Edinburgh Universal Credit claimants will get an extra £1000 per year after DWP rule change.
The Department for Work and Pensions (DWP) confirmed today that an adjustment in Universal Credit taper rate and work allowances will start immediately.
The Daily Record reports that the new rules have now been set to ensure the massive £2 billion tax cut announced in the Autumn Budget to “reward work” will come into law on Wednesday.
READ MORE: Nicola Sturgeon's decision on Covid-19 rule changes in Scotland due tomorrow
Universal Credit work allowances, the amount a claimant can earn before their benefit is changed, meaning many families will be able to earn over £500 each month before their benefits are reduced.
Simultaneously, the taper rate, the amount that a person’s Universal Credit is reduced by when their earnings are more than their work allowance, will drop from 63 per cent to 55 per cent.
Taken together, the changes mean almost two million families will be better off by £1,000 a year, on average, however, this is less than a third of the 5.2 million households hit by the removal of the £20-a-week Universal Credit uplift.
Announcing the changes to the Commons in October, Chancellor Rishi Sunak, said: “This is a £2 billion tax cut for the lowest paid workers in our country.
“It supports working families, it helps with the cost of living and it rewards work.”
Responding to the Universal Credit announcement, Citizens Advice Scotland Chief Executive Derek Mitchell said: “Changes to Universal Credit so working people can keep more of what they earn are very welcome, and something Citizens Advice Scotland has been campaigning for.
“However, for many it will not make up for the impact of reducing Universal Credit by £20 per week, particularly as inflation is rising and energy bills have gone up.
“In Scotland, around four in 10 people on Universal Credit are in work - so changes to the taper rate don’t help six in 10 claimants.”
Analysis by Citizens Advice Scotland revealed that over 1.4 million people ran out of money before pay day during the coronavirus pandemic.
