Universal Credit Guide 2026/27

Standard Allowance Rates 2026/27

Universal Credit standard allowance (the basic amount before additions): single, under 25: £311.68/month. Single, 25 or over: £393.45/month. Couple, both under 25: £489.23/month. Couple, one or both 25+: £617.60/month. These figures increased by approximately 6.7% in April 2024 in line with inflation. Additional elements added depending on circumstances: child element, housing costs element, limited capability for work element, carer element, childcare costs element. Universal Credit is paid mon

Child and Disability Elements

First child element: £333.33/month if born before 6 April 2017. £287.92/month for first child born after this date. Additional children: £287.92/month per child (limit of 2 children for new claims since April 2017 — the 'two-child limit'). Disabled child addition: £156.11/month or £487.58/month depending on level of disability. Limited capability for work (LCW): £156.11/month — for those assessed as having limited ability to work due to health. Limited capability for work and work-related activi

Work Allowance and Taper

Work allowance: the amount you can earn before UC starts reducing. Higher rate (£673/month — 2026/27): if you receive housing costs element. Lower rate (£404/month): if not. Standard rate (£0): if no children and no health condition affecting work. Earnings taper: UC reduces by 55p for every £1 earned above the work allowance. Example: single parent earning £1,200/month with housing element. Earnings above work allowance: £1,200 − £673 = £527. UC reduction: £527 × 0.55 = £290. UC paid: standard

Childcare Costs Element

Universal Credit covers up to 85% of eligible childcare costs. Maximum (2026/27): £1,014.63/month for 1 child. £1,739.37/month for 2+ children. Significant increases from 2023 levels — childcare cost support was raised to encourage parents to return to work. Eligibility: both parents (or single parent) must be working, OR have a job offer. Childcare must be registered (Ofsted in England, equivalent elsewhere). Pay childcare first, claim back through UC: this can create cash flow problems for low

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

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