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  • Changes to the Universal Credit taper rate

    Created: 05/12/2021

    Last week, the changes to the Universal Credit taper rate and Work Allowances came into effect.

    Work allowances, the amount a claimant can earn before their Universal Credit is reduced, will increase by £500 per year meaning many families will be able to earn over £500 per month before their benefits are tapered off. Simultaneously, the taper rate, the amount that a person’s Universal Credit is reduced by when their earnings are more than their work allowance, will drop from 63% to 55%.

    Taken together, the changes mean almost two million families will be better off by £1,000 a year, on average.  

    To communicate these changes, the Department for Work and Pensions have created an animated explainer on what these are, and what the changes mean.

    To watch the video you will need to enter the password: monR8w_22




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