Surplus earnings figures for 2026/27 set out

Turn2us, an independent charity, has set out the figures used to calculate surplus earnings for Universal Credit in 2026/27, including the element rates, work allowances and the £2,500 threshold that determine whether a claimant is affected¹.

Under the rule, a claimant has surplus earnings if they earn more than £2,500 above the amount they can earn before their Universal Credit claim is stopped¹. That surplus is taken into account in the next monthly assessment period, which may lower the payment or mean no payment at all that month¹. If earnings fall, the surplus decreases, and a payment becomes possible again once the surplus has gone or six months after the original surplus was created, whichever is earlier¹. Where a couple with surplus earnings separates, the surplus is divided equally between them, and the claimant's half is usually taken into account if they make a single claim¹.

The maximum entitlement is built from the elements below, before unearned income is deducted¹.

There is usually no child element for a third or subsequent child born after 6 April 2017¹. The housing element depends on tenure: in private rented accommodation it is calculated using the Local Housing Allowance for the area, while in social rented accommodation it is the monthly rent unless the bedroom tax applies, with 14% deducted for one spare bedroom and 25% for two or more¹. Where adults in the household are not a partner or subtenant, £96.55 a month is deducted for each; those who do not rent get no housing element¹.

Unearned income is then subtracted from maximum entitlement, including income treated as coming from savings over £6,000, calculated by subtracting £6,000 from total savings, dividing by 250 and multiplying by 4.35¹. It includes New Style Employment and Support Allowance, New Style Jobseeker's Allowance, Maternity Allowance, Carer's Allowance or Carer Support Payment, but not Child Benefit, Scottish Child Payment, disability benefits, or statutory payments such as Statutory Sick Pay and Statutory Maternity Pay¹. The remaining figure is multiplied by 100 and divided by 55, £2,500 is added, and a work allowance is added where entitled: £710 for those with children or limited capability for work who do not get help with housing costs, or £427 for those who do¹. That total is subtracted from expected income for the assessment period; a positive figure is treated as earnings in the next period¹.

Why it matters for households

The figures apply to Universal Credit claimants in work whose earnings rise above the £2,500 threshold in an assessment period, and to couples who separate while carrying surplus earnings¹. A surplus carried into the next assessment period can reduce the amount paid or stop payment entirely for that month, and the effect can persist for up to six months from when the surplus arose¹. The element rates and work allowances also feed into the maximum entitlement figure used in the calculation, so they affect how much surplus is generated in the first place¹. How much is deducted from an award more generally is covered in Universal Credit deductions, and the taper that applies to earnings is explained in how earnings reduce Universal Credit.

What happens next

The 2026/27 figures are the amounts to use for assessment periods in that year¹. Turn2us says the calculation can be hard to work out and directs claimants to its benefits calculator and adviser finder tool¹. No further dates for changes to these amounts have been reported.