Welfare and family support

Universal Credit (UC)

The taper rate in UC will be reduced from 63% to 55%, meaning that UC claimants will keep an additional 8p for every £1 of net income they earn.

The Work Allowance will be increased by £500 a year. This is the amount that households with children or a household member with limited capability for work can earn before their UC starts to be reduced.

The aim is to introduce both UC changes no later than 1 December 2021.

The plans to create a new housing element of Pension Credit, replacing pensioner Housing Benefit, will now take effect in 2025. This will align with the full rollout of working-age Housing Benefit into UC.

National living wage (NLW) and national minimum wage (NMW)

The Chancellor confirmed the reports of increases to the NLW and NMW which appeared before the Budget.


Rat

Age 

£ per hour
from 1/4/2022 

Increase
over 2021/22 

National living wage 

23 and above 

£9.50 

6.6% 

National minimum wage 

21-22 

£9.18 

9.8% 

National minimum wage 

18-20 

£6.83 

4.1% 

National minimum wage 

16-17 

£4.81 

4.1% 

Apprentice rate 

All

£4.81 

11.9% 

The 9.8% increase in the NMW for 21-22 year olds reflects the aim to raise the NLW for all aged over 21 to two-thirds of median earnings by 2024. 

 

 

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