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. From April 2017, once earnings exceed the work allowance, UC entitlement is reduced by 63% of the excess.


The amount they can earn before UC begins to be cut is £397 a month if the claimants do not require the housing element, and £192 a month if they do. 



Changes to the work allowance rules, already in place, simplified the system by bringing rates in line with the needs of the household as opposed to the claimant, but they are significantly less generous than they were. 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.