Yahoo Movies Budget 2021: Universal Credit Taper Rate Reduced In Bid To Compensate For £20 Cut
People claiming Universal Credit who are in-work will be able to keep more of the money they earn, Rishi Sunak has announced.
Unveiling his Budget in the Commons on Wednesday, the chancellor said the “taper rate”, the amount of benefit taken away for every £1 earned above the claimant’s work allowance, will be slashed from 63p to 55p.
Sunak said it would mean nearly two million families will keep, on average, an extra £1,000 a year.
He added change would be made “within weeks” and by no later than December 1.
Watch: Budget 2021: Rishi Sunak insists he is lowering taxes and that is the fairest way out of the pandemic
But Labour said the change would not make up for the £20-a-week reduction in the benefit made earlier this month.
The move also does not do anything to help the millions of claimants who are not in work, including those who cannot work due to illness.
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This article originally appeared on HuffPost UK and has been updated.
