LRD guides and handbook April 2018

State benefits and tax credits 2018

Chapter 1

Universal Credit payments


[ch 1: pages 13-14]

UC is usually paid monthly (except in full service areas in Scotland, where there is an option to be paid twice a month) into a bank, building society or credit union account. Payments are made up of a standard allowance and extra amounts for people with children, those who have a disability or health condition, and those who need help paying their rent. Claimants’ circumstances are assessed every month and payments may change.


The allowances under UC are as follows:


Standard allowance


Monthly allowance
Single and under 25 £251.77

Single and 25 or over £317.82

In a couple both under 25 £395.20 (per couple)

In a couple and one is 25 or over £498.89 (per couple)


Allowances for those with children


For the first child £277.08 (born before 6 April 2017)
For the second/subsequent child £231.67 (born on or after 6 April 2017)

For a disabled or severely disabled child £126.11 Lower rate
For a disabled or severely disabled child £383.86 Higher rate
Childcare costs up to 85% of the costs (up to £646.35 for one child and £1,108.04 for two or more children)

You only get an extra amount for more than two children if you were already claiming for more than two children before 6 April 2017; you are renewing a claim for more than two children that stopped within the past six months; or other exceptions apply. You might get the extra amount if you start caring for another child, depending on when they were born and how many children you have.


Allowances for those who have a disability or health condition or care for an adult who does


Extra monthly amount
If you have limited capability for work and work-related activity £328.32
If you have limited capability for work and you started your Universal Credit or Employment and Support Allowance (ESA) claim before 3 April 2017 £126.11
If you care for a disabled person £156.45


Allowances for housing costs


How much you get depends on your age and circumstances and the payment can cover rent and some service charges. 


How your earnings affect what you get


If you are employed, for every £1 you earn your payment reduces by 63p. There is no limit to how many hours you can work. There are different rules for people who are self-employed (see below).


The work allowance


You can earn a certain amount before your UC is reduced if you or your partner are either responsible for a child or young person or have a disability or health condition that affects your ability to work. This is called a “work allowance”. It is lower if you get help with housing costs:


Monthly work allowance
You get help with housing costs £192

You do not get help with housing costs £397