The Universal Credit Regulations define earnings as 'the remuneration or profits derived from':
- Employment under a contract of service or in an office (including elective office) including agency workers, or
- A trade, profession or vocation, or
- Any other paid work^, or
- Any income treated as earned income for the purposes of Universal Credit.
^Paid work means work done for payment or in expectation of payment.
It is the actual net earnings^ paid (or for self-employment - net profits made*) in each of the claimant's Monthly Assessment Periods^^ (MAPs) that the DWP will use when assessing the claimant's entitlement to Universal Credit.
Any net earnings from employment or self-employment^^^, above the claimant's
work allowance will reduce the claimant's Universal Credit award by 55%.
This means that as earnings fluctuate, the claimant's Universal Credit award will also fluctuate.
^ 'Derived from' means have their origins in. So payments for past and present employment should be treated as earnings received in a Monthly Assessment Period unless specifically excluded.
^^ Special rules for monthly earners where two wages paid in same MAP - click here. ^^^ Special rules for those affected by the 'minimum income floor'. -
click here.
Click on the links below for more information...…….