Universal Credit Taper Rate Reduction: Household Budgets

Part of Work and Pensions – in the House of Commons on 13th December 2021.

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Photo of David Rutley David Rutley Assistant Whip (HM Treasury), The Parliamentary Under-Secretary of State for Work and Pensions

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. We are allowing working households to keep more of what they earn and strengthening incentives to move and progress in work.