Since its introduction, Universal Credit has come under heavy fire from those who receive it.

The benefit system, which rolled six former benefits into one, is available to people on low income as well as those who are unemployed.

But the amount you receive in payments will often depend on other circumstances such as an increase in earnings and being out of work.

So how do your earnings affect the amount of the Universal Credit you receive?

These are the important Department for Work and Pensions rules that you need to be aware of, reports Birmingham Live.

The earnings 'taper rate'

The Department for Work and Pensions

There's no limit to the amount you can earn while on Universal Credit but the payment reduces as your earnings increase.

It's called a taper rate - because the UC tapers off as your wages go up.

For every £1 you earn your UC reduces by 63p.

In some circumstances, you are allowed to keep a certain amount - this is called the work allowance.

Work allowance

The DWP has what it calls a work allowance. This is the amount you can earn before your Universal Credit is reduced.

The allowance applies if you or your partner are responsible for a child or young person, or are living with a disability or health condition that affects your ability to work.

The allowance is £287 a month if you get help with housing costs, and £503 a month if you don't.

The DWP gives an example of this:

Let's say you have a child and get money for housing costs in your Universal Credit payment. You’re working and earn £500 during your assessment period.

Your work allowance is £287. This means you can earn £287 without any money being deducted.

For every £1 of the remaining £213 you get, 63p is taken from your Universal Credit payment. So £213 x £0.63 = £134.19.

This means you earn £500 and £134.19 is deducted from your Universal Credit.

Can Universal Credit be stopped altogether?

As your income goes up, your Universal Credit will keep going down. It could reach a point where you no longer qualify for any UC at all.

The DWP will tell you when this happens.

If your wages later drop and you think you can get UC again, you'll need to start a new claim online by signing in to your Universal Credit account.

Surplus earnings

If your monthly earnings are more than £2,500 over the amount where your payment stopped, they will be carried forward to subsequent months and still counted as current earnings.

Only when the surplus is gone will you able to claim Universal Credit again. Ask your work coach for advice on this.

If you’re part of a couple who claim Universal Credit together, any surplus earnings will be divided equally between you if you separate.

You’ll then need to re-apply individually, with your part of the surplus earnings counting towards your earnings.

The only time this doesn't happen is if your relationship breaks down because of domestic abuse. In that case, you don't take on any of your partner's surplus earnings.

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