In Wednesday’s Budget, one of the major announcements from the chancellor was that the Universal Credit taper will be reduced from 63% to 55% in a bid to help those full-time workers keep more of their earnings.
The change will come into effect no later than 1st December and will support many of the lowest paid families by providing them with £1,000 a year more on average. Rishi Sunak said it would affect some two million families.
Commenting on the new UC announcement, Sherrelle Collman, Managing Director of Caridon Landlord Solutions says: “We welcome the Chancellor’s announcement to cut the Universal Credit taper rate. As an organisation that works with landlords who house tenants in receipt of Universal Credit, any additional support to help the lowest-paid individuals and families is encouraging. An additional £1000+ a year will make a significant difference to those who fall into this category.
However, it was disappointing that there was not more support outlined for renters as people on Universal Credit who are not working will not benefit from the policy. Thousands have been forced onto Universal Credits during the pandemic after losing their jobs and it will come as a huge blow that the reduction fails to support them too. Earlier this month the government scrapped the £20 a week uplift, taking £1,040 a year from 6 million claimants, and I was hopeful that it would be brought back as part of the Budget. Households face more pressure with the cost of living rising at a rapid rate, after paying rent and bills, many renters will be left with nothing for food or emergencies.”