Universal credit update !

Here’s an update on the budget changes to Universal Credit:

The taper rate will change from 63p being deducted from every pound you earn over the work allowance to 55p out of every £1.

Previously, £63 from your universal credit ward would be deducted from every £100 you earned.
Now, only £55 is deducted from your award for every £100 you earn.

That means for every £100 you earn; you will be £8 better off.

The work allowance will increase by £500 per year, which is around £41 per month.

If you receive housing support, your allowance will rise from £293 to nearly £335.
If you do not receive housing support, your work allowance will increase from £515 to around £557.

This measure will be effective by December 2021.

Your ‘surplus earnings’ (when you earn so much, it reduces your Universal Credit award to £0) in a given month can be carried forward.

Your surplus earnings can reduce the amount of your award for up to six further months.
Currently, the first £2,500 of surplus earnings per month is not carried forward – this is called the de minimis threshold.

This measure will keep the de minimis threshold in Universal Credit at £2,500 for 2022-23 rather than lowering the threshold to £300 as planned. This measure is effective from 1 April 2022 until 31 March 2023.

I hope this helps

Feel free to pop questions in the comment box if you need clarification

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