Universal Credit Taper Rate Reduction Household Budgets 2021-12-13
2021-12-13
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Questions & Answers
Q1
Direct Answer
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Context
The MP inquired about the impact of reducing the universal credit taper rate.
What assessment has been made of the impact of the universal credit taper rate reduction on household budgets?
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.
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Assessment & feedback
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Q2
Partial Answer
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Context
The MP inquired about the impact of universal credit on low-pay sectors' employees.
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?
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.
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Assessment & feedback
commitment to specific action by employers in Lincoln constituency
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