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Mr Sunak confirmed that the taper rate – the amount of Universal Credit that gets withdrawn for every pound that a claimant earns through work – will be slashed from 63p to 55p on the pound, in an announcement to MPs in the House of Commons this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.
Tribute paid to man ‘loved by so many’ stabbed to death in Levenshulme
Daisy Jackson
The brother of a man stabbed to death in Levenshulme has paid a heartbreaking tribute to him.
Zherko Rasul Osman was just 24 years old when he was fatally wounded in an incident on Chapel Street on Saturday evening.
Despite the best efforts of emergency services personnel, Zherko sadly died at the scene.
Now, his brother has paid tribute to him, saying he was ‘someone who was loved by so many’.
The touching tribute reads: “My brother was a kind, friendly and loving person who never looked for trouble or wanted to harm anyone.
“He was loved and respected by his friends, his mates and the neighbours in the community where he lived. He had a good heart and would always be remembered for the warmth and happiness he brought to those around him.
“His life was taken so suddenly and for no reason, leaving a pain and emptiness that words cannot describe. We are heartbroken that someone who was loved by so many is no longer here. He deserved to live his life and make memories with the people he loved.
“He will never be forgotten. His smile, his kindness and the memories we shared with him will stay in our hearts forever. We love you, and we will miss you every single day.”
Zherko Rasul Osman suffered serious stab wounds on Chapel Street in Levenshulme at around 7.06pm on Saturday 15 August.
A 23-year-old man has been arrested on suspicion of murder, and he remains in custody for questioning. A 27-year-old man who had also been arrested on suspicion of murder remains on bail pending further enquiries.
Officers continue to make progress as the investigation continues. It is believed this was an isolated incident with no wider threat to the public.
Police are urging anyone who may have information to please report it through the dedicated online portal HERE.
Anyone in the Chapel Street area around the time of this incident, or who has mobile phone, CCTV, Ring doorbell or dashcam footage can contact police on 0161 856 9008 quoting the log number 2983 of 15/08/2026.
Alternatively contact independent charity Crimestoppers anonymously on 0800 555 111.
Government launches £442m drive to get rough sleepers off streets before Christmas
Emily Sergeant
Prime Minister Andy Burnham has launched a £442m drive to get rough sleepers off the streets before Christmas.
Learning from ‘innovative’ approaches put into place during the pandemic, the Government has announced that new accommodation will be rolled out across England this winter, as well as offering practical help with housing, health, and other needs to support people to build a more stable life for themselves in the future.
The new commitment to offer everyone a route off the streets this Christmas, along with boosted funding, reflect the Andy Burnham‘s national drive to make ‘real change’ and get everyone playing their part in ending rough sleeping.
Not only will these plans change the lives of rough sleepers, but it’s also said they will have huge benefits for the country as a whole.
Research from homelessness charity Crisis suggests that by preventing 40,000 people from becoming homeless for a year, taxpayers could save around £370 million.
The Government has launched a £442m drive to get rough sleepers off the streets before Christmas / Credit: Number 10 Press Office | Jon Tyson (via Unsplash)
As well provisions to get people off the streets, and the intensive ‘wraparound’ support, the newly allocated funding will also help local areas deliver more than 1,000 ‘settled’ homes over the next three years, it has been confirmed.
Areas facing the greatest pressures will receive the largest share of support.
Working alongside councils, Mayors will play a leading role in driving local action to end rough sleeping, and will be tasked with making decisions that are right for their communities to deliver help where it’s needed most.
The Prime Minister says he ‘won’t accept’ rough sleeping any longer. He commented: “No one should have to bed down in a doorway or outside a station, but we’ve seen it for so long that it feels like Westminster has started to accept it.
“That’s why my first instruction as Prime Minister was to end rough sleeping, and it’s why today we’re getting started with a national drive to get everyone in for Christmas. We did it in the pandemic, we can do it again. But it needs all of us.
The Manc -
27th October 2021 
