Universal Credit

(asked on 21st July 2026) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government what assessment they have made of whether the taper rate of Universal Credit should be changed.


Answered by
Baroness Sherlock Portrait
Baroness Sherlock
Minister of State (Department for Work and Pensions)
This question was answered on 28th July 2026

The current taper rate of 55 per cent gradually withdraws Universal Credit as earnings increase, allowing customers to retain at least 45 pence of each additional £1 earned, striking the right balance between supporting work incentives and targeting support at those on the lowest incomes. This policy is kept under regular review to ensure it continues to provide the right incentives for people receiving Universal Credit to move into work and progress in employment.

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