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Mr Sunak confirmed that the taper rate – the amount of Universal Credit that gets withdrawn for every pound that a claimant earns through work – will be slashed from 63p to 55p on the pound, in an announcement to MPs in the House of Commons this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.
ADVERTISEMENT
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.
ADVERTISEMENT
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.
ADVERTISEMENT
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.”
ADVERTISEMENT
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.
Simon Wood announces gutting closure of Manchester restaurant after seven years
Danny Jones
Celebrity chef and Manchester local Simon Wood has announced that his self-titled WOOD Restaurant has sadly closed its doors.
The Oldham-born chef-owner who won MasterChef back in 2015, revealed the unfortunate news on Wednesday, 2 October, confirming that the First Street site will be closing immediately. Truly gutting.
Wood has remained one of Greater Manchester’s most-renowned chefs for the past decade, not to mention a huge advocate for supporting the hospitality industry, especially post-Covid and during the ongoing cost of living crisis.
Sharing an emotional post on Instagram, he wrote: “It is with much regret that I have to inform you that I must close the doors here at WOOD for good, with immediate effect.”
“We have had 7 years as part of the Manchester city dining scene and I’m very proud of what the team and I have achieved”, the 48-year-old continued.
“Sadly with COVID rent arrears now being demanded by our landlord and an increasingly difficult marketplace, energy increases, ingredient costs and soon-to-be spiralling business rates we just cannot make this work.”
“I’d like to thank everyone for your support and patronage over the years. Thank you, Simon.”
It was only at the start of the week that Wood shared a frustrated post about a group of no-show customers over the weekend that failed to even pre-warn that they would no longer be attending one of his most exclusive and costly experiences.
We’re starting to lose count of how many local businesses are unfortunately struggling in the face of the rising business rates and energy bills that all independents are facing at the minute.
It was only last month that we saw Almous Famous had to call it a day with their Withington location and beloved sandwich spot Micky’s sadly suffer the same fate. Even cult favourite Cafe Marhaba looks to have gone up for sale. So tough to swallow.
We’re genuinely gutted for everyone involved with the brand. All the best, Si – we know you’ll be back stronger than ever one of these days.
Featured Images — The Manc Group
News
No trams to run through major Manchester city centre station this weekend
Emily Sergeant
Arguably Manchester city centre’s most important tram stop is set to be out of action this weekend, with no services running through it.
In what is another part of Transport for Greater Manchester‘s (TfGM) ongoing programme of works intended to “maintain and improve” the Metrolink system and ensure tram journeys in Greater Manchester remain “safe, reliable, and accessible”, it’s been confirmed that no trams will run through Cornbrook this weekend.
Due to this, there will be a change to operating patterns across the majority of the Metrolink network on both Saturday 5 and Sunday 6 October.
As is often the case in instances like these, disruption to passengers is expected.
On Saturday and Sunday [5 and 6 October], no trams will operate through Cornbrook.
There will be a change to operating patterns and replacement bus services will be in operation.
On Saturday (5 October), the tram service pattern will change to Altrincham – Old Trafford, Bury – Ashton-under-Lyne, East Didsbury – Firswood, Etihad Campus – Bury (peak time only) / Victoria (after peak only), Manchester Airport – Firswood, Rochdale Town Centre – Deansgate-Castlefield (via Exchange Square), and The Trafford Centre – Wharfside.
Similarly, on Sunday (6 October), the only difference to the above service pattern is that the Etihad Campus tram will only run to Victoria, not Bury.
Services will operate every 12 minutes, except for on the Eccles line, where no trams will run at all.
TfGM is also warning that there may be changes to the first and last tram times during these works, but, in bid to help people still get to their destinations, three bus replacement services will operate from Firswood to Victoria, Old Trafford to Piccadilly, and Eccles to Piccadilly.
No trams will run through major Manchester city centre station Cornbrook this weekend / Credit: TfGM
The Old Trafford to Piccadilly bus service will run through Wharfside, while the Eccles to Piccadilly will travel via MediaCity.
“These works are a vitally important part of maintaining a safe and reliable network for all our customers,” explained
Ian Davies, who is TfGM’s Interim Network Director for Metrolink, said these works are “a vitally important part” of maintaining the Metrolink, and that work has been scheduled by TfGM to “minimise disruption to passengers and residents as much as possible”.
The Manc -
27th October 2021 
