Universal Credit

(asked on 11th December 2017) - View Source

Question to the Department for Work and Pensions:

To ask Her Majesty's Government whether, when a Universal Credit claimant has an alternative payment arrangement in place by which the housing element is paid directly to their landlord, the 63 per cent taper on any applicable earnings is applied to (1) both the housing and other elements, (2) the housing element alone, or (3) only the other elements.


Answered by
Baroness Buscombe Portrait
Baroness Buscombe
This question was answered on 20th December 2017

Whilst there are elements in the calculation there is only one payment of Universal Credit. This is important because it allows one taper rate to be applied to any earnings and thus means that work always pays and taking more work will always pay. It is for this reason, that attempts to pay portions of entitlement direct could damage work incentives and add complexity. As a consequence, there are no special rules for elements. Universal Credit is one payment and treated as such.

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