Universal Credit changes

At the end of November 2021, the changes to the Universal Credit taper rate and Work Allowances came into effect.

Work allowances, the amount a claimant can earn before their Universal Credit is reduced, will increase by £500 per year meaning many families will be able to earn over £500 per month before their benefits are tapered off. At the same time, the amount that a person’s Universal Credit is reduced by when their earnings are more than their work allowance, will drop from 63% to 55%.

Taken together, the changes mean almost two million families will be better off by £1,000 a year, on average.

To communicate these changes, the DWP have created an animated explainer on what these are, and what the changes mean. This short video can be viewed here.

Although most families will be better off, we recognise that some may not.  If, after watching the short video you have any questions please get in touch.  Our staff have been trained to understand the changes and how they will affect you. For further advice and support, please call us on 0300 123 6000.

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