Universal Credit Calculator
Estimate your Universal Credit for 2025/26. See how earnings affect your UC with the 55% taper rate, compare childcare support options, and understand your total income from work plus benefits.
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How to Use This Calculator
UC Estimate tab
Enter your age, claim type (single or couple), number of children, monthly rent, and housing type. Toggle whether you are employed and enter your monthly net earnings. The calculator breaks down each UC component — standard allowance, child element, housing element — then applies the 55% taper rate on earnings above your work allowance to show your estimated monthly UC.
Work vs Benefits tab
See how your earnings affect your total income. The calculator compares your UC and total income at your current earnings, at £500 less, and at £500 more per month. It shows the effective marginal rate from the taper: for every extra £1 you earn above your work allowance, your UC reduces by 55p. Use this to understand whether increasing your hours is worthwhile.
Childcare Help tab
Compare two government schemes for childcare costs: the UC childcare element (85% of costs up to a cap) and Tax-Free Childcare (20% government top-up, max £2,000/year per child). Enter your monthly childcare costs and number of children to see which option saves you more money. You cannot use both at the same time.
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The Formula
Universal Credit is calculated by adding up your maximum entitlement, then reducing it based on earnings:
Income Deduction = (Net Earnings − Work Allowance) × 55%
(Only earnings above the work allowance are tapered)
Estimated UC = Maximum UC − Income Deduction − Tariff Income
Work Allowance = £404/mo (with housing element) or £673/mo (without)
Tariff Income = £4.35 for every £250 of savings above £6,000
The taper rate of 55% means that for every £1 you earn above your work allowance, your UC reduces by 55p. This is not a tax — it is a gradual withdrawal of benefit. You always take home at least 45p of every extra £1 earned (before tax and NI).
The work allowance only applies if you have dependent children or have limited capability for work. If neither applies and you have earnings, the taper applies from the first pound.
Example
Sarah — Single parent, 1 child, earning £1,200/month, rent £800/month (private)
Sarah is 32, a single parent with one child, renting privately at £800/month. She works part-time and takes home £1,200/month after tax and NI.
Step 1: Maximum UC
Step 2: Income deduction
Step 3: Estimated UC
Sarah receives an estimated £1,095.67/month in Universal Credit on top of her £1,200 earnings, giving her a total monthly income of £2,295.67. If she earns an extra £100, her UC would reduce by £55, so her total income would rise by £45 (before tax/NI).