How much can I earn before Universal Credit is reduced and do I get a work allowance?

HOUSEHOLDS can get £1,000s in extra help via Universal Credit - but you might have your entitlement reduced if you're in work.

Millions receive the benefit which is usually paid monthly and designed to help with living costs.

But because it is also designed to encourage people back into work, the amount you receive is reduced depending on your earnings.

Meanwhile, some people, depending on their circumstances, are allowed to earn a certain amount before their Universal Credit is reduced.

Here's everything you need to know:

Can I work while claiming Universal Credit?

You can work when claiming Universal Credit but payments are designed to decrease the more you earn.

For every £1 you earn your Universal Credit payments reduce by 55p - this is known as the taper rate.

However, some people are eligible for what's known as a "work allowance" - where deductions aren't made until you earn over a certain amount.

You get a work allowance if you (or your partner) are responsible for a child or have limited capability for work.

The allowance is lower if you also get help with housing costs.

The monthly work allowances are:

How much you earn and whether you'll be entitled to Universal Credit payments will depend on your circumstances.

The total amount of benefits you can receive is capped at £25,323 a year for couples and single parents living in Greater London.

Meanwhile, it's £22,020 a year for those under the same circumstances but living outside Greater London.

Single adults in Greater London can receive up to £16,967 a year and £14,753 outside Greater London.

There is no limit to how many hours you can work.

Universal Credit payments are calculated on how much you earn - not your hours of work.

You can use a benefits calculator to see how taking on extra hours might affect your payments though.

The way you're paid can also affect your Universal Credit payments.

They are based on how much you earn in each monthly "assessment period".

If you're paid more than once in an assessment period then this can reduce your benefit payment.

For instance, if you get paid every four weeks rather than monthly, you may have one month where two salaries fall in one assessment period.