Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department plans to introduce a work allowance for all universal credit claimants who do not meet the existing criteria; and if she will make a statement.

Universal Credit is a modern, flexible, personalised benefit reflecting the rapidly changing world of work and replaces six outdated and complex benefits with one. It is simplifying the benefits system and making work pay. Monthly assessment periods align to the way the majority of people are paid and also allows Universal Credit to be adjusted each month. This means that if a claimant’s income falls, they will not have to wait several months for a rise in their Universal Credit.

The Government has made significant investment to improve work incentives including: the reduction in the Universal Credit taper rate from 65% to 63% in 2017, and an extra £1.7 billion a year put into work allowances for working parents and disabled claimants to increase them by £1,000 a year from April 2019. This is providing a boost to the incomes of the lowest paid and result in 2.4 million families keeping an extra £630 per year of what they earn.

We are committed to helping the most vulnerable to improve their life chances by tackling the root causes of poverty, and ensuring that children have the best possible start in life continue to reform the welfare system so that it promotes work as the most effective route out of poverty and is fairer towards those who receive it and the taxpayers who pay for it. We also want to identify opportunities to create a highly productive workforce, improving progression prospects for the lowest paid people so everyone has the right skills to meet the UK’s future demand.