Changes to Universal Credit 'to make work pay' would be 'attractive', MP says

27 October 2021, 08:52

Robert Jenrick told LBC reducing the taper rate for Universal Credit would be "sensible"
Robert Jenrick told LBC reducing the taper rate for Universal Credit would be "sensible". Picture: LBC/Alamy

By Daisy Stephens

Changes to Universal Credit - specifically a reduction in the taper rate - would be "sensible" and is an "attractive option" for the Chancellor, a Tory MP has told LBC ahead of the Budget on Wednesday.

Listen to this article

Loading audio...

The taper rate is the rate at which Universal Credit is reduced once a claimant starts to earn enough.

Currently it is 63 per cent, meaning that for every £1 claimants earn over their work allowance, Universal Credit is reduced by 63p.

When asked if Rishi Sunak would reduce it for those on low incomes, Mr Jenrick said it was "one option that's available to the Chancellor".

Read more: Budget 2021: Chancellor to insist UK is entering 'age of optimism' as he unveils plans

Read more: Budget 2021: Rishi Sunak to set out spending as country faces cost of living crisis

"I don't have any inside information," he said.

"It seems to me to be a very sensible step because Universal Credit is designed to make work pay, so if somebody takes on some extra hours they get to keep as much of that as possible and at the moment you see taper rates that mean that you lose as much as 60 per cent and that doesn't seem sensible.

"So I think that's an attractive option to the Chancellor which targets money at the people who need it the most and helps to incentivise work, which must be at the core of what we as Conservatives believe."

A change to Universal Credit is just one thing that could be announced at Wednesday's Budget.

Mr Sunak is also set to announce new funding to tackle NHS backlogs, nearly £7b to overhaul local transport, a new Global Britain Investment Fund and an increase in the National Living Wage.

LBC will bring you live coverage of Rishi Sunak's Budget Review on Wednesday from 12:30 and you can watch it on lbc.co.uk, listen live or watch in full on the Global Player.

More Latest News

See more More Latest News

iPhones are among the affected devices

Apple reveals serious security issue with iPhones, iPads and Macs that could give hackers complete control

Another day of travel chaos awaits commuters in and to London

Unions threaten to strike for 'as long as it takes' as millions face more travel chaos in London

The officer has been charged with dangerous driving

Armed officer charged with dangerous driving after he drove unmarked car to Streatham terror attack

Ryan Giggs' raunchy poems to his ex were read out in court

Ryan Giggs' mother sits in court as raunchy 'totem pole' poems he sent to ex are read out

Ms Marin said she is a normal 36-year-old who spends time with her friends

Finnish PM denies drug taking after footage of 36-year-old dancing at 'wild' party emerges

A-Level teens should take on apprenticeships, says Charlie Mullins

A-Level teens should take on apprenticeships, says Charlie Mullins

A new image, on the right, has been released

New image of man released by police after girl, 6, abducted and taken to woodland in Droylsden

Mr Mendy and Mar Matturie deny a string of sex offences

Benjamin Mendy 'told rape victim he had sex with 10,000 women and it was a privilege'

Anger as Southern Water ‘unsure’ how many litres of sewage released at closed beaches

Sewage scandal: pollution plaguing Britain’s beaches and beauty spots as water firms told 'clean up your act'

Rishi said his go-to item with his daughters would be a breakfast wrap, which has been discontinued

Rishi Sunak’s 'go-to' McDonald’s order with his family taken off menu over two years ago

Salman Rushdie suspect had ‘read two pages’ of the Satanic verses, after mother says ‘I’m done with him’.

Salman Rushdie attack suspect reveals he 'only read two pages' of Satanic Verses

Exclusive
Sadiq Khan said the heatwave was partly to blame for the recent rise in violent crime

Sadiq Khan blames London's rise in violent crime on longer days, school holidays and the heatwave

MP Margaret Ferrier has pleaded guilty to breaching Covid rules

MP Margaret Ferrier pleads guilty to Covid rule breach

The body of Aran Chada, 51, was found hundreds of metres below the surface of Lake Garda

Body of ‘Hero’ British father found at bottom of Italian Lake after he jumped from boat to save his son

Jeremy Corbyn joined striking rail workers on a picket line at Euston this morning

Labour MPs defy Starmer again by joining striking rail workers as Corbyn shows up sporting black eye

Forensic investigators at the scene in Auckland where the children's bodies were found

Horrified family finds bodies of two children in suitcases bought at abandoned storage unit sale in New Zealand