UK households claiming Universal Credit have been issued an earnings warning by the Department for Work and Pensions (DWP) that could see payments reduced or stopped entirely.
Universal Credit is a monthly payment to help people with essential living costs and is given to those on a low income. You may be eligible for the benefit if you're working, if you're out of work, or if you're unable to work, depending on your earnings.
You must live in the UK, be aged 18 or over, be under State Pension age and have £16,000 or less in money, savings and investments.
If you meet the qualifying criteria, you'll get a monthly payment from the DWP to help cover your living costs, but the amount you get is dependent on certain factors, including how much you earn if you're in work and how often you are paid.
The maximum monthly standard allowance you can get if you're single is £311.68 for under 25s and £393.45 for over 25s. If you live with a partner and you're both under 25, then the maximum you can get per month for both of you is £489.23, while those over 25 will get £617.60.
But the DWP has warned that the amount you earn - and how often you're paid your wages - can affect your Universal Credit payment. As your wages increase, the amount of Universal Credit you will get will automatically reduce, dropping by 55p for every £1 you earn.
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