Universal Credit

The Government has listened to the concerns about Universal Credit, which is being introduced slowly and carefully, with changes made where necessary.

In the Budget, the Chancellor decided that the amount that households with children, and people with disabilities, can earn before their Universal Credit award begins to be withdrawn – the Work Allowance – will be increased by £1,000 from April 2019. This means that 2.4 million households will keep an extra £630 of income each year.

The government has also heard the representations from stakeholders on Universal Credit, and the Budget also announced an extensive package of extra support for claimants as they make the transition to Universal Credit.

This package will be worth around £2.7bn a year and has been funded without raising taxes. In fact, those on lower incomes are receiving a tax cut, worth around £130 per year.