One million Universal Credit claimants given £420 a year...

Families in Norfork community that qualify for the benefit could benefit by £420 annually.

With the implementation of a significant policy change today, over a million Universal Credit recipients will now

retain £420 more annually. The maximum amount that can be taken out of benefits to pay off debts, known as the

Fair Repayment Rate, is being cut from 25% to 15%.

A significant 2.8 million households are impacted by this shift since they receive monthly deductions from their

Universal Credit payments to pay off debts.

“As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits

they are entitled to – which will boost financial security and improve living standards up and down the country,” said

Liz Kendall, secretary of work and pensions.

“To guarantee that everyone has an equal opportunity, the assistance they require, and genuine hope for the future,

we are implementing significant reform.

According to the Mirror, the standard allowance—the main amount received before any additional benefits or

deductions are made—is the foundational component of universal credit. The maximum Universal Credit amount for

working people is subject to a taper rate, which progressively drops as income rises.

The current taper rate is 55%, meaning that 55 pence is subtracted from the maximum amount of Universal Credit

that can be obtained for each extra pound earned.

Furthermore, there is a “work allowance” in place, which is the maximum amount of money one can make before it

affects their eligibility for Universal Credit. It’s also important to note that Universal Credit payments have increased

by 1.7% recently.

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