Budget Changes for Universal Credit Coming in Soon

Posted 29th March 2021

 

Budget Changes for Universal Credit Coming in Soon

 

From 24 November 2021, new rules come in affecting Universal Credit for some working claimants, which means they will be better off. Some working claimants have part of their earnings ignored by Universal Credit before their entitlement is affected, this is called a work allowance.  The change means the amount of earnings that are ignored will increase from £293 to £335 a month (or for those who have no help with their rent from Universal Credit, from £515 to £557).

 

Workers currently have 63% of their earnings deducted from their Universal Credit entitlement, this is reducing to 55% from 24 November 2021.  This second change means that employees who are on Universal Credit keep 45% of their earnings, instead of 37%

 

This mitigates the removal of the COVID uplift for some claimants, although the above changes have no impact on Universal Credit claimants who have no earned income.

 

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