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Written Question
Social Security Benefits
Tuesday 17th March 2020

Asked by: Lord Davies of Stamford (Labour - Life peer)

Question to the Department for Work and Pensions:

To ask Her Majesty's Government what estimate they have made of the additional cost of withdrawing benefits when claimants increase their revenues from other sources at the Income Tax rate of 20 per cent instead of the marginal rate of 63 per cent.

Answered by Baroness Stedman-Scott

No such estimate has been made.

Universal Credit promotes work as an effective route out of poverty and the single taper rate means people know they will always be better off in work or working more. The rate of the taper reflects the need to balance work incentives with fairness to taxpayers.