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.
Lastly,
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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