Households could earn as much as £50,000 and still get Universal Credit (Image: Getty)
It’s often thought of as a DWP benefit only for people on very low or no income, but the catch-all handout that is Universal Credit can actually be worth claiming if you earn as much as £50,000.
That’s because , which as the name suggests is a wide-ranging benefit, is slowly replacing various other benefits from the and as well as providing direct income support, can also help households and individuals claim other benefits and entitlements even if they are not especially low earners. The standard allowance gives income support calculated based on the National Living Wage for your age. The standard amount is £311.68 a month for a single person under 25, £393.45 over 25, and £489.23 for couples under 25 (this is paid jointly as a household benefit) and £617.60 for couples over 25.
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But there are many other additional benefits attached to Universal Credit, such as housing costs for rent, and benefits if you care for children, if you have a disabled child, are a carer or need help with childcare costs.
For example, if you look after a child, you could apply for £33.33 a month if your child was born before April 2016 and £287.92 a month if your child was born after that date.
If your child is severely disabled, you could get another £156.11 to £487.58 per month.
If you’re in work, you could claim up to 85% of your childcare costs – up to £1,739.37 per month for two or more children.
Other possible additions include caring for a disabled person, for £198.31 per month.
It’s complex, and there is no hard limit on earnings because each part of Universal Credit applies to different people in different circumstances. Universal Credit is not available at all to those who have more than £16,000 in savings, regardless of income.
’ MSE explains: “There’s no set amount you can earn before you stop getting Universal Credit. Because Universal Credit is tailored to your circumstances, there’s no hard ‘cut-off’ point for eligibility.
“A single person living with their parents may only be able to earn up to £18,000 before they stop being eligible, whereas a single parent of two children, renting in an expensive city, may be able to earn up to £50,000 before they are no longer eligible. Claiming Universal Credit also opens up access to other forms of support, including increased free childcare hours, and reduced tariffs for certain utilities”
You can check online via gov.uk’s benefits calculator to get a tailored calculation based on your circumstances which will tell you if it’s worth claiming – .
It’s worth checking first because Universal Credit can affect your eligibility for other benefits.
Gov.uk says: “If you already get benefits or tax credits, you should work out if you’ll be better off before you or your partner claim Universal Credit.
“If you apply for Universal Credit those benefits might end and you will not be able to apply for them again, even if your application is not approved.”