Saturday, August 13

Autumn Budget 2021: Universal Credit cash boost confirmed for millions of workers but £20 uplift won’t return

This means for every £1 you earn, your Universal Credit payments will soon be docked by 55p per £1 instead of 63p per £1-an 8p per pound saving. In addition, work allowances for households with children or a limited capacity for work will rise by £500 a year, also by 1 December. This means these households will be able to earn more before their Universal Credit payments are hit by the taper rate.

Mr Sunak said: “[These two changes will] benefit nearly two million families who will keep, on average, an extra £1,000 a year.” He added: “A single mother of two, renting, and working full-time on the National Living Wage will be better off by around £1,200 . And a couple, renting a home with their two children; one working full-time, the other working part-time will be better off, every single year, by £1,800.”

These shake-up will apply across Great Britain, while funding is being provided to the Northern Ireland Executive to implement equivalent measures.

However, Mr Sunak stopped short of reintroducing a £20/week uplift for all Universal Credit claimants-not just those in work. This benefit had been introduced to help those on a low income struggling due to the impact of Covid-19 but the uplift was axed at the end of September 2021-much to the dismay of campaigners.

More to follow…