# How does the Universal Credit taper work?

> Quick answer · Last updated 4 July 2026

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## In short

For every £1 of net earnings above your work allowance, Universal Credit is reduced by 55p (the taper rate). Without a work allowance, the reduction starts from the first pound of earnings.

Work allowance applies if you have children or limited capability for work — it lets you earn a set amount before taper begins. The allowance is lower if housing costs are included in your award.

Self-employed claimants may face minimum income floor rules after 12 months.

Use our benefits estimator and Universal Credit explained guide for your situation.

## Related

- [Universal Credit explained](https://moneyguide.org.uk/benefits-tax/universal-credit-explained/)
- [UC work allowance](https://moneyguide.org.uk/answers/what-is-universal-credit-work-allowance/)
- [UC earnings limit](https://moneyguide.org.uk/answers/what-is-universal-credit-earnings-limit/)

## Primary source

gov.uk/universal-credit

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.