How Much Will My Payment Be?
|
Universal Credit is calculated differently to the benefits you may be familiar with. This means that some people are worse off and some people are better off on Universal Credit. As a means-tested benefit it takes into account the claimant's assessed income and capital - just like the benefits it replaces did as well.
This is the basic formula used by Universal Credit and our admin team use it every time a calculation is carried out. |
Updated to reflect new rates
Working out your entitlement manually can look overwhelming at first, but it's the most accurate way of calculating your award. Sit down with a cup of tea and grab a pen and paper, most of this is just writing down figures and then at the end we need to do some simple sums using a calculator (your phone might have one or use an online calculator by pressing here).
This might seem like a lot of work but you will know it is accurate and you will learn a lot about how UC actually works, making it easier for you to spot any errors in your claim.
This might seem like a lot of work but you will know it is accurate and you will learn a lot about how UC actually works, making it easier for you to spot any errors in your claim.
Full Entitlement MINUS Deductions for Income and Debt
= Universal Credit Payment
Entitlement is always assessed over a period of one month. This is called an 'assessment period' or AP. Any income received during an assessment period is counted when calculating that month's payment. Everyone's assessment period dates are dependent on when they made the claim, so while one persons would be 10th of one month to the 9th of the next, someone else's may be 28th of one month to the 27th of the following. Assessment period dates never (usually) change.
We urge everyone to be very careful over which date they claim! If you are paid monthly from work and end up with an assessment period that is very close to that, you could end up with frequently having 2 wages counted in one assessment period.
We urge everyone to be very careful over which date they claim! If you are paid monthly from work and end up with an assessment period that is very close to that, you could end up with frequently having 2 wages counted in one assessment period.
Step 1 - Work out your maximum Universal Credit amount
Step 2 - Work out deduction for earned income (jump to section)
Step 3 - Work out deduction other income (jump to section)
Step 4 - Work out payment amount (jump to section)
Step 5 - Is the benefit cap applied? (jump to section)
Step 2 - Work out deduction for earned income (jump to section)
Step 3 - Work out deduction other income (jump to section)
Step 4 - Work out payment amount (jump to section)
Step 5 - Is the benefit cap applied? (jump to section)
Step 1 - Work out your maximum Universal Credit amount
Every award is made up of your standard allowance and then any other elements that apply to your household. This total would be your Universal Credit payment amount if you had no deductions.
All calculations begin with establishing which standard allowance rate plus any additional 'elements' that you are entitled to.
All calculations begin with establishing which standard allowance rate plus any additional 'elements' that you are entitled to.
Is it single or joint claim? Are you (or your partner) aged 25 or over?
- Single, under 25 - £342.72
- Single, aged 25 or over - £409.89
- Couple, both under 25 - £488.59
- Couple, one or both aged 25 or over - £594.04
|
|
Write down the standard allowance rate which applies to you
(Every claim has an amount for standard allowance included in their claim) |
How many children are you responsible for? Are they born before 6th April 2017?
If you are not responsible for any children ❖ click to move on to next section.
If you are not responsible for any children ❖ click to move on to next section.
- If you eldest child was born BEFORE 6th April 2017, you will include in your entitlement the higher rate of £281.25
- If your eldest child is born after the 6th April 2017, you will include in your entitlement the lower rate of £235.83
- For every other child born before 6th April 2017, you will include in your entitlement the lower rate of £235.83
- An amount of £235.83 can only be included for a child born 6th April 2017 or after, if they are a first or second child, or an exception to the 2 child rule
- If you have more 2 children or more and have another child after 5th April 2017, then an additional amount cannot be included for this child, unless an exemption applies.
Please note, the 2 child cap does not apply to ANY children born before 6th April 2017.
1For example -
If you have 2 children aged 8 and 5, then you would write down £281.25 plus £235.83.
If you have 4 children aged 14, 8, 5 and 6 months you would write down £281.25, £235.83 and £235.83. An amount would not be included for baby born after 6 April 2017, due to the 2 child cap rule from that date.
If you have 2 children aged 8 and 5, then you would write down £281.25 plus £235.83.
If you have 4 children aged 14, 8, 5 and 6 months you would write down £281.25, £235.83 and £235.83. An amount would not be included for baby born after 6 April 2017, due to the 2 child cap rule from that date.
|
|
Write down the relevant child elements that apply to you
|
Do you have childcare that you pay for?
If you do not pay for childcare ❖ click to move on to next section.
To be eligible for childcare element on Universal Credit you need to meet the work condition.
For single claimants this condition is met if the claimant-
For single claimants this condition is met if the claimant-
- is in paid work or,
- has an offer of paid work and due to start that work before the end of the next assessment period or,
- has ceased paid work in that assessment period or the previous assessment period or,
- is in receipt of SSP, SMP, MA, statutory paternity pay or statutory adoption pay.
- both claimants are in paid work or,
- one claimant is in paid work and the other claimant has LCW, carers element or temporarily absent from the claimants household.
The childcare needs to be by a provider that is approved or registered.
Childcare element will be 85% of childcare costs that have been reported and evidenced (if requested) and included in relation to which assessment period the childcare took place.
Read more info on childcare element
- Maximum of £646.45 for one child
- Maximum of £1108.04 of two children or more
Read more info on childcare element
Tip - To work out what 85% is multiply the amount paid by 0.85. Example £500 x 0.85 = £425
|
|
Write down the childcare element that applies to you
|
Do you have eligible housing costs?
On Universal Credit, if you rent and have a valid tenancy then you will have the housing element calculated within your payment.
This applies even if you have never been entitled to housing benefit.
On Universal Credit all calculations start with full entitlement and deductions for income are made after.
This applies even if you have never been entitled to housing benefit.
On Universal Credit all calculations start with full entitlement and deductions for income are made after.
|
|
If you are staying in temporary accommodation, supported housing, emergency or sheltered housing then you may need to claim housing benefit to get help with housing costs. Universal Credit will not award you housing costs.
❖ Click to move on to next section. |
If you have do not have rent costs then Universal Credit cannot help with housing element.
This includes people with living in an owned property or people living with family or friends.
❖ Click to move on to next section.
This includes people with living in an owned property or people living with family or friends.
❖ Click to move on to next section.
When establishing how much help with your housing costs you need to work out the number of bedrooms your household requires. You would be entitled to one bedroom for
❖ Click here to skip to social housing rules.
- You (and your partner if you have one)
- Any child over 16 (qualifying young person) still on your claim
- Any non-dependent who is not a child
- 2 children of either sex, who are under 10
- 2 children of the same sex, under 16
- Any other child
❖ Click here to skip to social housing rules.
Private rented property
You rate will be based on the number of bedrooms that you are entitled to. Please note that if you are under 35 and living alone, and not in receipt of DLA or PIP, then you will only be entitled to the shared accommodation rate.
Your housing costs will be calculated using the Local Housing Allowance (LHA) for your area. You can visit the LHA Direct website (link opens in new window) to find out what your Local Housing Allowance is. Enter your postcode and select the number of bedrooms you are entitled to and press to return the results. You will be given a weekly value.
TIP - To convert this number to a monthly value accurately, you need to take the weekly value and divide by 7 days, then multiply by 365 days and then divide by 12 months. Alternatively you can multiply the weekly rate by 4.345 as a shortcut. There are more 4 weeks in a month.
You rate will be based on the number of bedrooms that you are entitled to. Please note that if you are under 35 and living alone, and not in receipt of DLA or PIP, then you will only be entitled to the shared accommodation rate.
Your housing costs will be calculated using the Local Housing Allowance (LHA) for your area. You can visit the LHA Direct website (link opens in new window) to find out what your Local Housing Allowance is. Enter your postcode and select the number of bedrooms you are entitled to and press to return the results. You will be given a weekly value.
TIP - To convert this number to a monthly value accurately, you need to take the weekly value and divide by 7 days, then multiply by 365 days and then divide by 12 months. Alternatively you can multiply the weekly rate by 4.345 as a shortcut. There are more 4 weeks in a month.
There may be a non-dependent deduction of £75.15 for any other adult who lives in your house, unless an exemption applies. A non dependent is someone who resides with you that is not a dependent child or a partner and is not liable for paying the rent. It is also not someone who collect rent from as a sub-tenant. It is normally a grown up son or daughter or elderly relative.
There will be no contribution expected if one of the following apply to the non dependent-
There will be no contribution expected if one of the following apply to the non dependent-
- under 21
- receiving Pension Credit
- receiving the care component of Disability Living Allowance at the middle or highest rate
- receiving the daily living component of Personal Independence Payment
- receiving Attendance Allowance
- receiving Carer's Allowance
- the primary carer for a child aged 4 or under
|
|
If your liable rent is more than your LHA rate, write down your LHA rate.
If your liable rent is less than your LHA rate, write down your liable rent. ❖ Click to move on to next section. |
Social housing (council or housing association)
Your housing costs element will be based on your eligible rent.
If you have more bedrooms than your household actually needs then a size restriction is applied when calculating your award. This is called "bedroom tax". This means that your total rent may be reduced by 14% for one spare bedroom or 25% for two or more spare bedrooms.
You need to consider if you have any "rent free weeks". Universal Credit will take these into consideration but will calculate your rent on a monthly average basis.
If you have bedroom tax then you will need to make a deduction for that. To apply 14% bedroom tax multiply the total by 0.86. To apply 25% bedroom tax multiple the total by 0.75.
Your housing costs element will be based on your eligible rent.
If you have more bedrooms than your household actually needs then a size restriction is applied when calculating your award. This is called "bedroom tax". This means that your total rent may be reduced by 14% for one spare bedroom or 25% for two or more spare bedrooms.
You need to consider if you have any "rent free weeks". Universal Credit will take these into consideration but will calculate your rent on a monthly average basis.
- If you are charged rent weekly - Multiply your weekly rent by the number of weeks that you pay rent per year and then divide by 12. For example if you have pay £100 per week and have 2 rent free weeks, you would do 100 x 50 and then divide by 12.
If you have bedroom tax then you will need to make a deduction for that. To apply 14% bedroom tax multiply the total by 0.86. To apply 25% bedroom tax multiple the total by 0.75.
There may be a non-dependent deduction of £75.15 for any other adult who lives in your house, unless an exemption applies. A non dependent is someone who resides with you that is not a dependent child or a partner and is not liable for paying the rent. It is also not someone who collect rent from as a sub-tenant. It is normally a grown up son or daughter or elderly relative.
There will be no contribution expected if one of the following apply to the non dependent-
There will be no contribution expected if one of the following apply to the non dependent-
- under 21
- receiving Pension Credit
- receiving the care component of Disability Living Allowance at the middle or highest rate
- receiving the daily living component of Personal Independence Payment
- receiving Attendance Allowance
- receiving Carer's Allowance
- the primary carer for a child aged 4 or under
|
|
Write down your average monthly eligible housing element - remember any rent free weeks and bedroom tax and non-dependent deduction.
|
Is anyone caring, disabled or unfit for work?
Carers Element
This is awarded where the claimant or their partner has ‘regular and substantial caring responsibilities’ for a ‘severely disabled person’. If both you and your partner have a ‘regular and substantial’ caring responsibilities for a ‘severely disabled person’ then two lots of the ‘carer element’ may be included in the award provided they are not caring for the same person.
A person is treated as though they have ‘regular and substantial’ caring responsibilities for a ‘severely disabled person’ if they receive Carer’s Allowance (or an underlying entitlement to Carer’s Allowance) or would be entitled to Carer’s Allowance but for the fact that their earnings are too great or they would be entitled to Carer’s Allowance if they were to make a claim for it because they care for someone (who receives e.g. Attendance Allowance, DLA care component at the middle or higher rate or PIP daily living component) at least 35 hours per week.
Is anyone disabled?
If you or your partner is disabled there are no extra elements awarded, even if you or your partner is in receipt of DLA, PIP or AA. It would mean that you are exempt from the benefit cap or non-dependent deductions.
If you have a dependent child that is in receipt of any rate of DLA then an extra element will be included in your award.
If the child is in receipt of high rate care then the element for higher rate of disabled child will be included, the lower rate will be included for any other rate. Only one rate can be paid per child.
Is anyone unfit to work?
If you or your partner have been assessed by either Universal Credit or ESA as part of a work capability assessment and were awarded, then you may have an extra element included in your award.
If you were in receipt of ESA on or before the date you applied to Universal Credit and it had been determined that you were entitled to the work-related activity or the support component then this will transfer over.
Carers Element
This is awarded where the claimant or their partner has ‘regular and substantial caring responsibilities’ for a ‘severely disabled person’. If both you and your partner have a ‘regular and substantial’ caring responsibilities for a ‘severely disabled person’ then two lots of the ‘carer element’ may be included in the award provided they are not caring for the same person.
A person is treated as though they have ‘regular and substantial’ caring responsibilities for a ‘severely disabled person’ if they receive Carer’s Allowance (or an underlying entitlement to Carer’s Allowance) or would be entitled to Carer’s Allowance but for the fact that their earnings are too great or they would be entitled to Carer’s Allowance if they were to make a claim for it because they care for someone (who receives e.g. Attendance Allowance, DLA care component at the middle or higher rate or PIP daily living component) at least 35 hours per week.
- Carers Element £162.92
Is anyone disabled?
If you or your partner is disabled there are no extra elements awarded, even if you or your partner is in receipt of DLA, PIP or AA. It would mean that you are exempt from the benefit cap or non-dependent deductions.
If you have a dependent child that is in receipt of any rate of DLA then an extra element will be included in your award.
If the child is in receipt of high rate care then the element for higher rate of disabled child will be included, the lower rate will be included for any other rate. Only one rate can be paid per child.
- Higher rate of disabled child £400.29
- Lower rate of disabled child £128.25
Is anyone unfit to work?
If you or your partner have been assessed by either Universal Credit or ESA as part of a work capability assessment and were awarded, then you may have an extra element included in your award.
If you were in receipt of ESA on or before the date you applied to Universal Credit and it had been determined that you were entitled to the work-related activity or the support component then this will transfer over.
- Limited capability to work and work related activity £341.92
- Limited capability to work (only for awards made before 3 April 2017) £128.25
|
|
Please note that the same person cannot have the carers element as well as the LCW or LCWRA element.
On a joint claim, both claimants cannot have LCW/LCWRA in payment. |
|
|
Write down the relevant carers, limited capability to work, disabled child elements that apply to you.
|
You now should have any of the following relevant amounts listed -
● Standard Allowance
● Child Element
● Childcare Element
● Housing Element
● LCW or LCWRA
● Carers Element
● Disabled Child Element
Not everyone will have an amount for each of these.
● Standard Allowance
● Child Element
● Childcare Element
● Housing Element
● LCW or LCWRA
● Carers Element
● Disabled Child Element
Not everyone will have an amount for each of these.
ADD UP ALL YOUR RELEVANT AMOUNTS
This is the amount of your full Universal Credit before any deduction
for take home pay, advances and debt.
This is commonly called your 'Full Entitlement' or 'Total before adjustment'.
All calculations start from this point.
The only situation when this figure would change is if there was a change
in your household or basic situation.
Even with earnings or other income, the calculation always starts with this figure and then a deduction further down.
for take home pay, advances and debt.
This is commonly called your 'Full Entitlement' or 'Total before adjustment'.
All calculations start from this point.
The only situation when this figure would change is if there was a change
in your household or basic situation.
Even with earnings or other income, the calculation always starts with this figure and then a deduction further down.