Universal Credit

(asked on 8th November 2021) - View Source

Question to the Department for Work and Pensions:

What assessment her Department has made of the potential effect of ending the universal credit uplift on levels of in-work relative poverty.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 8th November 2021

The uplift to Universal Credit was a temporary measure, that is why an assessment has not been completed on its withdrawal.

This Government is wholly committed to supporting those on low incomes, and continues to do so through many measures. We expect to spend over £111 billion on welfare support for people of working age in 2021/22.

Universal Credit recipients in work will soon benefit from a reduction in the Universal Credit taper rate from 63% to 55%, and increasing the work allowance by £500 per year means that 1.9m working households will be able to keep substantially more of what they earn. These changes represent an effective tax cut for low income working households in receipt of UC worth £2.2 billion a year in 2022-23, for the lowest paid in society, and are combined with a rise in the National Living Wage to £9.50 per hour.

We recognise that some people may require extra support over the winter as we enter the final stages of recovery, which is why vulnerable households across the country will now be able to access a new £500 million support fund to help them with essentials. The Household Support Fund will provide £421 million to help vulnerable people in England with the cost of food, utilities and wider essentials. The Barnett Formula will apply in the usual way, with the devolved administrations receiving almost £80 million (£41m for the Scottish Government, £25m for the Welsh Government and £14m for the NI Executive), for a total of £500 million.

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