Three million households across the country to keep more of what they earn due to a £700 million boost to Universal Credit.
Three million households across the country, including lone parents and those on the lowest incomes, are set to keep more of what they earn due to a £700 million boost to Universal Credit.
From today the taper rate, the rate at which a Universal Credit payment reduces as someone moves into work, will be lowered from 65p to 63p. The change means that some households could benefit by £425 a year.
Secretary of State for Work and Pensions, Damian Green, said:
“Creating a welfare system that rewards work is central to our plan to build a fairer Britain for all. We want everyone to be able to get on and support their families. That’s why through Universal Credit, when people start work they keep more of every pound they earn.
“This complements the support that work coaches are already offering to help people progress in their jobs, to take on more hours and earn more money, by making sure it always pays to be in work.”
Universal Credit replaces 6 benefits with a monthly payment that gradually reduces as earnings increase, making sure people are better off in work. Evidence shows people are also moving into jobs faster and staying in work longer than under the old system.