Source · Select Committees · Welsh Affairs Committee
Recommendation 14
14
Accepted
Paragraph: 96
The UK Government should take forward the recommendations of the In-Work Commissioner and review how...
Recommendation
The UK Government should take forward the recommendations of the In-Work Commissioner and review how the taper rate and work allowances can best support in-work progression.
Government response summary AI-generated
The government will allocate £99m to provide around 2.1m low-paid benefit claimants with support to progress into higher-paid work through work coach support and Progression Champions working with local partners.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
96
Government Response
Accepted
HM Government · verbatim extract
Accepted
The UK Government has already taken action in response to Baroness McGregor-Smith’s report, commissioned by the Secretary of State, to significantly improve the work incentives in Universal Credit. Since last November, the UK Government has cut the Universal Credit taper rate from 63% to 55% and increased Universal Credit work allowances by £500 per year. These two measures mean 1.7m households will keep on average, around an extra £1,000 a year. These changes represent an effective tax cut for low income working households in receipt of Universal Credit worth £1.9 billion a year in 2022-23. They will allow working households to keep more of what they earn and strengthen incentives to move into and progress in work. Moreover, work allowances have been further increased as part of the annual up-rating exercise in April.
Read the full response on Parliament ↗