Source · Select Committees · Scottish Affairs Committee
Recommendation 19
19
Paragraph: 112
We also recommend that DWP raise the work allowance for Universal Credit claimants and re-establish...
Conclusion
We also recommend that DWP raise the work allowance for Universal Credit claimants and re-establish work allowances for single adult claimants so that they can keep more of the money they earn, to allow them to work their way out of poverty.
Paragraph Reference:
112
Government Response
Not Addressed
HM Government
Not Addressed
Universal Credit aims to reduce the number of workless households by reducing financial and administrative barriers to work. The 63% single earnings taper rate ensures that payments reduce in a transparent and predictable way as earnings increase. A work allowance is an amount that claimants can earn before their Universal Credit starts to reduce by the taper rate. The work allowance is targeted on those claimants with the greatest barriers to the labour market namely those responsible for children or who have limited capability for work. The UK Government has no plans to extend the work allowance to single adults. The work allowance is increased each year as part of the normal benefits uprating process. In addition, at the Autumn 2018 budget, an extra £1.7 billion a year was put into work allowances to increase them by £1,000 in April 2019, strengthening the Universal Credit work incentives even more and providing a boost to the incomes of the lowest paid. This resulted in 2.4 million families keeping up to an extra £630 per year of what they earn.