Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she is taking to ensure that changes to (a) Universal Credit taper rates and (b) other benefits (i) encourage more people into work and (ii) support people in work.

As the Chancellor has set out, this Government is reforming the social security system to support people into work, while protecting people who will never be able to – making the system sustainable so that it is there to help those of us that need it now and long into the future.

These changes come on top of our Get Britain Working White Paper which set out the biggest reforms to employment support for a generation, and the increase in the Universal Credit work allowance to £684 per month for those without housing costs or £411 per month for those with housing costs.

In addition, Universal Credit withdraws financial support at a steady rate allowing those on low incomes to keep more of what they earn. It does this by applying a single taper rate of 55% to net earnings before reducing the amount of Universal Credit someone is eligible for. This means claimants still benefit from their income as 45 pence in every pound earned would be kept. In some cases, claimants may also benefit from a work allowance, which is the amount someone can earn before the 55% taper is applied to their net earnings.

These policies are kept under regular review to ensure they continue to make work pay and provide the correct incentives to allow those receiving Universal Credit to move into and progress in work.