Universal credit payment boost for over one million people this month

THE DWP CHANGED HOW MUCH MONEY CAN BE DEDUCTED FROM YOUR UNIVERSAL CREDIT PAYMENTS AND IT MEANS ONE MILLION HOUSEHOLDS IN THE UK WILL BE BETTER OFF IN 2022 03:00, 31 May 2025 The Department

for Work and Pensions (DWP) recently confirmed that over one million households grappling with debt will retain an average of £420 more of their benefits each year, following a change to

Universal Credit implemented at the end of last month. The Fair Repayment Rate sets a cap on how much individuals in debt can have deducted from their benefits to repay what they owe. The

maximum amount that could be taken from someone's Universal Credit standard allowance payment to repay debt was 25 per cent, but this was reduced to 15 per cent on April 30. This

alteration applies to all assessment periods commencing on or after that date and means claimants due their monthly payments from May 30 will benefit from the reduction. It equates to an

average of £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children, whilst aiding people to pay down their debts in a sustainable manner. This

is part of the UK Government's Plan for Change to put more money into people's pockets and enhance living standards and signifies the Government's initial step in a broader

review of Universal Credit to ensure it continues to fulfil its purpose. Chancellor Rachel Reeves introduced the Fair Repayment Rate at the Autumn Budget, as part of wider efforts to elevate

living standards, combat poverty, and tackle the cost of living crisis, reports the Daily Record. The Chancellor remarked: "As announced at the Budget, 1.2 million households will keep

more of their Universal Credit and will be on average £420 better off a year. This is our plan for change delivering, easing the cost of living and putting more money into the pockets of

working people." Article continues below This comes amid revelations that nearly 2.8 million households experience reductions in their Universal Credit each month to address debts, with

the updated rate aiming to balance debt repayment while ensuring individuals can still manage their essential expenses. In an assertion of the government's commitment to worker

prosperity, Work and Pensions Secretary Liz Kendall stated: "As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits

they're entitled to - which will boost financial security and improve living standards up and down the country." She further emphasised the government's dedication to

improving prospects, saying, "We're delivering meaningful change to ensure everyone has a fair chance, the support they need, and real hope for the future." Article continues

below The introduction of the Fair Repayment Rate joins a suite of ambitious efforts under the UK Government's Plan for Change, aiming to spark growth and broaden wealth across the

nation. Spotlighting employment as a critical escape from poverty, the Labour Government unveiled the Get Britain Working White Paper, setting sights on an 80 per cent employment rate goal

through major reforms to Jobcentres, the creation of a new employment and advice service, plus a youth guarantee ensuring young people are either gaining work experience or pursuing

education. This is in addition to raising the National Minimum and National Living Wage to ensure that work is financially rewarding.