It's being reported that the Universal Credit taper rate 'could be slashed' by the Chancellor of the Exchequer on Wednesday (March 23). The taper rate is how your Universal Credit payments are reduced once you earn more than your work allowance.
The Universal Credit earnings taper rate is currently 55%. This means that for every £1 claimants earn over their work allowance, their Universal Credit will be reduced by 55p. This amount will be deducted automatically from their Universal Credit payment.
Ahead of the Spring Statement, there were reports that the lowest-paid workers could get a tax cut in the shape of the taper change.
Mr Sunak may also raise the rate of earnings allowed before the effective tax kicks in, reports The Sun.
Work Allowance per month is currently set at £293 if Universal Credit includes Housing Support. It's at a rate of £515 if Housing Support is not included.
Speaking on Sunday (March 20), Mr Sunak said: "For people on Universal Credit, we’ve taken an approach to help make sure their work is rewarded and, of course, I want to make sure that we’re helping people who are most vulnerable.
“I’m enormously proud that we’re doing that because I want to make sure that those people get our help, and they are getting our help."
