Benefit changes ‘to help families’

HOUSEHOLDS in Halton receiving Universal Credit could keep more of what they earn due to a £700m boost.

A Department For Work And Pensions (DWP) spokesman said the payment’s taper rate has been lowered from 65p to 63p for every £1 a claimant earns over their work allowance.

It is the rate at which a Universal Credit payment reduces as someone moves into work.

The spokesman said the change means ‘some’ households – including their exam- ple of a couple with two children earning £30,000 annually – could benefit by £425 a year.

Secretary Of State For Work And Pensions Damian Green said: “Creating a welfare system that rewards work is central to our plan to build a fairer Britain for all.

“We want everyone to be able to get on and support their families. That’s why through Universal Credit, when people start work, they keep more of every pound they earn.

“This complements the support that work coaches are already offering to help people progress in their jobs, to take on more hours and earn more money, by making sure that it always pays to be in work.”

Universal Credit replaces six benefits with a monthly payment that gradually reduces as earnings increase.

The DWP spokesman said evidence shows people are also moving into jobs faster and staying in work longer than under the old system and that three million households across the country could benefit from the changes.

Universal Credit is available for all new claims from single jobseekers.

The reduced Universal Credit taper rate was announced in the autumn 2016 budget.

The current work allowance is £397 per month if a Universal Credit payment does not include housing support, or £192 per month if it does.