Universal Credit ‘taper rate’ cut by 8% to give claimants an extra £1,000 a year
Mr Sunak announced an increase in benefits for 40% of Universal Credit claimants as he unveiled his 2021 Autumn Budget and Spending Review in the Commons this afternoon
Chancellor of the Exchequer Rishi Sunak has announced today that the Universal Credit taper rate is to be cut by 8%.
Mr Sunak confirmed that the taper rate – the amount of Universal Credit that gets withdrawn for every pound that a claimant earns through work – will be slashed from 63p to 55p on the pound, in an announcement to MPs in the House of Commons this afternoon..
In what was one of the final points addressed as he unveiled the 2021 Autumn Budget and Spending Review, Mr Sunak said that he wants to live in a society that “rewards work”.
In real terms, it means that £2bn pounds a year is being put back into Universal Credit following the £6bn lost by claimants following the end of the weekly £20 uplift.
He said that the cut to the taper rate “takes a first step” towards that vision.
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However, the taper rate changes will only increase the income of those Universal Credit claimants that are currently in work.
Still, with 40% of claimants also working in jobs at least part-time, the Chancellor’s announcement does mean that many will be able to keep more of their benefits.
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The changes will be introduced this year, no later than 1 December 2021.
We are cutting the Universal Credit Taper Rate on December 1st.
It’s a tax cut next year worth over £2bn, he says, that will “benefit nearly two million families who will keep, on average, an extra £1,000 a year”.
It is the first change made to the Universal Credit taper rate in five years.
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Taking to Twitter following the Autumn Budget 2021 announcement to explain the cut to the taper rate in a series of tweets, Mr Sunak said: “We are cutting the Universal Credit Taper Rate not by 1%, not by 2% – but by 8%. From 63p to 55p.
“The Taper Rate withdraws support gradually as people work more hours. It is currently 63%, so for every extra £1 someone earns, their Universal Credit is reduced by 63p. Let’s call this what it is: a tax on work – and a high rate of tax at that – so to make sure work pays, and help some of the lowest income families keep more of their hard-earned money, I have decided that the UC Taper Rate will be cut, not by 1p or even 2p – but by 8p.
“This is a tax on working people – and I’m cutting it from 63p to 55p.”
3/ So, to make sure work pays, and help some of the lowest income families keep more of their hard-earned money. I have decided that the UC Taper Rate will be cut, not by 1p or even 2p – but by 8p.
This is a tax on working people – and I’m cutting it from 63p to 55p.
He then added: “I’m also increasing the Work Allowances by £500, this is a tax cut next year of £2.2 billion, so nearly 2 million families will keep, on average, an extra £1,000 a year.
“We’ll introduce not in April as normal but within weeks, and no later than December 1st.”
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Mr Sunak claimed during his announcement that a single mother of two could be better off by around £1,200 a year, while a couple renting a home with two children could be better off by around £1,800.
You can find more the 2021 Autumn Budget in full on the gov.uk website here.
Manchester Metropolitan University announce landmark partnership with MCR Basketball
Danny Jones
Manchester Metropolitan University (MMU) and Manchester Basketball have detailed a renewed and landmark partnership that looks set to nurture the next generation of talent.
Joining forces with MMU, this is not only the latest effort by MCR Basketball to further invest in young players and grassroots sports here in Manchester, but yet another example of further education creating viable routes into the game for their sporting stars of the future.
While the two organisations already boast an established relationship, this next step in their continued teamwork should prove even more fruitful for both parties, as the still only recently relaunched local basketball side looks to raise its profile in the city.
Confirming their intent to further intertwine their youth development setup and plans to innovate pathways for players, representatives from both met to confirm the announcement this week.
🤝 New partnership to drive basketball innovation & develop future talent. @ManMetUni & Manchester Basketball have announced a new strategic partnership to advance research, education and development of basketball to inspire the next generation of talent. #RepTheCity
With existing coaching staff already working between the two and both of the male and female training camps based over at Platt Lane Sports Complex, it only feels like a natural fit.
Moreover, this increased collaboration between the two is also a promising prospect for MMU Sport, specifically, meaning much more than just the sharing of facilities at the likes of Platt Lane over in Fallowfield and the National Basketball Performance Centre at Belle Vue.
As well as pooled resources, this will also crucially create potential opportunities for those at the uni or preparing to graduate, including student internships and more.
Claire Bradbury, Manchester Basketball CEO, said in an official statement: “As basketball in Manchester enters a new era, we’re excited to formalise our partnership with Manchester Metropolitan University.
“This is a true collaboration bringing together elite, professional basketball and leading academic sports expertise to create opportunities that support the development of players, staff and students.
Together we are investing in the future of basketball to grow the game in our region and working to establish the city of Manchester and Manchester Basketball as one of the leading basketball hubs in Europe.”
Man Met are looking pitch-perfect for the region’s leading ‘college ball’ feeder club, to use more American terminology, already.
Laura Hickman-Sparkes, MMU’s Head of Business Engagement and Partnerships at the Institute of Sport, went on to say: “Basketball is entering an incredibly exciting period, with growing participation, investment and visibility across Europe.”
For example, as well as the Super League Finals having been held at the AO Arena, the city is also most notably hosting a regular season NBA fixture at Co-op Live – a historic moment, to say the least.
“We’re delighted to be partnering with Manchester Basketball at such an important time and look forward to creating opportunities for our students”, she adds, “supporting innovation through research and helping to grow the game across Manchester and beyond.”
In other MMU Sport-related news, their very own ‘Visiting Professor’, who has only just retired from the professional circuit, is also set to fly the flag for the institution and disabled athletes across the country.
Featured Images — Publicity pictures (supplied via Manchester Basketball/Peter Simmons)
News
New Prime Minister Andy Burnham announces VAT cuts on household electricity bills over winter
Emily Sergeant
It’s been less than 24 hours since Andy Burnham officially became Prime Minister, and he’s already announced his first measure.
After giving his first speech as Prime Minister outside the doors of Number 10 yesterday, where he said he intended to ‘give people some breathing space’ straight out the gate, it has now been announced that millions of households across the UK will benefit from immediate action to help with their electricity bills this winter.
The Government says it wants to address the cost of living crisis first and foremost, and will do this by tackling rising bills with a tax cut to remove VAT from domestic electricity bills from 1 October, just in time to impact the next Ofgem price cap.
This immediate action applies and is funded for this financial year.
The cost of this immediate action for this financial year is being funded from the £1.8bn Digital ID programme – which Burnham also announced he would be scrapping.
Any further action – including on funding for longer-term measures – will be taken at the Budget, alongside an Office for Budget Responsibility (OBR) forecast, and all decisions at that point will continue to be funded with the Government’s fiscal rules, it has been confirmed.
Cutting VAT on electricity bills is expected to take around £45 off the yearly Ofgem price cap in October, and this is on top of the £150 removed from bills at the last Budget.
All suppliers are expected to pass the VAT reduction on to all customers, including those on fixed tariffs.
Small businesses who qualify for the domestic energy VAT relief and are not registered for VAT, as well as charities and residential care homes eligible for the reduced rate, will also benefit.
“I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister. We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets, and bring back hope.”
The Manc -
27th October 2021 
