Commons Sense

House of Commons · Ministers' Questions

Universal Credit Taper Rate

Monday 5 December 2022 · 3 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 2 Not answered 0

Key points

  • The earnings taper for universal credit was reduced to 55% last December.
  • The work allowance for universal credit claimants was increased by 500 per year.
  • The Department is rolling out the new in-work progression offer to support 2.1 million working universal credit claimants.

Topics (select to filter)

Questions & Answers

Q1 Greg Smith Con Mid Buckinghamshire
Benefits & Welfare
Context

The MP is concerned about the potential merits of reducing the universal credit taper rate on people's incomes.

Question

What assessment has been made of the potential merits of reducing the universal credit taper rate on the levels of people's incomes?

Answer from Guy Opperman

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.

Answered
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Q2 Mark Pawsey Con
Employment Benefits & Welfare
Context

The claimant rate in Rugby is just 2.8%, and employers face workforce challenges due to the taper rate cut.

Question

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?

Answer from Guy Opperman

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.

Partly answered

Not addressed: Specific steps beyond mentioning rollout of programme

How: Looking At This

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Q3 Greg Smith Con Mid Buckinghamshire
Employment Benefits & Welfare
Context

The MP is concerned about the importance of increasing access to work coaches for reducing unemployment.

Question

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.

Answer from Guy Opperman

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.

Partly answered

Not addressed: Specific agreement on importance of work coaches

How: Under Review

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