Universal Credit Taper Rate 2022-12-05
2022-12-05
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Response quality
Questions & Answers
Q1
Direct Answer
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Context
The MP is concerned about the potential merits of reducing the universal credit taper rate on people's incomes.
What assessment has been made of the potential merits of reducing the universal credit taper rate on the levels of people's incomes?
We reduced the earnings taper to 55% last December and we increased the work allowance by £500 a year. As a consequence, 1.7 million households will benefit from these measures, which mean that they keep, on average, around an extra £1,000 a year.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
The claimant rate in Rugby is just 2.8%, and employers face workforce challenges due to the taper rate cut.
Will he set out what further steps his Department can take to encourage claimants—those who can—to increase their income by taking on more and better-paid work?
Since April 2022, we have been rolling out the new in-work progression offer, which will support approximately 2.1 million working universal credit claimants to progress into higher-paid work. They will also be supported by progression champions.
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Assessment & feedback
Specific steps beyond mentioning rollout of programme
Looking At This
Response accuracy
Q3
Partial Answer
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Context
The MP is concerned about the importance of increasing access to work coaches for reducing unemployment.
Does my hon. Friend agree that it is not the only critical element? To keep unemployment as low as it is today or lower, things like increasing access to work coaches are equally important.
A huge amount is being done to increase the time that individual claimants spend with work coaches. More intensive support is being provided. The additional earnings threshold, which my hon. Friend will be fully aware of, is also being rolled out across the country.
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Assessment & feedback
Specific agreement on importance of work coaches
Under Review
Response accuracy