UK Universal Credit Calculator 2024-25

What are the Universal Credit standard allowances for 2024/25?

The monthly UC standard allowances in 2024/25 are: Single claimant under 25: £311.68; Single claimant aged 25 or over: £393.45; Joint claimants both under 25: £489.23; Joint claimants one or both aged 25 or over: £617.60. These are the base amounts before any additional elements are added for children, housing, disability, or other circumstances. UC is paid monthly in arrears, with a five-week wait for the first payment (though a repayable advance can be requested). The standard allowance is reviewed each April — it typically increases in line with September's CPI inflation figure.

How does the UC taper rate work?

The Universal Credit taper rate determines how much your UC reduces as your earnings increase. From April 2022, the taper rate is 55p — meaning for every £1 you earn above the work allowance, your UC reduces by 55p. Before the taper is applied, the work allowance is deducted from your earnings. The work allowance is a fixed amount of earnings that does not reduce your UC at all. In 2024/25 the higher work allowance (if you do not have housing costs included) is £673/month, and the lower work allowance (if you do have housing costs) is £404/month. The work allowance only applies to you if you have children or a disability/health condition. Without a work allowance, every pound of net earnings reduces your UC by 55p from the first pound.

What is the two-child limit for Universal Credit?

Since April 2017, new Universal Credit claims can only include the child element for up to two children. A third or subsequent child born on or after 6 April 2017 will not attract the child element (£315/month in 2024/25) unless an exception applies. Exceptions include multiple births, adopted children, children who were conceived as a result of rape (the "non-consensual conception" exception, which requires a statement from a professional), and children taken on as part of a non-parental caring arrangement. Families who were already claiming UC or Child Tax Credit for more than two children before April 2017 are protected and continue to receive the element for all children. This policy — often referred to as the "two-child limit" — has been the subject of considerable political debate and legal challenge.

Does having savings affect Universal Credit eligibility?

Yes, capital (savings and assets) affects UC eligibility. If you have savings or capital above £16,000, you are not eligible for Universal Credit at all. For savings between £6,000 and £16,000, a "tariff income" is assumed — £4.35 per month for each £250 (or part of £250) above £6,000. This assumed income is deducted from your UC award even if you do not actually receive any income from those savings. Savings below £6,000 are completely disregarded. Capital includes current account balances above what is needed for day-to-day living, savings accounts, investments, and property you do not live in (your main home is excluded). This capital rule means that those who have saved during employment may find they are ineligible for UC until their savings fall below the threshold.