Date of Screening: 12/01/2022
Screening Outcome - Full EQIA recommended: No
In the Autumn Budget and Spending Review statement of 27 October 2021 the Chancellor announced that the taper rate applied to the earned income received by working claimants of Universal Credit would be reduced from 63% to 55%. This means that for every £1 earned the claimant would retain 45p rather than 37p.
It was also announced that both the lower and higher work allowances would be increased by £500 per annum (rounded up to £42 per month). A work allowance is the amount of net earnings an eligible household with responsibility for a child/children or qualifying young person and/or a household member with limited capability for work can earn before the taper applies and their Universal Credit award is reduced. These measures help to make work pay for low income households on Universal Credit by allowing them to keep more of what they earn, strengthening incentives to move into and progress in work.