The Department for Work and Pensions (DWP) has confirmed that tens of thousands of households on a low income will get a cash boost from today as higher Universal Credit payments land in bank accounts for the first time.
As announced in the Autumn Budget, the taper rate - the amount that a person’s Universal Credit is reduced by as they earn more - has dropped from 63% to 55%.
Simultaneously, work allowances, the amount eligible claimants can earn before their Universal Credit is reduced, have increased by £500 per year.
The changes mean people will keep more of what they earn, representing an effective tax cut worth £2.2 billion for the lowest earners.Taken together the move will see, in total, almost two million of the lowest paid
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