Department for Work and Pensions Announces Changes to Universal Credit Payments

The Department for Work and Pensions (DWP) has revealed upcoming changes to Universal Credit payments, which are set to commence in June 2023. Here’s what you need to know:

1. Increased Standard Allowances: The standard allowance for Universal Credit will rise by £65 per month for single individuals and £130 per month for couples. As a result, single recipients will receive £292.11 per month, while couples will receive £522.22 per month.
2. Addressing the Cost of Living Crisis: The DWP acknowledges the escalating cost of living and aims to alleviate the financial strain faced by individuals on low incomes through these adjustments. These changes are intended to provide much-needed support to families.
3. Automatic Payments: The increased Universal Credit payments will be implemented on June 6, 2023. If you are currently receiving Universal Credit, you will not need to take any action to claim the additional funds. The increased allowances will be automatically paid to you.
4. Taper Rate Reduction: The DWP also plans to reduce the taper rate for Universal Credit. The taper rate refers to the amount of Universal Credit withdrawn as you start earning income. The rate will be reduced from 63% to 55%, allowing individuals to retain more of their earnings when they enter employment.
5. Implementation Date: The changes to the taper rate will take effect on October 6, 2023. Similar to the increased allowances, if you are on Universal Credit, you will receive the revised taper rate automatically without needing to make any claims.
6. Encouraging Employment: The DWP’s objective with these changes is to facilitate individuals’ re-entry into the workforce. By increasing financial support and adjusting the taper rate, they hope to incentivize more people to seek employment, ultimately contributing to the economy.

Conclusion:

The announced changes to Universal Credit payments, including increased standard allowances and a reduced taper rate, are promising developments for individuals facing financial hardship. These adjustments aim to alleviate the burden on low-income families and foster a smoother transition into employment.