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Taper rate announcement means workers can keep more of their hard-earned cash

27 Hydref 2021

Citizens Advice has responded to an announcement in today’s Budget speech that the taper rate in Universal Credit will be reduced.

Morgan Wild, Head of Policy at Citizens Advice, said:

“Today’s welcome announcement will ensure working people on Universal Credit can keep more of their hard-earned cash. 

“But it doesn’t cushion the blow of the £20-a-week cut for those still looking for work or the 1.7 million unable to work because of disability, health issues or caring responsibilities. 

“Given the cost of living crisis, the government must ensure every family is able to access the support they need this winter.”

Background

Universal Credit decreases gradually as you earn more. Today’s announcement means that for every £1 someone earns after income tax, their Universal Credit will reduce by 55p instead of 63p. 

Notes to editors

  1. Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
  2. Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.
  3. The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.
  4. Citizens Advice offers Pension Wise services at 500 locations in England and Wales.
  5. Citizens Advice’s services are free, independent, confidential and impartial, and available to all regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  6. To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk
  7. For consumer advice, call the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 to talk in Welsh.
  8. We helped 2.6 million people face to face, by phone, email and webchat in 2017-18. For service statistics see our monthly publication Advice trends.
  9. Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.