Oral Answers to Questions
Debate between Richard Quigley and Stephen Timms(2 days, 17 hours ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Richard Quigley (Isle of Wight West) (Lab)
Young people in supported housing, including in my constituency, effectively pay a marginal rate of tax of 55% on their universal credit when they start work, meaning that earnings of just £133 a week see their housing benefit tapered to nil. That means that work does not pay. Will the Minister look at the economic benefits of reducing that taper and increasing the applicable amount, ensuring that work does pay and improving housing security?
Sir Stephen Timms
My hon. Friend raises a very important point. There is a problem in the interaction between the universal credit taper rate and the housing benefit taper for people in supported and temporary accommodation. We are, at the moment, looking at options for how to tackle that quite serious work disincentive problem.