Commons Sense

House of Commons · Ministers' Questions

Universal Credit Taper Rate Reduction: Household Budgets

Monday 13 December 2021 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • The reduction in the universal credit taper rate means 1.9 million households will keep on average an extra 1000 a year.
  • The change in the taper rate and work allowances is worth 2.2 billion a year in 2022-23.
  • Employer partnership teams are working closely with local employers to help claimants understand the benefits of recent changes to universal credit.

Topics (select to filter)

Questions & Answers

Q1 Karl McCartney Con
Benefits & Welfare
Context

The MP inquired about the impact of reducing the universal credit taper rate.

Question

What assessment has been made of the impact of the universal credit taper rate reduction on household budgets?

Answer from David Rutley

The reduction in the taper rate and increase in the work allowances mean that 1.9 million households will keep on average an extra £1,000 a year, representing an effective tax cut for low-income working households in receipt of universal credit that will be worth £2.2 billion a year in 2022-23.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q2 Karl McCartney Con
Benefits & Welfare
Context

The MP inquired about the impact of universal credit on low-pay sectors' employees.

Question

Unlike the legacy system, which has in-built cliff edges, universal credit ensures that it always pays to take on more hours. Will my hon. Friend commit to working with employers, especially those in my constituency of Lincoln, in low-pay sectors to ensure that they can help their employees understand that?

Answer from David Rutley

Throughout our job network, our employer partnership teams and employment advisers are working closely with local employers to ensure that they help claimants understand how best to benefit from the recent positive changes to universal credit taper rates and work allowances.

Partly answered

Not addressed: commitment to specific action by employers in Lincoln constituency

How: With His Fantastic Shirt, Characteristic Energy

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email