Employed claimants will see their Universal Credit payments reduce by 63p for every £1 earned. However, there are work allowances in place which allow claimants to earn a certain amount before their Universal Credit is impacted. The work allowance will apply to claimants if they or their partner are either: Responsible for a child or young person Living with a disability or health condition that affects their ability to work Universal Credit can be impacted by housing costs (Image: GETTY) The work allowance itself can come in two forms which are based on whether a claimant is getting help with housing costs.