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What is universal credit?Universal credit is a single benefit payment for working-age people, which was introduced to replace a range of different benefits for unemployed and low-paid people, and make the system simpler.It's claimed by more than 5.8 million people in England, Scotland and Wales, both in and out of work - 40% of universal credit claimants are workers.Claimants received an extra £20 per week during the pandemic, but this ended at the beginning of this month.
What is the taper rate?
Most universal credit claimants lose some of their benefits if they earn more money.The rate at which they lose the benefits is known as the taper rate.At the moment the taper rate is 63%, which means that if you earn an extra pound you lose 63p in benefits.Workers with responsibility for children or disabilities that limit their ability to work are allowed to earn a certain amount before they start losing their universal credit, which is called a work allowance.
