Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698926303374.pdf (United Kingdom)
Payment Overview First published: Date (version 1) Contents Introduction Stage 0 – Identify the benefit unit Stage 1 – Calculate the Universal Credit maximum amount Stage 2 – Calculate the Universal Credit award Stage 3 – Calculate the Universal Credit entitlement Stage 4 – Calculate the Universal Credit payment Introduction The Universal Credit payment calculation is set out in this document to help explain the key stages of the process.
Stage 0 – Identifying the benefit unit Identify one (or two) eligible (and connected) adult claimants PLUS Any relevant child dependents EQUALS The benefit unit Separately Identify other connected ineligible adults (who are part of the assessment unit Identify (for housing purposes only) any non-dependents Notes to support the above stage:  Eligible satisfies the basic conditions:  on age  claimant signs the Claimant Commitment  £16,000 capital limit for a couple  It should be noted that some Transitional Protection cases won’t fulfil eligibility conditions  Universal Credit awards are made in respect of a benefit unit  If one adult in a couple is ineligible, they are still a part of the assessment unit.
Stage 1 – Calculate the benefit unit’s maximum amount by adding up relevant amounts Adults Standard Allowance 4 set rates dependent upon 1 or 2 adults and if under or over 25 years of age Plus where appropriate, the following additions Children Child / Disabled Child Higher set rate for first child, lower set rate for second and subsequent children.
Extra set amount if children are:  disabled  severely disabled Childcare Carer Limited Capability for Work 85% costs to a cap Set rate Limited Capability for Work or Work Related Activity A higher flat rate Limited Capability for Work A lower flat rate Housing Rent Size criteria, claimant age, lower of rent or Local Housing Authority rate Owner Standard Mortgage Interest – to a cap The sum of all these relevant amounts equals the Universal Credit maximum amount Stage 2 – Calculate the Universal Credit adjusted award Universal Credit maximum amount minus Any Tariff Income from applicable capital in the assessment unit minus Any other source of applicable income in the assessment unit minus Any earnings via Real time information or earnings equivalent in the assessment unit (including self-employed Minimum Income Floor) taking account of disregards and 65% Earnings Taper where appropriate Gives an adjusted award minus Any reductions required to take account of the Benefit Cap plus Any increases necessary (where the Benefit Cap does or will not apply to take account of Transitional Protection) equals The Universal Credit adjusted award The adjusted award is calculated by reducing the Stage 1 maximum amount, taking account of the key financial conditions and further revise the maximum amount (post-Step A) to take account of the other 2 key adjusting criteria.
Stage 3 – Calculate the Universal Credit entitlement Universal Credit award minus Any conditionality sanctions (plus any Hardship Payment amounts if awarded) Universal Credit entitlement (subject to a 1p minimum) equals Stage 4 – Establish any deductions to be made to Universal Credit entitlement to work out the Universal Credit payment Universal Credit entitlement plus Any short-term or budgeting advance and minus Deductions For example: fraud sanctions   Third Party deductions   Child Maintenance Group payment recovery of overpayment  Benefit Advance equals The Universal Credit payment