Better off in work calculator
Taking on more hours usually leaves a household with more money, even though Universal Credit falls by 55.00000000000001p for every extra £1 of net earnings, per gov.uk. This tool nets off tax, National Insurance and the taper to estimate the real change in monthly income. The Department for Work and Pensions decides an actual award, so this remains an estimate.
Will I actually be better off taking more hours?
Two things happen when earnings rise.
Above the personal allowance, income tax and National Insurance are due on the extra pay.
Universal Credit also tapers: for every £1 of net earnings above the work allowance, the award drops by 55.00000000000001p, according to gov.uk.
The two effects stack, which is why the gain feels smaller than the pay rise, but total income is almost always higher overall.
How much do I keep from the next £100 I earn?
Below the tax threshold, an estimated £45 of the next £100 is kept, because only the taper applies.
Once income tax and National Insurance start, that estimated figure falls to around £32.
That remains money gained, so on the taper alone, additional earnings still increase total income.
The separate risk is a cliff edge, where a passported benefit stops all at once rather than tapering.
Free school meals no longer work that way in England, because from the 2026/27 school year every household on Universal Credit qualifies whatever it earns, per gov.uk.
Healthy Start still works that way, so this tool flags the £408 a month take-home line for anyone pregnant or with a child under four.
What does the worked example show?
Going from £800 to £1400 a month gross, with a work allowance and housing help, take-home pay rises but Universal Credit tapers away part of it.
The estimated net result is about £282 more a month in total income.
Of the next £100 earned from this point, an estimated £72 is kept.
Total income is estimated to be higher, but by less than the headline pay rise suggests.
Common questions
Will I actually be better off taking more hours?
Usually yes, because Universal Credit tapers rather than stops. For every £1 of net earnings above your work allowance you lose 55p of UC, so you still keep something from each extra pound. This tool shows the net gain once tax, National Insurance and the taper are all counted.
What is the work allowance?
It is the amount you can earn each month before the Universal Credit taper starts. For 2026/27 it is £710 a month if your award has no housing element, or £427 a month if it does. You only get a work allowance if you have children or limited capability for work.
How much do I keep from the next £100 I earn?
It depends where you sit. Below the tax threshold you keep about £45 of the next £100 after the 55% taper. Once income tax and National Insurance also apply, you keep closer to £32. The result box shows your figure for the after level you entered.
What is a cliff edge?
A cliff edge is where a small rise in earnings loses you a whole benefit at once rather than gradually. The Universal Credit taper has no cliff edge. Free school meals no longer have one in England either: from the 2026/27 school year every household on Universal Credit qualifies regardless of income. Healthy Start still does, since it stops once take-home pay from work is above £408 a month, so the tool flags that line for anyone pregnant or with a child under 4. Some council schemes also have their own income limits.
Does this include help with childcare?
Not directly. Universal Credit can refund up to 85% of childcare costs, which changes the picture considerably for working parents. Treat this tool as the wage and taper core, then add childcare support separately using the Tax-Free Childcare and UC childcare rules.
What does the worked example show?
Going from £800 to £1400 a month gross, with a work allowance and housing help, the estimated net gain is about £282 more a month once tax, National Insurance and the Universal Credit taper are counted. Of the next £100 earned from that point, an estimated £72 is kept. Total income is estimated to be higher, but by less than the headline pay rise suggests. Only the Department for Work and Pensions can confirm an actual award.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.