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Liverpool Echo
Liverpool Echo
National
Daniel Milligan & Liam Thorp

DWP says Universal Credit families will get £630 extra payments from today

Millions of working families up and down the UK are about to get a little bit more money in their pockets - due to a Universal Credit change.

Starting on Saturday, April 6, the Universal Credit Work Allowance - which is the amount people can earn before benefits start to taper - will increase by £1,000 a year.

The 'work allowance' is the amount of money you’re allowed to earn before your Universal Credit payment is affected.

Your Universal Credit payment then goes down by 63p for every £1 you earn above this amount. This is called the earnings taper.

So by raising this allowance, people can earn more money before their payments are reduced, as our colleagues at Chronicle Live report.

The Government says that about 2.4million households will get to keep an extra £630 each year.

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The work allowance has two different rates depending on whether you also get help with your housing costs.

A Job Centre Plus branch (Gareth Fuller/PA Wire)

Under the old rules, the lower work allowance for people claiming housing benefit was £198.

That's rising to £287, meaning that you can earn an extra £89 a month before payments are reduced.

For families claiming the higher allowance - meaning they don't claim housing benefit - that allowance is rising from £409 to £503. As a result you can earn £94 more a month before benefits are cut.

Woman breaks down as Universal Credit leaves her children without food

The work allowance applies to single people, couples with dependent children, or those with limited capability to work.

Workers without children who depend on them don't qualify, meaning that every penny they earn is subject to the taper rate.

But the changes may not mean too much for the many people who are struggling because of the botched Universal Credit taking place in the country.

Large parts of Merseyside have now been switched over to the six-in-one system, but the ECHO has received a huge number of reports of problems

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