Universal Credit rates for 2027/28 will be confirmed in autumn 2026. Current reference rates and how UC is calculated below.
Last reviewed: May 2026. 2027/28 UC rates will be confirmed in the autumn 2026 Budget/uprating announcement and apply from April 2027. This page will be updated when confirmed.
Universal Credit Standard Allowances — Reference 2025/26
| Claimant | Monthly (2025/26) | Annual |
|---|---|---|
| Single, under 25 | £311.68 | £3,740 |
| Single, 25 or over | £400.14 | £4,802 |
| Couple, both under 25 | £489.23 | £5,871 |
| Couple, one or both 25+ | £628.10 | £7,537 |
2027/28 rates to be confirmed autumn 2026.
Universal Credit Elements — Reference 2025/26
| Element | Monthly (2025/26) |
|---|---|
| First child (born before April 2017) | £339.00 |
| First/second child (born after April 2017) | £292.81 |
| Disabled child (lower) | £156.11 |
| Disabled child (higher) | £487.58 |
| Limited capability for work (LCW) | £156.11 |
| Limited capability for work and work-related activity (LCWRA) | £416.19 |
| Carer element | £198.31 |
Work Allowances — Reference 2025/26
| Higher (no housing costs) | Lower (with housing element) | |
|---|---|---|
| Work allowance | £673/month | £404/month |
| UC taper (above work allowance) | 55p per £1 earned | 55p per £1 earned |
If you have no work allowance (no children, no LCWRA), all earnings reduce UC at 55p/£1 from £0.
How UC Taper Works — Example
Single claimant, 25+, employed, no children, no housing costs (2025/26 rates):
| UC standard allowance | £400.14/month |
| Work allowance | None (no children, no LCWRA) |
| Earnings | £800/month |
| UC reduction (55% × £800) | −£440 |
| UC payable | £0 (reduced to nil) |
| UC nil earnings point: | ~£728/month |
With children (higher work allowance £673/month):
| Maximum UC standard + child element | £400.14 + £292.81 = £692.95 |
| Work allowance | £673/month |
| Earnings | £1,200/month |
| UC reduction (55% × (£1,200 − £673)) = 55% × £527 | −£289.85 |
| UC payable | £403.10 |
Benefit Cap — 2027/28
The benefit cap limits the total benefits a household can receive (other than UC disability elements). The cap is currently:
| Household | Outside London | London |
|---|---|---|
| Couples / lone parents | £23,000/year | £26,948/year |
| Single, no children | £15,410/year | £17,803/year |
Benefit cap figures are uprated periodically — 2027/28 figures TBC.
Savings and Capital Rules
Universal Credit applies a capital tariff to savings:
| Savings | Impact on UC |
|---|---|
| Under £6,000 | No impact |
| £6,000–£16,000 | Assumed income of £4.35/month per £250 above £6,000 |
| Over £16,000 | Not eligible for UC |
Example: If you have £10,000 in savings, the tariff income = (£10,000 − £6,000) / £250 × £4.35 = £69.60/month assumed income, which reduces your UC by £69.60/month.
Capital includes savings accounts, ISAs, stocks and shares, and property (other than your main home). Property you own is counted at its estimated market value minus any mortgage or secured loan.
Self-Employment and the Minimum Income Floor
If you are self-employed and on Universal Credit, the Minimum Income Floor (MIF) may apply after a 12-month grace period:
- The MIF assumes you earn the equivalent of the National Living Wage for your expected working hours, regardless of your actual earnings
- If your actual self-employment profit is below the MIF, UC is calculated as if you earned the MIF amount
- The MIF does not apply during your first 12 months of self-employment, or if you have a good reason for lower earnings (e.g. illness)
Example (2025/26): Single claimant, expected 35-hour week. MIF ≈ 35 hrs × £12.21/hr × 52 ÷ 12 = ~£1,849/month assumed earnings, even if actual profit is lower.
Migration from Legacy Benefits
DWP’s managed migration programme is transitioning claimants from legacy benefits (Housing Benefit, Tax Credits, Income Support, income-related ESA/JSA) to Universal Credit. If you receive a migration notice:
- You have 3 months to claim UC (date shown on your letter)
- If your existing entitlements are higher than UC, you receive transitional protection — an extra element added to UC to make up the difference
- Transitional protection erodes over time if your circumstances change