What if I am working or studying?

Work

You can still claim Universal Credit (UC) if you work, but how much you earn may reduce the amount of UC you get.

You may pay tax using Pay As You Earn (PAYE); in this case, Her Majesty’s Revenue and Customs (HMRC) will tell the Social Security Agency (SSA) how much you earn.

If you are self-employed, you must tell the DWP how much you earn every month. You may earn different amounts every week or month and in which case, the DWP will assess your income by saying you will earn at least a certain amount every month.

This is called the minimum income floor. This is calculated at national minimum wage, based on a 35-hour week, with an amount taken away for tax and National Insurance.

If you are setting up a new business, the DWP will use your actual earnings in the first 12 months to help you increase your income.

Studying

You cannot usually claim UC if you are a full-time student studying for:

• A degree,
• A postgraduate degree,
• A diploma of higher education,
• A higher national diploma, and
• Any other qualification that is above advanced GNVQ or A level standard.

You can claim UC when studying if:

• You have a child, or
• You get Disability Living Allowance  or Personal Independence Payment  at any rate for any component, and
• Have limited capability for work.

If you are studying part-time and meet the conditions that are set out in your claimant commitment, you can claim UC.