Advice – 2026 change; Universal Credit Act 2025.

Quick worked examples using 2025/26 rates

1. Single, 25+, £1,200 earnings, no housing element
   Standard allowance £400.14. Work allowance (no housing costs) £684 → earnings above allowance £516. Taper deduction 55% × £516 = £283.80. Ignoring any other deductions/caps, indicative UC = £116.34.
2. Couple 25+ with two children (one born before 6 Apr 2017), private rent, one non‑dependant
   Standard allowance £628.10 + child elements £339.00 + £292.81 = £1,259.91 before housing. Housing element then reduced by £93.02 for the non‑dependant. If net earnings lead to a £350 taper deduction this month, UC reduces by that amount as well. Your actual housing entitlement depends on your rent and Local Housing Allowance.
3. Lone parent under 25 with one disabled child (higher rate) and £500 earnings, with housing element
   Standard allowance £316.98 + child element £292.81 + disabled child addition £495.87 = £1,105.66 before housing. Work allowance (with housing costs) £411 → earnings above allowance £89 → 55% taper = £48.95 deduction. Other factors (benefit cap, deductions) may apply.

Sources: DWP Benefit and Pension Rates 2025/26 and GOV.UK wages/taper page.

FAQs: 2025/26 Universal Credit rates and deductions

When do 2025/26 rates apply? For assessment periods starting on or after 7 April 2025.

Can I work and still get UC? Yes. If you have a work allowance, UC reduces by 55p per £1 above that allowance; if you don’t, the 55% taper applies from the first £1.

Do savings affect UC? Under £6,000 is ignored; £6,000–£16,000 creates tariff income of £4.35 per £250 (or part) each month; £16,000+ usually means no UC.

How long until my first payment? Around five weeks. If you need money sooner, you can request an advance, repaid from future UC. From 30 April 2025 most deductions are capped at 15% of the standard allowance.

Are payment frequencies different in Scotland/NI? NI commonly pays twice monthly. Rates in this guide apply UK‑wide.

See: GOV.UK – What you’ll get and Citizens Advice – Check how much you’ll get.

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