Millions of people across the country are about to getting a big boost to their everyday lives as changes to the Universal Credit system means up to £630.
From today the Government's Universal Credit Work Allowance has changed the amount people can earn before benefits start to taper 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.
The Government says that about 2.4million households will get to keep an extra £630 each year.
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It means the work allowance has two different rates depending on whether you also get help with your housing costs, reports Chronicle Live.
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.
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.
