With the news that the minimum wage is increasing, many claimants first thought is that a higher wage means less Universal Credit.
The work allowance is the amount that you can earn before deductions for take home pay start. The rates are currently £287 and £503.
Along with other Universal Credit rates increases, the new lower work allowance will be £292 and the higher work allowance will be £512. For every £1 earned over this, your Universal Credit will be reduced by 63p.
To calculate your deduction for take home pay -
Total earnings paid during assessment period minus work allowance
and then multiply by 0.63