Work allowances

A work allowance is an amount of money that a person (or their partner) who is responsible for children, or who has a disability or health condition that affects their ability to work, can earn before their benefit starts to be reduced. Once earnings exceed the work allowance, UC entitlement is reduced by 63% of the excess (the taper rate – see above).

The amount they can earn before UC begins to be cut rose from April 2019 and is now £503 (increased from £409) a month if the claimants do not require help with housing costs (the housing element), and £287 (increased from £198) a month if they do.

Before April 2016, a single claimant with one or more dependent children and no housing benefit was able to earn £734 a month before their entitlement was reduced. For joint claimants with children, the total was £536.

Workers without children and those who have not been assessed (or their partner has not been assessed) as having limited capability for work do not qualify for work allowances.