What is universal credit?
Universal Credit is the UK's main means-tested benefit for working-age people on low incomes or out of work. It is paid monthly and combines support for living costs, housing, children, childcare and disability. It replaced six older benefits, including Jobseeker's Allowance and tax credits, and adjusts automatically as earnings change.
Every claim starts with a standard allowance. For 2026/27 this is £424.90 a month for a single person aged 25 or over. A couple where at least one is 25 or over gets £666.97. Extra elements are added for children, rent, caring and serious health conditions. Payments are reduced by 55p for every £1 earned above any work allowance. Payments are usually made once a month.
In May 2026 a record 8.4 million people were on Universal Credit. About 38% of them were in work, which surprises many people. From April 2026 the two-child limit was removed, so families can again receive the child element for third and later children. At the same time, the health element for new claimants was cut to £217.26 a month, roughly half the rate existing claimants keep.
The benefit is run by the Department for Work and Pensions. Claimants agree a set of commitments with a work coach, such as job searching. Payments can be cut through sanctions if they do not follow them. Critics point to the five-week wait for a first payment. Supporters say a single benefit makes work pay more clearly than the old system did.
- Pays the state pension
- Runs Universal Credit
- Pays disability benefits such as PIP
- Runs Jobcentres and employment support
- Sets child maintenance and health and safety policy
Budget: About £300bn a year, mostly benefits and pensions. Staff: About 90,000
What it runs or funds
Jobcentre Plus, Child Maintenance Service, Health and Safety Executive, The Pensions Regulator, Money and Pensions Service
Did you know? The state pension is the single biggest benefit, costing well over £100bn a year.
The left argues Universal Credit is too low to live on, that sanctions cause hardship and that the five-week wait pushes people into debt.
The right argues it should strongly reward work, warns about the rising cost of health-related claims and supports firm conditions for claimants.
Britain is split. Now you decide.
In WeDecide you can raise or cut Universal Credit in your Budget and see the effect on poverty, the deficit and your poll ratings.
Play WeDecide freeCommon questions
How much is Universal Credit a month?
The 2026/27 standard allowance is £424.90 for a single person aged 25 or over, plus any extra elements you qualify for.
Can you work and get Universal Credit?
Yes. Payments fall gradually as you earn more, at a rate of 55p for every extra £1.
Has the two-child limit been scrapped?
Yes. It was removed for Universal Credit from April 2026.
What makes the DWP stand out among departments?
It spends more money than any other department. The DWP spends more than any other department, mostly on benefits and pensions.
What is the single biggest benefit?
The state pension. The state pension is the biggest, costing well over £100bn a year.