NEARLY 2 million low-income workers can get more cash through Universal Credit today.
Payments will increase up to £1,000 a year due to a change in the rules about how much you can earn before reducing payments
They’re called taper rates and job allowances – here’s what you need to know about them and how General Credit payment affected
What is the taper rate and job allowance?
When you are working and on a low income, you may be able to get General Credit.
Shrink rates previously reduced payouts to 63p for every £1 earned, but that has dropped to 55p for every £1.
It means almost two million Brits are working and Universal Credit is better from today keeping more of what they earn.
Changes to taper rates and job allowances – it’s a big win for The sun creates common credit campaign – first announced by Prime Minister Rishi Sunak in his Budget in October.
Also changing is the work allowance – an amount that some people can earn exempt from the taper rate.
You get a work allowance if you (or your partner) have child-rearing responsibilities or have limited ability to work.
How much depends on whether you claim the Universal Credit’s Housing Cost element.
How much more General Credits will you get?
The exact amount of Extra General Credit you will receive now will depend on your circumstances.
That includes whether you get a work allowance, how many hours you work, and how much you earn.
Someone working 35 hours a week for minimum wage would be better off by around £1,000 a year.
You will be notified of the changes through your Universal Credit account.
And the payouts from today on will be higher if you are working and claiming.
The extra money from this change is permanent, unlike the £20 a week surcharge through Covid which is temporary.
But don’t forget that your payments may also change if you also have a change in circumstances.
If you are unsure about additional things, you can talk to your work coach.
Can more than one person claim General Credit now?
More people will now be eligible for General Credit after a tapering rate change.
Reducing the shrinkage rate means it’s easier for you to qualify for benefits with a higher income.
It is thought that an additional 600,000 Britons now benefit from the change in the rules.
For example, a single parent with two children paying a monthly rent of £750 could currently earn just under £52,000 before losing the ability to claim benefits.
Previously, this figure was £44,500.
A single-earner couple in the same situation could earn almost £59,000 before the cut, up from £49,300 previously, the Resolution Foundation’s research team said.
Anyone who was not previously entitled to General Credit has were asked to re-check if they are now eligible.
According to EntitledTo, legacy beneficiaries who have not yet converted to General Credit may be better off under the new system.
But you should double check this as you won’t be able to go back to them after switching to Universal Credit.
EntitledTo’s The site has a calculator that includes new rates.
When will you receive the increase in your payments?
The changes to Universal Credit take place November 24, and those requesting additional funds will see cash appear in their bank accounts from today (December 1).
The cash will come with your regular Universal Credit payments, so when you get it will depend on what date you normally get it each month.
The extra money will continue monthly as the change to the rules is permanent.
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https://www.thesun.co.uk/money/16903976/universal-credit-1000-boost-rule-change-taper-exrtra-cash/ Everything you need to know about Universal Credit’s £1,000 boost as it starts to creep into bank accounts from today