Published On: Tue, Jan 28th, 2020

Universal Credit: Why your payment could be reduced or stopped | Personal Finance | Finance

is usually made monthly, and it is replacing a number of following benefits. These are: Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), and Working Tax Credit.

Universal Credit payments are made up of a standard allowance and any extra amounts which may apply to the claimant.

Examples of this may be is if they have children, need help paying their rent, or have a disability or health condition which prevents them from working.

It’s possible to use an independent benefits calculator in order to see how much a person could get.

Factors such as earnings can affect the payment amount, and the benefit cap may limit the total amount of benefit that a person receives.


Circumstances are assessed each and every month.

Should a person have changes in their circumstances, these can affect how much the person is paid for the entirety of the assessment period – not just from the date that they’re reported.

Universal Credit: How earnings affect payments

If a person is employed, how much they get will depend on their earnings.


It will reduce gradually as a person earns more – for every £1 they earn, the payment will reduce by 63 pence.

There’s no limit as to how many hours a person can work.

Some people can earn a certain amount before their Universal Credit is reduced, and this is known as the work allowance.

This is if a person or their partner are either responsible for a child or young person, or living with a disability or health condition that affects their ability work. details that changes can include:

  • Finding or finishing a job
  • Having a child
  • Moving in with a partner
  • Starting to care for a child or disabled person
  • Moving to a new address
  • Changing bank details
  • A person’s rent going up or down
  • Changes to a health condition
  • Becoming too ill to work or meet the work coach
  • Changes to one’s earnings (only if one’s self-employed)

A person can report a change of circumstances by signing in to their Universal Credit account.

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