DWP explains how much you will have to earn to affect Universal Credit claim

People claiming Universal Credit could risk losing part or all of their award depending on how much they earn. The Department for Work and Pensions (DWP) can deduct some of your or your partner's reward if either is working.

While there are no limits to how many hours you can work while still claiming Universal Credit, your wages will have a significant effect.

Consequently, if you stop work or if your wages decrease, you could see an increase in your Universal Credit payments. Meanwhile, various other sources of income could see you lose part or all of your Universal Credit claim.

Read below for a full breakdown on the things that could decrease your Universal Credit payments.

How wages affect your claim

For every £1 you earn from your wages, your Universal Credit award will drop by 55p. Your income will also be factored in as your wages plus your new Universal Credit payment.

Generally, your employer will report your wages for you. However, if you are self-employed, you will be required to report your monthly earnings.

Deductions are made from your Universal Credit when you earn either up to £411 a month, or £684 a month, depending on your circumstances.

You can earn up to £411 a month before deductions if you either receive help with housing costs through Universal Credit or if you live in temporary accommodation arranged by your council because you're homeless. However, if none of these conditions apply, then you can earn up to £684 a month before deductions are made from your claim.

Other factors that can affect your claim.

Similarly, the DWP can reduce your Universal Credit award if you have savings or investments. If your cash, savings, and investments total more than £6,000, your benefit will be reduced by £4.35 for every £250 between £6,000 and £16,000.

An extra £4.35 is deducted even if the additional amount saved is less than £250.

For example, if you have £6,300 in savings, no deductions are made on the first £6,000, but the remaining £300 would result in a deduction of £8.70 from your payments. These rules apply whether you're claiming as an individual or as part of a couple.

Generally, you won't be eligible for Universal Credit if your savings or investments exceed £16,000. However, if you're currently receiving Tax Credits and have been asked to switch to Universal Credit, you could still qualify for Universal Credit for up to a year, even if you have more than £16,000.