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Universal Credit is a single monthly payment for people who are on a low income, out of work or cannot work. It is usually paid once a month, in arrears, direct to the claimant鈥檚 account.

Universal Credit does not limit the number of hours a claimant can work

A claimant鈥檚 earnings are used to calculate their Universal Credit. So the number of hours a claimant can work and get Universal Credit is not limited.

For example, claimants can:

• work more than 16 hours a week
• increase their contracted hours
• get bonus payments
• get overtime
• have more than one job
• be on any type of employment contract

How earnings affect Universal Credit payments

When a claimant is employed, their Universal Credit payment reduces as they earn.

For every 拢1 they earn, their Universal Credit payment goes down by only 55p. If the claimant earns enough to reduce their Universal Credit payment to 拢0, their payments stop. We tell the claimant when this happens.

Some claimants, depending on their circumstances, are eligible for a 鈥�work allowance鈥�. This is an amount that they can earn before their Universal Credit payment is reduced.

If the claimant earns a different amount each month, their Universal Credit will automatically adjust to reflect the amount they earn in that time:

• if someone鈥檚 earnings reduce in a month then their Universal Credit will usually increase
• if their earnings increase, their Universal Credit will usually reduce

Find out more about how earnings affect Universal Credit.

To claim Universal Credit, claimants may be asked to look for ways to increase their earnings. This could be by:

• taking on more work
• progressing in their current workplace
• searching for additional or alternative work with a different employer

For some claimants, this could mean they need to attend jobcentre appointments.

Employers: your responsibilities

Employers do not need to know if their employees are on Universal Credit, but claimants can tell their employer if they wish.

You do not need to tell DWP about any employees who are getting Universal Credit.

If you are a PAYE (Pay As You Earn) employer, you must:

• give the claimant鈥檚 PAYE information (their 鈥楩ull Payment Submission鈥� (FPS)) to HMRC on or before the day they鈥檙e due to be paid
• enter the usual date that you pay your employees on your FPS, even if you pay them聽on a different date because their normal date falls a non-banking day,聽for example a weekend or a聽bank holiday

Incorrect or late information could mean claimants will not receive the Universal Credit they are expecting.

DWP will then get the claimant鈥檚 work status and automatically work out what Universal Credit they鈥檙e entitled to based on the information you鈥檝e already given to HMRC.

If you are not a PAYE employer, it is the claimant鈥檚 responsibility to report their pay to Universal Credit each month.

Other support

Jobcentre Plus has recruitment services that can help employers to recruit, train, develop and keep their workforce. Find out about Jobcentre Plus help for recruiters.

If a claimant has a query they can:

• find out more about Universal Credit
• contact Universal Credit

Videos

You can also watch short videos that include the guidance on this page.

At the end of each video it shows you how to find the 鈥楿niversal Credit: information for employers鈥� page you are viewing now.