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UK Benefits Complete Guide

Everything you need to understand UK benefits - from Universal Credit and PIP to Child Benefit and how working affects your entitlement. Updated for 2025/26.

Key UK Benefits

Universal Credit Elements 2025/26

UC is made up of different elements depending on your circumstances. Your total UC is calculated by adding relevant elements, then reducing based on any earnings or other income.

ElementAmount
Standard Allowance (single, 25+)£393.45/month
Standard Allowance (couple, both 25+)£617.60/month
Child Element (first child)£333.33/month
Child Element (second+ child)£287.92/month
Housing ElementUp to full rent (LHA)
Childcare ElementUp to 85% of costs
Limited Capability for Work£416.19/month
Carer Element£198.31/month

Working While on Benefits

The UC Taper

When you earn money, your UC is reduced by 55p for every £1 earned over your work allowance. This means you always keep at least 45p of every pound you earn.

Work Allowance (with housing): £404/month
Earn this before taper starts
Work Allowance (no housing): £673/month
Higher if UC doesn't include housing
No work allowance if single, no children
Taper starts from first pound earned

Example Calculation

Your earnings£800/month
Work allowance- £404
Earnings above allowance= £396
Taper (55%)× 55%
UC reduction£217.80
Calculate your benefits vs work →

Personal Independence Payment (PIP)

PIP helps with extra costs if you have a long-term physical or mental health condition or disability. Unlike UC, PIP is not means-tested - you can receive it regardless of income or savings.

Daily Living Component

Standard rate£77.00/week
Enhanced rate£115.05/week

Mobility Component

Standard rate£30.65/week
Enhanced rate£80.50/week

Key point: PIP continues when you work and doesn't affect other benefits negatively. In fact, receiving PIP can increase your UC and exempt you from the benefit cap.

Related Calculators

Related Glossary Terms

Frequently Asked Questions

Calculate Your Entitlement

Use our calculators to understand your potential benefit entitlement and how working affects your income.